The first quarter of the fiscal 2011 saw $311 million borrowing of SBA backed loans by small businesses of New Jersey. According to SBA, this is more than double the amount been provided the previous year. In first quarter of fiscal 2010, federal program provided $133.4 million.
Among the gainers, Passaic County saw largest increase in the State as small businesses borrowed $20.3 million that is a straight up from $2.9 million in 2010. Bergen county small businesses received double the amount of loan from banks. According to SBA, $33.4 million loan went to Bergen County that is up from $21.6 million.
The increase in statewide lending to small businesses is due to new benefits offered by Congress in-order to boost small business lending. Waiver in administrative fees is a big factor that has led to an increase in lending. Backing provided by SBA for almost 90 percent of the loan is another reason for its increase.
Moreover, SBA-backed loans vary in size and industry. This is in accordance to the data released by federal agency. In fact, it would be impossible to secure funding without the federal program. Deborah Hoffman, Director, Economic Development Passaic County, says, “For those companies looking for financing, the elimination of those fees was a big factor to go with SBA loans.”
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to