Financing 

7(a) Loan Guaranty Program

The 7(a) Loan Guaranty Program serves as the SBA’s primary and most flexible business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal channels at reasonable terms. When a qualified small business applies to a lender for a loan, the lender decides if the application merits a loan on its own or if it requires an SBA guaranty. Last year the SBA’s New Jersey District Office guaranteed 2,180 7(a) loans for $419,800,000.

In guaranteeing the loan, the SBA assures the lender that, in the event the borrower does not repay the loan, the government will reimburse the lending institution an amount equal to the guaranty portion of the loss. Total loan cannot exceed $2,000,000. SBA has, temporarily under the Recovery Act, increased the guaranty on some 7(a) loans up to 90 percent.

7(a) loan proceeds can be used for most sound business purposes, including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation, and new construction), leasehold improvements, and debt refinancing (under special conditions).

For more information on the 7(a) Loan Program, visit SBA’s website: http://www.sba.gov/financing/sbaloan/7a.html

SBA Express

As a component of the 7(a) loan program, the SBAExpress Guaranty Loan Program provides both the lender and the 7(a) borrower with prompt and efficient service. Loans made under the SBAExpress program can be structured as a term loan or as a revolving line of credit. More than 60% of the New Jersey District Office's loans originate under this program, which permits lenders to make loans of up to $350,000 while using their own application forms and obtaining a 50% guaranty from the SBA. The agency provides lenders with a turn around time of 36 hours after submission of the request for a guaranty. Last year the SBA's New Jersey District Office guaranteed 1,274 SBAExpress loans for $68,100,000.

For more information on the SBAExpress Program, visit: http://www.sba.gov/financing/lendinvest/sbaexpress.html 

The 504 Loan Program

The 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings and machinery and equipment for expansion or modernization. Increasing numbers of New Jersey businesses have been turning to 504 financing to meet their long term expansion needs. Last year the SBA's New Jersey District Office participated in 90 504 loans for $70,000,000.

The SBA portion of a 504 loan is ordinarily limited to $1,500,000. However, loans that show economic enhancement through job creation and retention can go up to $2,000,000 and loans to small manufacturers can reach $4,000,000.

This program is popular with New Jersey lenders, who receive a first mortgage lien for 50% of the 504 project, while benefiting from the SBA's guaranty of up to 40% of the project cost. Borrowers must contribute at least 10% of project cost.

The SBA participates by guarantying a debenture issued by a private Certified Development Company ("CDC") with a term of 10 or 20 years. The CDC's debenture finances up to 40% of the project.

For information on New Jersey 504 CDC's, click here

CommunityExpress

The CommunityExpress Pilot Loan Program is a collaborative effort between the SBA and National Community Reinvestment Coalition (NCRC) and its member organizations.  Under the pilot, financial assistance is offered to pre-designated geographic areas serving mostly Low and Moderate Income areas and New Markets small businesses.  The program also includes technical and management assistance, which is designed to help increase the loan applicant’s chances of success. The CommunityExpress makes loans of up to $250,000.  Last year the SBA’s New Jersey District Office guaranteed 183 CommunityExpress loans for $5,000,000.

For more information on the CommunityExpress Program, visit:
http://sba.gov/financing/sbaloan/communityexpress.html.

Patriot Express

Called Patriot Express, this pilot initiative integrates all of SBA’s programs and services to veterans and members of the military community. Patriot Express targets those in the military community who want to establish or expand small businesses.  Patriot Express loans may go up to $500,000. Last year the SBA’s New Jersey District Office guaranteed 8 Patriot Express loans for $754,000.

Small business must be owned and controlled by one or more of the following groups: veteran, active-duty military, reservist or National Guard member or a spouse of any of these groups, or a widowed spouse of a service member or veteran who died during service or of a service-connected disability.

For more information about the Patriot Express Initiative, go to www.sba.gov/patriotexpress or to www.sba.gov/localresources/district/nj/index.html.

SBA Microloan Program

The SBA also recognizes the need for loans in smaller amounts that may not be available from ordinary commercial lending institutions. The Microloan Program has been created to service small businesses needing smaller amounts.

The Microloan Program makes loans of up to $35,000 available through four New Jersey based private, non-profit intermediaries. The SBA makes or guarantees a loan to an intermediary, who in turn, makes the microloan to a credit worthy small business applicant. Last year, 124 New Jersey businesses obtained $2,300,000 of this creative funding.

For more information on New Jersey Microlenders see: NJ_MICROLENDERS
For more information on the Microloan Program, visit: http://www.sba.gov/financing/sbaloan/microloans.html

Our Lenders

In order to provide New Jersey businesses with the greatest possible access to capital, the New Jersey District Office has entered into partnership agreements with 190 lending institutions. All of these lenders can offer small business customers access to loans backed by SBA loan guaranties.

The SBA works with all of our lending partners to provide borrowers with the most efficient and knowledgeable service possible. Depending upon their levels of experience with SBA programs, some lenders can offer additional benefits to our borrowers.

Our Preferred Lenders Program ("PLP") allows our most active, qualified, and knowledgeable lenders to obtain SBA approval of their loan applications in 24 hours. Many of our New Jersey lenders have attained PLP status.

Other experienced SBA lenders qualify under our Certified Lenders Program ("CLP"). A CLP lender receives a response to its request for a loan guaranty in three (3) days.


For a complete list and contact information on PLP and CLP lenders:  click here

For more information or to obtain a list of the New Jersey District Office's lenders: click here