by Harry Menta, SBA
NEWARK, NJ-There is good news on SBA lending trends to NJ black-owned businesses. Loan approvals, over the first four months of FY 2018 (Oct. 1, 2017 thru Jan. 31,2018) are up a whopping 154 percent, while the dollar volume is up a robust 40 percent from a year ago.
While this is encouraging news for the New Jersey African American community, a recent study prepared by Alicia Robb, Ph.D of SBA’s Office of Advocacy shed light on the ongoing financing challenges facing minority entrepreneurs. Using data from the U.S. Census Bureau’s 2014 Annual Survey of Entrepreneurs (ASE), the study shows that nearly 60 percent of Black or African American business owners indicated they chose not to apply for financing despite needing the funds because they did not think their business would be approved by the lender, compared to 47 percent of White business owners and 44 percent of Asian business owners who responded to the same question.
The SBA New Jersey district office approved a total of 85 loans for $17.8 million during fiscal year 2017. In 2018, SBA is on pace to do 132 loans for $21 million for African American small business owners around the state.
Overall, the SBA New Jersey district office has approved a total of 827 loans for $333.4 million. SBA lending is up 53.4 % and dollar volume is up 39% over the 539 loans for $240 million approved during FY 2017 (Oct. 1, 2016 thru Jan. 31, 2017).