The U.S. Small Business Administration (SBA) recently reported federally approved loans for small businesses in New Jersey are up in 2012, which has caused many to believe some small business challenges may be a thing of the past and the economy is improving, according to The Star-Ledger.
Small businesses in the Garden State received 41 percent more loans backed by the SBA this year compared to the same time period a year prior. The organization has backed 499 loans for $245 million through May 31 compared to the 354 loans for $185 million last year, according to the publication.
The two counties to receive the most loans were Bergen County and Passaic County, which were supported on 89 loans and 22 loans, respectively. Bergen County increased from 43 loans last year during the same time period, and Passaic was up from 15 in 2011.
"We are seeing the credit markets experiencing positive growth throughout New Jersey," director of the New Jersey district office of the SBA Alfred Titone told the news source. "Both lenders and borrowers are showing more confidence in the economy and that simply translates into more demand for capital."
The SBA does not grant loans, but it guarantees some loans created and administered by commercial lending institutions. It is known for helping out start-ups companies that are having a tough time receiving a loan through traditional methods, according to the media outlet.
The organization expects this trend will not revert back, and will continue to increase throughout the next few years.
"Based on forecasts from our top economists, the steady growth for the remainder of this year will set the stage for the beginning of robust growth in this region over the next four years," Jorge Silva-Puras, regional SBA administrator, told the news outlet.
According to The New Jersey Record, the top lenders for New Jersey included JP Morgan with 68 loan approvals for $7.8 million, followed by TD Bank, Sovereign Bank, New Bank and New Jersey Business Finance Corp.
Across the country, more small businesses are opting for loans and starting to report positive returns. Some analysts believe that how small businesses are doing can help determine how the economy is doing as a whole.