From 1 October 2023 to 30 June 2026, 168 SBA lenders approved 5,682 7(a) loans in New Jersey worth $2,406,090,500. The median loan was $150,000, level with the national $150,300, and 47.4% of loans went through SBA Express. The median rate was 10.5%, above the national 10.25%. Acquisitions made up 7.3% of loans, below the national 10.4%, at a median of $705,000. Buyers in New Jersey should plan for the state's bulk-sale tax notice, environmental rules for industrial sites and, for restaurants, a liquor license transfer, each of which a lender will want settled before funding.
| Measure | New Jersey | All industries |
|---|---|---|
| SBA 7(a) loans approved | 5,682 | 162,355 |
| Median loan | $150,000 | $150,300 |
| Middle half of loans | $50,000 – $436,600 | $50,000 – $500,000 |
| Loans of $1 million or more | 11.2% | 12.9% |
| Median rate at approval | 10.5% | 10.25% |
| Middle half of rates | 9.75% – 11.5% | 9.3% – 11.25% |
| Acquisitions (change of ownership) | 413 (7.3%) | 16,849 (10.4%) |
| Median acquisition loan | $705,000 | $693,000 |
| Lenders that made these loans | 168 | 1,648 |
| SBA 504 loans (real estate, equipment) | 229 | 16,714 |
Approvals FY2024 – FY2026 to date (1 Oct 2023 – 30 Jun 2026), cancelled loans excluded. Source: SBA 7(a) and 504 FOIA loan records, as of June 30, 2026.
- 7(a) loans approved
- 5,682 from 168 lenders (1 Oct 2023 – 30 Jun 2026)
- Median loan
- $150,000 (national $150,300)
- SBA Express share
- 47.4%
- Median rate at approval
- 10.5%, middle half 9.75% to 11.5%
- Acquisition loans
- 413 (7.3%), median $705,000 at 9.75%
- SBA 504 loans
- 229, median $1,109,000
Two markets under one median
The median New Jersey loan was $150,000, almost exactly the national figure, but the median hides a split. Nearly half of all loans, 47.4%, went through SBA Express, which goes up to $500,000 with a 50% guaranty and is used for small term loans and lines. At the other end, 636 loans, 11.2% of the total, were for $1 million or more, and one loan in ten was above $1,101,380. The middle half ran from $50,000 to $436,600.
| Measure | New Jersey | National | Reading |
|---|---|---|---|
| Median 7(a) loan | $150,000 | $150,300 | Level on the median; wider at both ends |
| Median rate at approval | 10.5% | 10.25% | Three loans in four priced at 9.75% or more |
| Acquisition share | 7.3% | 10.4% | Fewer purchases, but large ones |
| Fixed-rate share | 8.1% | Almost all New Jersey SBA debt floats | |
| Start-ups / franchises | 13.5% / 9.6% | Mostly existing businesses |
The median sits on a line that matters. SBA guarantees 85% of 7(a) loans of $150,000 or less and 75% of larger ones, and the rate cap for loans from $50,001 to $250,000 is the base rate plus 6%. A borrower whose request is just above $150,000 is asking the lender to carry more unguaranteed exposure, and it is worth knowing that before choosing an amount. With only 8.1% of loans fixed, most New Jersey borrowers should test their payment at a higher base rate too; see fixed vs variable rate business loans.
Express suits a small, simple need. It is a poor fit for an acquisition or a refinancing of several debts, where a lender's full underwriting is what gets a larger loan approved; SBA 7(a) vs SBA Express explains the difference.
Restaurants, salons and gyms: licenses and leases
By loan count the top five New Jersey industries were full-service restaurants (282 loans), limited-service restaurants (172), residential remodelers (161), fitness and recreational sports centers (132) and beauty salons (105). Four of the five are consumer businesses in leased space, and two issues run through them.
Liquor licenses. New Jersey limits the number of retail consumption licenses each municipality may issue, so a restaurant's license can be a large part of what a buyer is paying for. The transfer needs the municipality's approval, and lenders will not fund until it is granted or the closing is structured around it. A lender values the license as part of the business, not as collateral it can easily sell. See full-service restaurants.
Leases. Restaurants, gyms and salons live and die by location. Lenders want the lease, with renewal options, to run at least as long as the loan, and in an acquisition they want the landlord's consent to assignment in hand. Salons add a question about how stylists are paid: a salon of booth renters has rent income, not service revenue, and lenders read it differently. See beauty salons, fitness centers and lease assignment in an acquisition loan.
Buying a New Jersey business: the state's closing steps
New Jersey lenders approved 413 acquisition loans at a median of $705,000 and a median rate of 9.75%. The federal rules are the same everywhere: at least 10% of total project costs as equity, a seller note counting for up to half of that only on full standby for the life of the loan, no earnout, and an independent valuation where the amount financed, less appraised real estate and equipment, exceeds $250,000. From 1 October 2026 a change of ownership must show 1.25x coverage on historical results, with financial due diligence on every deal and a quality of earnings report on acquisitions of $3 million or more excluding real estate. New Jersey adds its own steps.
| Step | What it is | What the lender needs |
|---|---|---|
| Bulk sale notice | A buyer of a business's assets must notify the state Division of Taxation before closing, or it can become liable for the seller's unpaid state taxes | The filed notice and the Division's response; any amount it requires held in escrow from the price |
| Industrial site transfer (ISRA) | Certain industrial businesses must address environmental conditions before the business or its property changes hands | Evidence of compliance; for real estate collateral, SBA's environmental review |
| Liquor license transfer | Municipal approval of the new owner | The approval, or a closing structured around it |
| Lease assignment | Landlord consent to the buyer taking over the lease | Signed consent, with a term that covers the loan |
| Seller transition | SBA bars the seller from staying as owner, officer or employee | A consulting agreement of up to 12 months, or up to 24 months from 1 October 2026 |
The bulk sale notice is easy to leave late. Because the state can require part of the purchase price to be held back until the seller's taxes are cleared, the notice affects the sources and uses as well as the timeline. Lenders expect it handled through escrow; see escrow and holdbacks and sources and uses.
Buildings and the 504 program
New Jersey borrowers took 229 SBA 504 loans at a median of $1,109,000, larger than the median acquisition loan and a sign of what owner-occupied property costs in the state. A 504 project is typically 50% bank, 40% CDC and 10% borrower (15% for a new business or special-purpose property, 20% for both), and the business must occupy at least 51% of an existing building or 60% of new construction. The CDC's share goes up to $5 million, or $5.5 million for manufacturers and energy projects.
Property in an older industrial corridor brings environmental questions to the front. Lenders order environmental reviews on commercial real estate collateral, and a property subject to ISRA has to satisfy the state as well. Start that work before the purchase contract, not after the appraisal. SBA 504 vs a conventional commercial mortgage covers the financing choice.
SBA or conventional for a New Jersey company
Only 13.5% of New Jersey loans went to start-ups: most borrowers are existing businesses, and many established ones have conventional options. The choice turns on what the deal needs.
- SBA 7(a) for an acquisition that is mostly goodwill, where the 10% equity requirement and a 10-year term make the numbers work; SBA requires coverage of at least 1.15x today, and 1.25x on historical results for a change of ownership from 1 October 2026.
- SBA 504 or a conventional mortgage for an owner-occupied building, compared on equity, rate and prepayment terms.
- A conventional or asset-based line for working capital that rises and falls with receivables; asset-based lenders typically advance 80% to 90% of eligible receivables.
- A conventional term loan where earnings comfortably exceed the 1.25x coverage banks commonly look for, collateral carries the loan, and the owners would rather avoid SBA's guaranty fee and eligibility review.
Transparent's lender book holds 1,800+ lenders, among them 278 that write SBA 7(a) and 504 and 235 that write asset-based loans and lines, so a New Jersey file can be priced with SBA and conventional lenders side by side. The file starts with two to three years of business and personal tax returns, a P&L, balance sheet and debt schedule, and a personal financial statement for each 20%+ owner; for an acquisition, the target's latest full year and the letter of intent. Once the documents are in, the full lender package is built in a day. Nothing is charged before closing, and on SBA loans the lender pays Transparent. See how we underwrite.
Common questions
- What is the typical SBA loan size in New Jersey?
- The median 7(a) loan approved from October 2023 to June 2026 was $150,000, level with the national $150,300. The middle half ran from $50,000 to $436,600, and 636 loans were for $1 million or more.
- Does it matter whether my loan is above or below $150,000?
- It can. SBA guarantees 85% of loans of $150,000 or less and 75% of larger ones, so a lender carries more of the risk just above the line. The rate cap, the base rate plus 6%, is the same on both sides until $250,000.
- What is New Jersey's bulk sale notice?
- When a business sells its assets outside the ordinary course, the buyer must notify the state Division of Taxation before closing. If it does not, the buyer can become liable for the seller's unpaid state taxes. The state may require part of the price to be held in escrow until the seller's taxes are settled.
- Can an SBA loan finance a restaurant's liquor license in New Jersey?
- A license can be part of what an SBA acquisition loan pays for, but the transfer needs municipal approval, and lenders will not fund until it is in hand or the closing is structured around it. Lenders value the license as part of the business rather than as separate collateral.
- Why are New Jersey SBA rates above the national median?
- The median rate was 10.5% against 10.25% nationally, and three loans in four priced at 9.75% or more. The median loan is the same size as the national one, so SBA's size-based caps do not explain the gap; it is lenders' pricing within the same cap, in a market where nearly half the loans were Express loans and only 8.1% were fixed. Acquisition loans, which are larger and sit under a lower cap, priced at a median of 9.75%.