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Small Business Loans In New Jersey: Top Local Funding Options

New Jersey also known as the “Garden State,” is located between Washington DC and Boston - right in the middle of the United States' economic powerhouse. As such, New Jersey’s small businesses have endless opportunities when it comes to industry resources and attracting consumers.

At a glance  According to the recent Small Business Administration statistics, New Jersey has 908,209 small businesses, accounting for 99.6% of the state's businesses. The state’s small businesses employ more than 1.8 million workers or 49.9% of the private workforce. According to the Small Business Administration (SBA) New Jersey District office, the 2019 FY lending for small startups topped $805 million. Read on to learn about the top funding opportunities in New Jersey for small businesses.

Top Six New Jersey Small Business Loan Options

Do you have a startup in mind that needs funding to get started? Or do you have an existing startup that needs funding in order to expand? There are several local fund options you can apply for in New Jersey. The state’s small loan option comes mainly from nonprofit organizations, government agencies, online lenders, and more.

Here are a few companies that offer tailored lending packages to startups in the state.

Advance Point Capital

Advance Point Capital is one of the top local lending institutions for small businesses in New Jersey. Since the institution’s inception, they’ve been known to provide adequate funding to help improve startups. The lending institution understands that the needs and purposes of each startup are unique. Due to this, they offer several varieties of funding options for small businesses, in the form of alternative business loans.

While traditional fundings such as bank loans are usually difficult for small businesses to get, Advance Capital has many options for you. When you are ready to apply for a loan, their finance expert will discuss your goals and needs with you, and will provide you with the options that best suit your business requirements. 

The most common types of loans include:

  • Business term loan: Its limit is between $10,000 and $1,000,000,
  • A business line of credit: The business line of credit offers a loan amount between $10,000 and $1,000,000.
  • Short-term business loan
  • Small business loan: The lending institution also offers small business loans between $10,000 to $1,000,000.

Funding Pilot

Funding Pilot is another top lending institution that you can consider when you need a startup loan. Regardless of your business type or credit score, the institution has loan programs that will cater to your needs. The Funding Pilot loan application process is fast and flexible. Additionally, the lending institution offers benefits such as low interest rates and monthly payments. The different startup loan options available include:

Unsecured Loan

An unsecured loan is the most popular lending program at Funding Pilot. An unsecured loan is a type of startup funding that offers startup owners access to capital with great flexibility relating to time in business, credit score, industry type, quick access to funds, and more. You can opt-in for an unsecured loan if you need funding to: 

  • Acquire new contracts
  • Get working capital
  • Develop a new service or product
  • Pay off existing debt
  • Purchase new real estate
  • Hire new employees, and any more 

Secured Loan

Secured small business loans offer unique funding opportunities for startup owners. Unlike other commercial lending options, it can be funded with no income documentation, low credit score rate, no minimum time in business, and more. Additionally, it comes with other benefits like a low interest rate of at least 4.25% and a repayment duration of up to 30 years. 

As a small business owner, you can use this funding option for:

  • Funding a new startup
  • Purchasing existing startups
  • Working capital
  • Business expansion
  • Purchasing an investment property

Business Line of Credit

Funding Pilots offer a wide range of funding options for businesses seeking a business line of credit. Each business line of credit has its benefits so that you can choose based on your needs. The types of line of credit available at Funding Pilot include: startup business line of credit, startup business credit card, no docs business line of credit, and more. 

The Capital Lenders

The Capital Lenders are a private lending institution that offers creative funding for businesses. If you need working capital, project financing, franchise funding, lines of credit, or any other loan type, this lending institution is an option to consider.  

The Capital Lenders will help you find the best financing options for you. The institution offers funds of up to $5,000,000 with repayment terms of over 25 years, and they specialize in franchise financing. The funding timeline is 48 hours. If you’re unsure how you can benefit from the institution’s services, they offer a free analysis of your startup needs.

Ready Capital Lending

Ready Capital is a non-bank small business and real estate lender that has provided more than $3 billion in capital nationwide. The institution offers secured and unsecured loans for small businesses in NJ. The institution provides funds between $350,000 and $5 million with competitive interest rates and flexible payment plans. 

Its loans have benefits like longer terms, flexibility, lower down payment, and other financing benefits to improve your cash flow as you start or expand your startup. 

Lakeland Bank

Lakeland Bank came into existence in 1956, and it’s owned by three local businessmen who recognized the need for a local bank that can serve the community conveniently. Lakeland Bank is a subsidiary of Lakeland Bancorp, Inc., and it has over $7.6 million in assets. The bank has extensive and commercial lending centers throughout the state. The lending institution offers various funding opportunities for startup owners.

Whether you need funds for long-term capital investments or working capital to grow, Lakeland Bank has what you need to take your business to the next level. They offer term loans and small business lines of credit. Term loans are credit lines from $5,000 to $500,000 at a fixed rate and payable over 1 to 15 years. It also offers funding from $10,000 to $500,000 on a revolving credit basis.

Summary Table

Financial Institution

Amount of Loan

Interest rates

Requirements

Advance Point Capital

Based on the kind of funding you’re applying for. For instance, small business loans offer between $10,000 and $500,000. SBA loans offer between $30,000 and $5 million 

Based on the kind of funding you’re applying for. For instance, small business loans have an interest rate of at least 7.99%. SBA loan interest rates range from 4.75 to 8.99%

A one-page application


A bank statement is needed for review

All credit types are considered

Funding Pilot

It’s based on the kind of funding you’re applying for:

    • Unsecured business loan: $10,000 to $500,000
  • Secured business loan: $1,000 to $5,00000
  • Startup business loan: $5,000 to $250,000

The rate depends on the loan you’re applying for:

Real estate loans: rates start at 4.5$ APR

Business loan: rates start at 5.49% APR.

Lines of credit loan: rate start at 7.99% APR

It’s based on the kind of funding you’re applying for:

    • An unsecured business loan requires a minimum credit score of 680
  • Secured business loan: needs a minimum credit score of 550 + FICO
  • Startup business loan: needs a minimum credit score of 680 and no collateral needed 

The Capital Lenders

Up to $5,000,000

The rate is based on the kind of loan you’re applying for. 

You’ll be required to fill a form and submit it on the site. And one of their loan experts will get across to you.

Ready Capital Lending

$350,000 up to $ million

Up to $25,000:

  • base rate of 4.25% with less than 7-year repayment term
  • base rate of 4.75% with more than a 7-year repayment term

$25,000 to $50,000:

  • base rate of 3.25% with less than 7-year repayment term
  • base rate of 3.75% with more than a 7-year repayment term

$50,000 or more:

  • base rate of 2.25% with less than 7-year repayment term
  • base rate of 2.75% with more than a 7-year repayment plan.

The lender doesn’t provide the borrower requirement for its loans directly on its website but stated that the Debt Service Coverage Ratio (DSCR) is 1.15 to 1.30

Lakeland Bank

Term loans: $5,000 to $500,000

Small line of credit: $10,000 to $500,000

The rate depends on the loan you’re applying for 

The company must have been running for at least two years

Top Online New Jersey Small Business Loan Options

Aside from the private and government loan options, small startup owners in New Jersey can also apply for funding through the various online loan providers, who are available nationally. Here are some of our recommended online loan institutions.

1. Kabbage

Kabbage is one of the top online lenders for startup funds. They’re fast, flexible, technology-driven, and secure. With their quick online application process, flexible access, and online security, they’re trusted lenders for startup funds. The online lending institution offers funds of up to $250,000. Some benefits include:

  • Low credit score requirements 
  • Fast application
  • Variety of loan options

2. National Funding

National Funding provides fundings to a wide range of small businesses in New Jersey. One of the best things about this lender is its bad debt option, where your past debt doesn’t affect your future success. Some benefits include:

  • Fast application
  • Low credit score requirement
  • You can reapply once approved

3. Funding Circle

If you need quick funds for your startup, Funding Circle is an excellent option. This online loan institution offers a loan amount between $25,000 and $500,000 with a five-year repayment plan. The application process is easy and faster, and you’ll receive the loan in your bank account within a week. To qualify for the offer, you need:

  • A minimum credit score of 620
  • Business should have been running for two years or more

How to Prepare for a New Jersey Small Business Loan

Once you have decided on the loan you wish to apply for, you need to prepare your loan application.  All money lenders have different criteria for evaluation. However, there are some things you need to put in place for the success of your loan application, including:

  • A proper business plan
  • Maximize your business resources
  • Get a good credit score

The Bottom Line

Now that we have discussed some of the best New Jersey small business loans available for startups in New Jersey, you need to start planning your next business move. Startup loans for entrepreneurs are an excellent option if you meet all the requirements. However, if you’re not qualified for such loans, you can explore some of online lending options covered in this article.