See what bank topped N.J. list of small business lenders

Category: Business Loans
Published: Saturday, 23 January 2016
Written by Super User

Unity Bank topped all Small Business Administration lenders in New Jersey during the year that ended Sept. 30, according to a news release issued Tuesday by the bank.

The bank, headquartered in Clinton, provided $41.7 million in Small Business Administration loans, a loan volume increase of nearly 147-percent from the prior years total of $16.9 million, according to the release.

Unity Banks total number ofSmall Business Administration loans grew by 50 percent, increasing from 26 to 39. The banks average loan size rose by nearly 74 percent, increasing from $650,558 to $1,128,903.

As a community bank, being number one in SBA loan volume is a great achievement because it illustrates our commitment to supporting businesses of all shapes and sizes, said Unity Bank President and CEO James A. Hughes. We pride ourselves in being responsive to customer needs and have the ability to get businesses the funding they need in an expeditious manner.

Unity Bank looks forward to another great year partnering with both new businesses and existing enterprises looking to invest in their future.

The bank participates in the 7a Loan Program, the administrations primary program to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels.

Unity Bank also participates in the SBA 504 Loan program, an economic development program that offers small businesses long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization.

According to the bank, it ranks consistently among the top 10 of New Jersey Small Business Administration lenders in loan volume. The program also serves parts of Pennsylvania and is expanding into New York.

Unity Bank and other lenders will be honored during the SBA New Jersey District Office awards reception on Jan. 28.

Nonprofit makes $5M in loans available to Porter Ranch businesses

Category: Business Loans
Published: Saturday, 23 January 2016
Written by Super User
Congressman Brad Sherman (left) and Councilman Mitch Englander stand in front of the relief well at the Aliso Canyon Storage Facility. Courtesy Rep. Sherman

A nonprofit organization is making $5 million in loans and other financial assistance available to businesses affected by the ongoing natural gas leak near Porter Ranch and resulting exodus of residents, Councilman Mitch Englander said Wednesday.

The Valley Economic Development Center will offer loans ranging from $1,000 to $50,000 to businesses that have lost revenue due to the gas leak at the nearby Aliso Canyon Gas Storage Facility and need help paying their bills.

The facility’s operator, Southern California Gas Co., estimates it may take until the end of February or March to fix the leak, which was discovered on Oct. 23. Since that time, thousands of families have relocated out of the area.

Englander said some businesses have been able to rely on reserves to help them through the first month or two, but it’s just now catching up with them.

The bills are coming, but the customers aren’t, he said.

The nonprofit presented a $35,000 check today to one affected business, Starter Set Preschool and Child Development Center, which lost 17 of its students during the gas leak, according to VEDC Director of Marketing Lisa Winkle.

We’re there to help small businesses in the area that have been impacted by this disaster, Winkle said.

The $5 million being offered includes micro-loans, which are immediately available, as well as small business loans between $50,000 and $250,000, which take longer to give out.

VEDC was formed in 1976 and has offered financial assistance to small businesses amid various disasters, including the 1994 Northridge earthquake.

--Staff and wire reports

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What To Know When Considering Small Business Loans

Category: Business Loans
Published: Friday, 22 January 2016
Written by Super User

Crowdfunding and investors, venture capital and seed funding - all are buzzwords thrown around in the startup world focusing on getting the money to start your own business. Securing the funds to get your business off the ground can seem like a daunting, overwhelming task. (In some cases, it is!) In reality, many businesses start out with a small business loan.

Small business loans help the new company buy supplies and technology, hire employees, and secure space and services. Knowing the basics of business loans, when they're a good fit, and how a loan could help are key factors in launching a company.

The Basics

It's important to start the lending process early, because it takes time. Waiting until the last minute could jeopardize launch plans, so researching a lender ahead of time is critical. Smaller banks and credit unions often have more flexible lending standards, while big banks may offer cheaper rates - so the lender you choose should depend on the individual needs of your business. You may also get rejections - potentially lots of rejections. Don't give up, but consider reevaluating your strategy if this keeps happening to you.

When It Fits

A small business loan could be a good fit if you need money for a sound business purpose and have excellent personal and financial history. Having reasonable collateral will also make you a good candidate, since some lenders will not approve a loan without it. Lenders may hesitate to lend to a startup, but if you can make a solid business case for your need and demonstrate that you have the ability to pay it back, you have a higher chance of approval.

How It Helps

In all likelihood, you'll still have to find ways to get money from other sources. However, a small business loan can serve as an emergency backup fund, extra money to upgrade technology and facilities, or to bridge the gap between what you can rustle up from other investors and the total cash you'll need to launch. Just make sure you're in the best financial shape possible before taking the big leap - the last thing you want is to end up in a position in which you can't pay back the loan.

Obtaining a small business loan can be a fantastic way to get your business off the ground. Arming yourself with some basic knowledge and a thorough understanding of the process should help things go smoothly. Perhaps the most important thing to remember is that a reputable lender will ensure that you fully understand everything involved with obtaining the loan. If you feel uneasy, search for someone you can trust - after all, your business (and livelihood!) is on the line. 

Rs 1 lakh crore small business loans face uncertanity after Chennai floods

Category: Business Loans
Published: Thursday, 21 January 2016
Written by Super User
MUMBAI: The Chennai floods could put loans worth close to `1-lakh crore, advanced to small businesses and the priority sector in Tamil Nadu, at risk. However, the bad loans are expected to show up only in the next fiscal as relaxations in repayment will obscure the stress for the initial period. According to a research report by Kotak Institutional Securities, post natural calamities, loans in affected states show an immediate rise, helping banks show a healthier balance sheet. But it is only two years down the line, when concessions on repayment run out, that bad loans start rising. The study shows that this has been the experience in Uttarakhand and in Jammu amp; Kashmir and might prove to be a pointer for banks that have large exposure in Chennai.

According to the report, of the total bank loans of ` 6.5lakh crore disbursed in Tamil Nadu, public sector banks have 67% market share compared to 28% for private banks.Among all the affected areas in the state, Chennai alone contributes close to half of the loans and deposits.

The report says that a sizeable portion of this is loans to corporates, such as auto and auto ancillaries, which is not at risk.

The portfolio at risk is around 35% of loans, for example, which is primarily in the priority sector, the report said.This would mean that the portfolio at risk is around `1 lakh crore. Among the banks which have a high concentration of business in the state are City Union, which has 70% of its branches and close to three-fourths of its business in the state. Karur Vysya Bank has close to half its business coming from Tamil Nadu. In the aftermath of the calamity , banks have been asked to waive penalty on repayment of loans as well as defer compounding of interest charges.They have also been asked to waive loan processing charges and do away with penalty on cheque bouncing cases. Farm loans, which are essentially short-term loans, are being converted into long-term loans, and long-term loans associated with farming are being restructured.