SBA 7(a) Loans in Paterson

Paterson is the third-largest city in the U.S. state of New Jersey, after Newark and Jersey City. It is the county seat of Passaic County. As of the 2010 United States Census, its population was 146,199, making it New Jersey's third-largest city. Paterson has the second-highest density of any U.S. city with over 100,000 people, behind only New York City. For 2015, the Census Bureau's Population Estimates Program calculated a population of 149,222, an increase of 1.7% from the 2010 enumeration, ranking the city the 210th-most-populous in the nation.

Paterson is known as the "Silk City" for its dominant role in silk production during the latter half of the 19th century. The city has since evolved into a major destination for Hispanic immigrants as well as for immigrants from the Arab and Muslim world. It has the second-largest Muslim population in the United States by percentage.

The economy of Paterson is based on a diverse set of industries. The city's largest employer is the government, which employs about one-fifth of the city's workforce. The second-largest employer is healthcare, which employs about one-sixth of the workforce. Other major industries include manufacturing, retail, and education. Paterson is also a major transportation hub, with several major highways and public transportation systems passing through the city.

Paterson has a large number of small businesses, many of which are owned and operated by immigrants. The city's main shopping district is located along Main Street, which is lined with a variety of small businesses, including restaurants, bakeries, grocery stores, and clothing stores. There is also a growing number of small businesses in the city's downtown area.

Comparing SBA loan types in Paterson

Three SBA programs come up most often for Paterson, New Jersey businesses, and they do different jobs.

SBA 7(a) loan: program overview

Maximum loan
$5 million (sba.gov, fetched 2026-07-24)
What it funds
Working capital, equipment, owner-occupied commercial real estate, refinancing business debt, and business acquisition.
Who lends
Participating banks and non-bank lenders. The SBA guarantees a portion of the loan; it does not lend directly to borrowers.
Rate structure
Negotiated between lender and borrower, capped at the SBA maximum. Most 7(a) loans price off the WSJ prime rate plus a spread.
Personal guaranty
Required from every owner of 20% or more of the business (13 CFR 120.160(a)).

SBA 7(a) rates, fees, and terms · Eligibility and qualifications · Get financing

Program facts confirmed against sba.gov/funding-programs/loans/7a-loans on Jul 24, 2026. Confirm current fees and maximum rates with your lender before relying on them.

SBA 504 loan: program overview

Maximum loan
$5.5 million per the SBA-backed debenture (sba.gov, fetched 2026-07-24). Total project size can be larger because a bank funds the first mortgage alongside it.
What it funds
Major fixed assets: owner-occupied commercial real estate and long-life machinery and equipment. Not working capital or inventory.
Structure
A conventional first-mortgage lender, a Certified Development Company holding the SBA-backed second, and a borrower down payment.
Rate
The CDC portion is fixed for the full term and set at the monthly debenture sale.

Compare SBA loan programs · SBA 504 Loans

Program facts confirmed against sba.gov/funding-programs/loans/504-loans on Jul 24, 2026.

SBA Express: program overview

What it is
A delivery method inside the 7(a) program. The lender uses its own forms and procedures and gets an accelerated SBA response, in exchange for a lower SBA guarantee percentage than Standard 7(a).
What it funds
The same uses as 7(a), including revolving lines of credit, which Standard 7(a) term loans do not offer.
Trade-off
Faster turnaround and lighter paperwork, against a smaller guaranteed portion, which some lenders price for.

Compare SBA loan programs · SBA Express Loans · Types of 7(a) loans on sba.gov

Current SBA Express maximum loan size and guarantee percentage are set by SBA notice and change. Confirm them on sba.gov or with your lender; this site does not publish an unverified figure.

Small business loans available in Paterson

An SBA 7(a) loan made to a Paterson, New Jersey business is made by a participating lender, not by the SBA. The lender underwrites it, sets the rate within the SBA maximum, and services it. What varies locally is which lenders are active, not the program rules.

Common uses here are the same as everywhere: working capital, equipment, owner-occupied commercial real estate, refinancing business debt, and buying an existing business.

Insurance and closing

Most SBA lenders require hazard and, where the collateral is real property, property insurance in place before closing. See commercial property insurance for businesses and ways to ensure your SBA loan closes smoothly.

Getting started in Paterson

Check the eligibility requirements, run the numbers with the SBA 7(a) loan calculator, then get financing and we will route your inquiry to lending partners.

Getting a small business loan should be easy. Now it is.

Tell us about your business for a free, no obligation quote and to learn more about your loan options.

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