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Small business loans in Passaic County, NJ: Paterson and beyond

Passaic County businesses received 374 SBA 7(a) and 504 loans worth $135.0 million from October 2023 to June 30, 2026, at a median of $150,000, and Paterson borrowers took the most, 83 [1].

By Business Funders editorial teamUpdated Oct 20, 2026
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Worried lenders pass over Paterson?

The SBA's own loan records say otherwise. Paterson borrowers took 83 SBA loans worth $30.9 million from FY2024 through June 2026, the most of any Passaic County town, edging out Clifton's 80 [1].

A Paterson address is not a mark against you. What a lender will look at is your revenue, your time in business and your credit, and the free counselors at the William Paterson University small business center keep an office on Ellison Street in Paterson to help you get those in order [8].

Passaic County SBA lending by fiscal year

SBA 7(a) and 504 loans with a Passaic County project, FY2024 to June 30, 2026 [1]
Fiscal year7(a) loans7(a) dollars504 loans504 dollars
FY2024128$41.4 million4$10.3 million
FY2025158$47.8 million4$6.2 million
FY2026 to June 3075$25.0 million5$4.3 million
Total361$114.2 million13$20.8 million

FY2026 covers October 2025 to June 2026 only. Source: SBA FOIA loan-level files as of June 30, 2026.

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Is it a fit for you?

It fits when

  • A Paterson or Passaic grocery, wholesaler or food maker that wants an SBA loan for stock, equipment or a building
  • A certified UEZ business in Paterson or Passaic that wants to keep the reduced sales tax edge while it grows
  • A Clifton or Wayne medical office or trucking firm with two or more years of revenue
  • An owner who wants free help in Paterson before talking to a bank

Look elsewhere when

  • You need a county grant; we found no Passaic County grant program on Oct 20, 2026
  • You need the money in days; SBA loans usually take weeks to close
  • Your business is under a year old with little revenue; start with the SBDC or a microloan

Paterson: 2,611 businesses, 83 SBA loans and a UEZ

ZIP codes with a Paterson mailing address held 2,611 business establishments and 30,123 employees in 2023 [2]. Paterson borrowers took 83 SBA loans worth $30.9 million from FY2024 to June 2026, at a median of $120,000 [1]. Volume rose from 27 loans in FY2024 to 37 in FY2025, with 19 more in the first nine months of FY2026 [1].

Paterson's SBA borrowers look like the city's industrial and street-level economy: snack food makers (5 loans), grocery wholesalers (4), auto glass shops (4), auto repair (3), special needs transportation (3) and dry cleaners (3) [1]. TD Bank made 25 of the Paterson loans, M&T Bank 10, Newtek Bank 8 and Wells Fargo 7 [1].

Paterson is an Urban Enterprise Zone. The local UEZ office is at 131 Ellison Street, (973) 321-1565 [5][9]. A business holding a UEZ certificate may collect sales tax at 3.3125% instead of the full rate on most sales of goods made at its zone location [6]. Paterson also holds 8 of the county's 15 Opportunity Zone census tracts from 2018 [7].

Worked example: $120,000 SBA 7(a) loan for a Paterson business

For variable-rate 7(a) loans of $50,001 to $250,000, the SBA caps the rate at the base rate plus 6.0% [3]. Prime was 7.00% on the Federal Reserve's Oct 20, 2026 release [4], so the cap is 13.0%.

At that cap, $120,000 over 10 years is $1,791.73 a month and $95,007.47 in total interest. A lender may quote you less than the cap. Guaranty and closing fees are extra.

Clifton, Wayne and Passaic city

Passaic County towns with the most SBA borrowers, FY2024 to June 30, 2026 [1], with 2023 establishments by postal city [2]
TownSBA loansSBA dollarsMedian loanEstablishments
Paterson83$30.9 million$120,0002,611
Clifton80$33.5 million$137,5002,522
Wayne54$24.2 million$178,3502,076
Passaic46$12.3 million$150,0001,371

Clifton took the most SBA dollars in the county, led by physician offices (4 loans), long-haul trucking (4), landscapers, restaurants, beauty salons and caterers (3 each); M&T Bank was its busiest lender with 14 loans [1]. Wayne's borrowers skewed to dentists and limited-service restaurants (4 each) [1].

Passaic city is the county's second UEZ town, run from City Hall at 330 Passaic Street, Room 206 [5]. Its SBA borrowing slowed: 21 loans in FY2024, 19 in FY2025 and 6 in the first nine months of FY2026 [1]. Supermarkets and grocery stores were its most common borrower type (4 loans) [1]. Passaic city holds 4 Opportunity Zone tracts, Clifton 2 and Prospect Park 1 [7].

What Passaic County businesses borrow for

Passaic had 12,406 establishments and 146,956 employees in 2023, and 10,868 of those locations had fewer than 20 people [2]. Retail is the largest group at 1,840 locations, 14.8% of the county, followed by construction (1,318) and outpatient health care (1,162) [2]. There were also 496 food and beverage stores, 291 of them grocery and convenience stores [2].

Construction firms took the most SBA loans here (45, $12.5 million), but health care took far more money per loan: 34 loans worth $25.9 million at a median of $200,000, with physician offices at a median of $350,000 [1]. Nail salons were the single most common borrower type, 9 loans at a median of $50,000 [1].

Who lends in Passaic County

Top SBA 7(a) lenders on Passaic County projects, FY2024 to June 30, 2026 [1]
LenderLoansMedian loan
TD Bank85$70,000
M&T Bank59$50,000
Northeast Bank37$150,000
JPMorgan Chase Bank23$150,000
Newtek Bank21$150,000
ReadyCap Lending14$312,000

M&T Bank's 59 loans make it a much bigger player here than in most New Jersey counties [1]. For property and large equipment, Trenton Business Assistance Corporation handled 11 of the county's 13 SBA 504 loans, worth $18.6 million at a median of $1,016,000 [1].

Card processing for Passaic County businesses

Passaic County leans on corner trade. Of its 496 food and beverage stores, 291 are grocery and convenience stores, and 208 of those had fewer than 5 employees in 2023 [2]. A bodega in Paterson or Passaic lives on small baskets, so the fixed part of each card fee matters more than the percent.

Take a $30 grocery basket. Square's in-person rate of 2.6% + 15¢ [12] costs 93¢, about 3.1%. If the shopper pays with a debit card from a large bank, federal rules cap that bank's interchange at 21¢ plus 0.05% of the sale [11], about 22.5¢, which is why debit-heavy stores often save on interchange-plus pricing.

Thinking of a card surcharge? New Jersey law, P.L.2023, c.146, says the surcharge can be no more than your actual cost to process the credit card [10]. Learn the fee parts on our credit card processing fees guide, then put your own statement through the fee analyzer.

Free help and faster options in Passaic County

  • NJSBDC at William Paterson University serves Passaic and Union counties from 1600 Valley Road in Wayne, with an affiliate office at 131 Ellison Street in Paterson [8].
  • The Paterson UEZ office at the same Ellison Street building handles UEZ certification for Paterson businesses [9].
  • Passaic city's UEZ is run by the Enterprise Zone Development Corp. at City Hall [5].

If an SBA loan is too slow, a term loan or line of credit can close faster at a higher rate, and trucks or kitchen gear fit equipment financing. A merchant cash advance is a purchase of future receivables, not a loan, and usually the costliest route. Batch Capital lays them side by side after the quiz.

See what fits your Passaic County business

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How we wrote this

Written by the Business Funders editorial team and checked against the sources below on Oct 20, 2026. General information, not an offer or legal advice. Found an error? Tell us.