Salons carry more weight in New Jersey's SBA lending than in the country as a whole. The location quotient is 1.23x, salons rank 6 of 39 among New Jersey classes, and New Jersey stands 8 of 54 among states with 355 salon loans for $69.9 million approved from FY2017 to FY2026. Concentration and small ticket size define the cell, not an outlier rate.

Very small loans, almost all 7(a)

The median New Jersey salon loan is $75,000, which is 0.75x what salons borrow at the median nationally, and the middle band of loans spans $25,000 to $237,750. Of the 355 loans, 352 were 7(a) and 3 were 504, which means real estate is almost never part of the deal. Franchise borrowers are 18.6% of the count, a meaningful share for a class dominated by independent owners. TD Bank, National Association holds 100 loans for just $4.7 million, and Manufacturers and Traders Trust Company 45 loans for $4.0 million; PNC Bank, National Association (17), Northeast Bank (15) and Wells Fargo Bank National Association (11) follow. Bergen (55 loans) and Essex (48) lead the counties, with Monmouth (28) and Burlington (26) behind.

Cancellation and charge-off in New Jersey

Of FY2017 to FY2024 approvals, 13.4% were cancelled after approval, and 15.2% if loans still not disbursed are counted. On losses, 7.6% of the 131 loans funded across FY2017 to FY2021 have since been charged off, and 4.6% before their fifth year was out. Volume has been uneven: 51 approvals in FY2018, a low of 16 in FY2020, then 54 in both FY2024 and FY2025 and 32 in FY2026.

The questions a New Jersey salon study answers

For a borrower, the record says a lender will expect a lean project: a loan near $75,000 for equipment, fixtures and opening capital in leased space. A study has to show demand at the address against the salons already nearby. Cost needs a firm build out budget and a realistic opening reserve. The coverage ratio needs testing on a slower ramp for an independent than for a franchise unit, and the study should say which this is. With almost no 504 activity, the appraisal will usually address equipment and leasehold value, so the credit stands on cash flow and the owner's guarantee.

The salon class has no special limitation note; its industry is the code each borrower gave SBA, and each rate printed is a cohort floor.

SBA 7(a) and 504 beauty salon loans in New Jersey

Loans approved, FY2017 to FY2026	355
Gross dollars approved	$69.9 million
Median loan	$75,000
Middle half of loans, from	$25,000
Middle half of loans, to	$237,750
SBA 7(a) loans	352
SBA 504 loans	3
Franchise share of loans	18.6%
Rank among states for beauty salon loans	8 of 54
Rank of beauty salon among classes in New Jersey	6 of 39
Location quotient (share of loans against the national share)	1.23x
Median loan against the national median for the class	0.75x

Cancellation and charge-off

Cancelled after approval, FY2017 to FY2024 approvals (a floor)	13.4%
The same, counting loans still undisbursed as cancelled (a ceiling)	15.2%
Charged off to date, FY2017 to FY2021 disbursed loans (a floor)	7.6%
Charged off within five years of approval	4.6%
Loans in that cohort	131

Both rates are floors. SBA withholds the status of open loans, so a loan counts as charged off only once SBA reports it; a rate needs at least 30 loans in its cohort and is otherwise not reported.

SBA 7(a) and 504 beauty salon loans approved in New Jersey, by fiscal year

Fiscal year	Loans	Dollars
FY2017	39	$8.4 million
FY2018	51	$7.6 million
FY2019	26	$8.7 million
FY2020	16	$3.4 million
FY2021	20	$3.9 million
FY2022	21	$2.5 million
FY2023	42	$4.5 million
FY2024	54	$11.0 million
FY2025	54	$11.7 million
FY2026	32	$8.2 million

Most active SBA lenders

SBA 7(a): lenders by loans approved (the current holder of each loan, as SBA reports it)
Lender	Loans	Dollars
TD Bank, National Association	100	$4.7 million
Manufacturers and Traders Trust Company	45	$4.0 million
PNC Bank, National Association	17	$1.8 million
Northeast Bank	15	$1.8 million
Wells Fargo Bank National Association	11	$1.9 million

Where the loans are, by county

County	Loans
BERGEN	55
ESSEX	48
MONMOUTH	28
BURLINGTON	26
SOMERSET	24
MORRIS	22
CAMDEN	21
OCEAN	21
MIDDLESEX	19
UNION	18

Source: U.S. Small Business Administration, 7(a) and 504 loan-level FOIA files (data.sba.gov), as of 2026-09-30; Loan Analytics loan-outcome cell SA-NJ-C38.

Related feasibility study pages

Loan Analytics prepares the feasibility study a lender reads before it commits: for a beauty salon project in New Jersey, financed under SBA 7(a), SBA 504, USDA Business and Industry or a conventional bank loan. Tell us the project and the lender's deadline, and we reply with scope, timeline and fee.

Daniel Smith, MAI

Beauty Salon Feasibility Study in New Jersey