The secondary market for Small Business Administration loans has dried up over the past few weeks, and that has forced active SBA lenders such as Unity Bancorp Inc. in Clinton, N.J., to make some tough business decisions.

The $864 million-asset Unity which started an aggressive expansion of its SBA lending a year ago, said last week that it shut down eight SBA loan offices in seven states outside its market area, and laid off 10 of its 12 SBA lenders.

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