Need a SBA ARC Loan? Here's a List of Bank's That are Making Them!
The Small Business Administration's ARC Loan Program is off to a slow start. Basically, the problem is that banks don't want to add to their already troubled loan portfolio by lending to yet another troubled business, even though the SBA is guaranteeing the loans. Troubled businesses are exactly who ARC Loans target. As a result, bank response to the program has been slow.
Very few of the large banks have jumped on the bandwagon. Most banks that have made ARC loans are small to medium-sized local or regional community banks. If you are seeking an ARC loan, check out this list of lenders in each state. These banks have already made ARC loans. This list is updated weekly.
Banking for small businesses is all about relationships. If your bank is not supporting the ARC program, it is not supporting your business. Change banks! Change to one of these banks willing to support small business -- the backbone of our economy! Move your business account and apply for an ARC loan if you need one. Banks are very competitive with each other these days. Chances are, your new bank will serve you as well or better than the one who won't give you the ARC loan in the first place! Good luck!
The SBA ARC Loan program continues to be problematic for many struggling small businesses as this program has evolved in unexpected ways compared to what was touted when it was launched. The loan amount is too small to help many businesses (Ask Congress why they thought this would be enough). The amount of documentation is nearly the same as is needed for a $1million loan. And the biggest issue that borrowers are facing is finding a lender who will loan to them, which is based on the type of qualifying debt that applicant has. So even if a business is qualified, it is far from automatic that they get a loan. As the article intimates, banks are wary and the debt they “prefer” are the term loans, notes and capital equipment leases, because the borrower can’t draw back on them once the ARC Loan pays off that debt.
My company, Business Borrowers Alliance, is continuing to contact the banks that have been named as participants to learn what their specific requirements are and most continue to only want to do ARC Loans for only their customers that specifically have loans at their bank.
For more information, contact us at 866-944-3866 or mail@businessborrowersalliance.org
Neal Gordon
http://www.businessborrowersalliance.org
We provide direct assistance and help to businesses throughout the complete ARC Loan application process.
I have been frustrated by the bank’s response to the ARC Loan program. I spent four full days preparing the application and shopped it to my current bank and the only other bank in the area considering these loans. I had numerous conversations with The SBA both locally & nationally to confirm that what I was requesting was within the eligibility requirements. I was told that my business was the perfect candidate.
I have been sorely disappointed and rejected by both banks. One didn’t want to take on debt that was clearly defined as eligible and the other didn’t believe in my business (20 plus years and going). It appears to me that the banks won’t lend to businesses distressed but will lend to those not really requiring the ARC Loan program, (could borrow normally). Certainly not the intent of the program as conceived. When I reported to the SBA my experience they expressed disappointment and confirmed they have received numerous complaints from applicants. So where’s the help now??
The handling of this SBA ARC program and the Obama Administration and Democratic Party policy on small business lending policy in general, thus far, may likely be their single largest public policy blunder to date.
The antipathy created by public pronouncements, those lauding support for small businesses, as the key to job creation and then to go stiff small business while using public monies to pay large executive bonuses for publicly bailed-out multinational financial institutions is a guarenteed way to be voted out of your office.
It’s axiomatic. If you are running for office, don’t tick off the guy who makes the campaign signs.
I have tried to no avail to get this extra special loan. My bank who I had been with for years,(the greedy bank of America) won’t do them. And any other bank won’t do them unless the dept is with them. So this is just another stimulous that does not reach the people who need it. Needless to say bank of America will not see any more of my money.
Talked to Wachovia yesterday and their policy is to loan only to those that they hold the mortgage on. Then they would only pay the mortage for six months up to a max of $5,000. I asked, if my mortgage is $1,100 a month, then six months was $6,600 and would they go to that amount? They said no, max of $5,000.
Talked to Regions this morning. They will go a max of $35,000 on paying a mortgage that they hold but nothing on overdue lines of credit.
Ken: Thanks for reporting on this. It’s good information for others to know. Sorry that you’re having such a problem.
Rosemary
Talked to Wells Fargo today. They offer the program but they do not really want to provide the loan. They said if they do the loan all of the ARC Loan has to be used to pay a Wells Fargo credit loan that you already have with Wells. I thought they already had gotten enough with the Stimulus $ they received, now they want even more Stimulus $ by taking the ARC Loan.