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A Small Bank Profits off ARC Loans and Performs a Great Service for Small Businesses

By February 13, 2010

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The American Recovery Capital Loan or ARC Loan has been problematic for banks and small businesses alike. It was developed to give quick relief to small businesses who couldn't get regular loans from banks during the recession. My readers have responded with their comments about their own experiences with trying to get an ARC loan.

A few days ago, The New York Times reported, in an article, on a small bank that has found a way to make these ARC loans available to small businesses and profitable for their bank. The fifth largest lender of ARC loans so far is a tiny bank in Mississippi - the Peoples Bank of Mississippi.

Even though lending through the ARC program has been difficult, Peoples Bank has persisted because they felt the need of their small businesses and felt that the program would build relationships with these businesses over time. The bank has truly performed a great service for small businesses in its area.

Why haven't other banks followed the example of Peoples Bank of Mississippi?

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