Mixed Reviews for SBA ARC Loan Program
Posted in Closely Held Businesses and Business Start-Ups on January 14, 2010
A little over six months after its June 2009 debut, the SBA America’s Recovery Capital (“ARC”) Loan program continues to get mixed reviews. On a positive note, over 45% ($142 million) of available funds have been distributed by over 1,000 lenders to nearly 4,400 borrowers. On the downside, many other borrowers have found it difficult to qualify for these loans and to find participating lenders. Further, the future of the program has been cast in doubt after Senator Olympia Snowe, an original architect of the ARC Loan program, introduced a bill late in 2009 that would repeal the program.
Regardless, the program remains open until either the remaining funds are exhausted (over $100 million remains available under the program) or September 30, 2010, whichever comes first.