Small Business ARC Loans vs Problematic Reality

A small business lending advisor states that since the inception of a special SBA loan program in June, there have been only 1,800 ARC loans approved by less than 600 lenders.

The Small Business Administration promised a faster pace of approval for ARC loans, which are loans of up to $35,000 to be made available to established and viable businesses suffering “immediate financial hardships.” Neal Gordon, principal of lending advisor Business Borrowers Alliance, clarifies what this means.  “Viable means that these franchises and small businesses have been profitable over the last couple of years,” declares Gordon.

“This is Cash for Clunkers program, but without the cash,” Gordon explains. He echoes some fof the other small business experts in stating that the program has been a huge disappointment. “This was a challenging program in the way Congress designed it in the first place. Congress mathematically calculated that in total there would be 10,000 – 11,000 loans. To date, there are only 1,800 approved ARC loans.”

Gordon says that franchisees who have acquired a hundred percent of their franchise from a franchisor or a former franchisee in the last year or two might be able to qualify for an ARC loan. “For businesses that meet the qualification rules, it can be very effective,” says Gordon. “It wasn’t designed for a majority of small business. The SBA was given a difficult program to begin with. That’s Congress, and the President signed the bill.”

“As we have been explaining the program to small business owners and helping clients through the application process, it has been painfully obvious that business owners have been unable to find accurate information about the program” stated Neal Gordon, a Partner with Business Borrowers Alliance.

“People have become frustrated trying to understand if they qualify for the loan and then locate a lender who will work with them. In addition, the SBA continues to update and evolve their procedures which impacts applications,” says Gordon.

Business Borrowers Alliance will offer its first two free webinars free of charge on qualifying for the ARC loan program and the realities of how the program has played out.

• Wednesday, September 9, 2009 @ 12 PM EST / 9 AM PST and repeated
• Thursday, September 10, 2009 @ 3 PM EST / 12 PM PST

”This webinar is aimed at shedding light on the program to help small businesses understand if they fit the program and the best way to apply,” says Gordon.

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To register for Wednesday 9/9 Webinar, go to https://www2.gotomeeting.com/register/264672267  
To register for Thursday 9/10 Webinar, go to https://www2.gotomeeting.com/register/803880331