The Small Business Administration and banks aren’t seeing eye to eye on America’s Recovery Capital loan. SBA created the ARC loan this year with stimulus funds to provide financial assistance of up to $35,000 to small businesses that need to pay existing loans or debt.
The Small Business Administration saw success in the loan program because it is interest free, there are no fees for the borrower and it is 100 percent guaranteed by the SBA.
Many banks, however, say the loan is too risky because it targets borrowers who are likely to default and underwriting guidelines must be free of error or the SBA will revoke its 100 percent guarantee.
Two local business owners talk about their problems in getting the loan in today’s Bradenton Herald. Let us know what your experiences in trying to obtain a loan for your business have been.
Wednesday, August 12, 2009
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