Comments on: Update on the SBA ARC Loan Program

By: Mike Clough

Mike Clough — Mon, 07 Feb 2011 05:30:18 +0000

Anthony, this is not our business. Furthermore, the SBA does not make loans it only guarantees the loans made by banks. So you need to talk to your local bank and they will help you attain the loan.

By: Anthony Osei-Buapim

Anthony Osei-Buapim — Mon, 07 Feb 2011 03:44:02 +0000

I need SBA/GOV guarantee Capital LOAN to start up
my Export Business.

Kindly send me the necessary information and
application forms per below address;

AOB INTERNATIONAL,
513 COMMONWEALTH AVE D11
BRONX, N.Y. 10473

ATTN; ANTHONY OSEI-BUAPIM

By: Mike Clough

Mike Clough — Wed, 19 Aug 2009 18:36:52 +0000

Although your first statement may be true, there is in fact, a published list of participating banks. If you review my article ”How Successful is the SBA ARC Loan Program?”, toward the bottom you will find a link to download the list. I trust you will find this useful.

By: scorevolunteer

scorevolunteer — Wed, 19 Aug 2009 18:22:03 +0000

I’ve learned that in NH, few banks are offering the ARC loans because the paperwork for a $35K loan isn’t worth the bank’s time and effort. Also, the SBA is not tracking or publishing a list of Banks that are processing ARC loans.

By: Mike Clough

Mike Clough — Thu, 13 Aug 2009 01:18:32 +0000

Through conversations today with SCORE counselors in other parts of the country, I have learned a couple additional things:

1. Other geographic areas are slower getting off the start line due to the fact that it has taken longer for potential lenders to have their questions and concerns address by the SBA.

2. Other geographic areas have been financially impacted harder than Minnesota & Wisconsin and the restrictions on ARC loans are getting in the way of some small businesses securing these loans.

The restrictions of which I speak, is the requirement of the applicant to be a “struggling yet viable” business.

“Struggling” means the business must face an “immediate financial hardship,” meaning a 20 percent reduction in a critical operating number, such as revenue.

“Viable” means the applicant must also have shown positive cash flow, if not an actual profit, in one of the last two years. The applicant also must do a two-year cash-flow projection to show it can repay all its obligations.

Needless to say, these two requirements eliminate some of the applicants and other applicants that might otherwise qualify, find it to difficult to provide financial statements and projections.

Although the latter may be very true, it still does not justify the disparity between the top two states and the other states. I believe the biggest is more like to be the first issue and now the banks in the other states will soon catch up.

If I learn anything else, I will be sure to post here.