June 30, 2009
SBA ARC Loans Projected to Reach 50.1% of the Allocation (10,000 Loans)
ARC Loans Made (through 6/29/09)
Number of Loans Funded: 139
Total Dollars: $4.639 million
Number of Lenders: 72
Loans were made in 28 states to businesses in 94 different industries
Estimated 5,016 loans to be made made total
(12.6 loans per day through September 30, 2010)
The ARC loan program has gotten off to a sluggish start. In the first
11 days an average of 12.6 loans have been made per day nationwide. For the
program to process the 10,000 loans that were allocated through September 30,
2010, lenders need to be doubling that and make 25 per day.
The majority of comments
Here is a comment posted on June 16th:
"SBA could rework the program to a viable alternative by removing some of the restrictions on eligibility and use of funds (whole sectors of the economy-notably retail and franchise will have difficulty qualifying) and closely defining the remaining items greatly simplifying the required process to reduce cost offering it as a 90% guaranty with guaranty adjustments restricted to gross misfeasance (i.e..e. disbursing against your own loan and foreclosing 60 days later, making one to an associate of the lender) very narrowly defining preference issues for this program and allowing full delegation on everything else (including compromise settlements not involving a going business. For now I doubt if we will do any - maybe on one or two troubled accounts."
Many lenders have expressed that the maximum loan amount is simply too small.
Ultimately the program has not met a warm welcome from small business lenders.