Business Loans: How is the ARC Being Received and How Can I Get One?

ARC. America's Recovery Capital program. It’s the Obama Administration’s outreach to struggling small businesses and it’s dominating the financial headlines. But is it really helping? Let’s examine the latest updates on ARC business loans and how you can get one for your struggling small business.

The ARC is On, But Banks Aren’t Participating
At least not without careful scrutiny of the applying business, that is. According to CNNMoney Small Business, the 10,000 loan mark by 2010 should be met--but progress is slow and deliberate. Here is ARC business loans by the numbers:

• Participating Lenders. About 400 out of 8,200 FDIC-backed US banks
• Actual Lenders. Wells Fargo, PNC Financial and Zions Bank--3 out of 10 of the SBA’s most active lenders
• Default Forecast. The SBA figures around 56 percent
• The Offering. $35,000 in interest-free money

What’s Causing the Delays?
The Sacramento Bee offers several reasons why the ARC business loans program is slow to reach its full potential, outside of timid lenders. The acceptance guidelines are a primary affecter, as business must show at least two years of steady profit growth. Another problem is the issue of how lender guidelines mesh with the Federal government.

How to Get Yours
The New York Daily News offers this advice for small business owners interested in applying for ARC business loans in the near future.

1. Gather financial records, both professional and personal
2. Present a strategic business plan that covers all bases
3. Find the right loan and lender for the business

Owners are encouraged to look for loans that cater to their specific market as opposed to applying for blanket business loans. Niche lenders understand the particular challenges of the industry and can work with applicants in that regard.