Loans for Business: Is the ARC Making It's Farewell Tour?

The government’s ARC loan program has helped businesses across the nation get loans for business start-up and expansion. But it hasn’t been without its hitches--and now it may be on the way out. Here’s a quick look at the ARC loan program in its swan song.

What is ARC? Why Haven’t I Heard of It Before?
The Small Business Administration’s America’s Recovery Capital Loan Program provides up to $35,000 in short-term relief for small businesses that face immediate financial hardship. The money is intended to help business through the current uncertain economic times and begin the process of returning to profitability. Funds are delivered over six months and repayment begins twelve months after the last disbursement.

What Issues Have Affected ARC’s Success?
While the loan strategy is built on a promising concept, business owner’s in the trenches say that the loans for business are coming too little, too late. CNNMoney.com staff reporter Catherine Clifford reveals that big banks have been reluctant to participate. According to the Small Business Administration:

• The ARC loan program has backed 2,715 loans
• The total business loan amount equals just over $88 million
• The average commercial loan size is $32,425

Is ARC Sailing Away?
According to Sam Thacker, partner in Austin Texas based Business Finance Solutions and AllBusiness columnist, time is running out on several of the temporary SBA commercial loans programs. Many are scheduled to be phased out by December 31. For business getting in on the tail-end of the program, that just might be too late.