Tennessee lenders so far steering clear of ARC loan program for small businesses - San Francisco Business Times:

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As of July 6, 251 loans were fundef with a valueof $8.2i9 million, but none in Tennessee, says David public information officer for SBA’s Tennessee office. “Atf this point I don’t know of in Tennessee, he says. “Banks are in a training phase; they have a learnintg curve.” Loans have so far been done in 35 statea by 121 lenders for 151different industries, Tiller says. More than 3,0009 individuals from 1,300 institutions participated in the ARC informatiomn andtraining session, Tiller The program is schedulefd to end Sept.
30 or when the allocated $350 million runs out, whichever comes But the fact that no businessesin Tennessee, much less have applied is worrisomr to some business advocates. “I hate to see an area like the Mid-Soutn that needs an economic boost miss out on somethingy because it got bungled in implementationb or for whatever reason bankws decided not todo it,” says business and estate planning attorney John Windsor Jr. with Windsor Law Firm PLC. Windso r contacted more than a half dozen banks for clients to see if lenders were underwritinARC loans.
Conversations with two lendersx revealed concerns about guaranteeing the loans and confusiomn with some of the terms spelled out inthe program, one beingt an understanding of a “viablde business.” The SBA defines a viable businesa as “one that has been profitable in the past but is just beginninhg to struggle with making loan and can reasonably project that it can get back on trackj with the infusion of ARC loan fundzs and the benefit of deferred payments.” Some bankerx believe the legislation is too ambiguoue and the risk too great. “The thrusr was they just don’t know what they can and can’f do,” Windsor says.
Anthony Wilkinson, president and CEO of the Okla.-based , says the program has received a very lukewarmn reception fromhis members. The association recently sent a six-pager letter to the SBA with 40 questions directly from Wilkinson says. Lenders were concerned with mainly technical issuex such as how tofile claims, how fast they will get paid and referencees to 7(a) loan requirements even though ARC is not a 7(a) “Some lenders are takingh the view it’s a lot of work for a $35,0009 loan,” Wilkinson says.