SBA says loan program growing

Although there have been news reports about applicants being unsuccessful in getting Small Business Administration’s Recovery Act program loans, the number of participating lenders and loans is rising, according to a program representative.

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It is possible to get up to $35,000 under the SBA’s America’s Recovery Capital Loan Program. This loan is granted to help small businesses facing immediate financial hardship. It is said that some SBA lenders will offer ARC loans as long as funding is available or until Sept. 30, 2010, whichever comes first.

According to a SBA spokesman, Michael Stamler, the SBA has approved $52 million of the $336 million available in the program’s first nine weeks. So far, 520 lenders have made ARC loans, and the number is growing every week.

Lender gets a 100% guarantee

The SBA gives a 100 percent guaranty to the lender and requires no fees. The proceeds of the loan are provided over a six-month period and repayment of the principal is deferred for 12 months after the last disbursement of proceeds. Repayment can extend up to five years.

Applicants have reported trouble obtaining a loan in the trucking community

There have been reports of trouble while obtaining a loan or finding a participating lender, in the trucking community and outside the industry.

Small businesses in 399 industries in 48 states have been approved for ARC loans

Stamler said that there is no way of knowing whether any owner-operators have been turned away by lenders because they weren’t customers of that lender. Although, it would not be surprising, as many lenders have this policy. And although the loans are guaranteed by SBA, all ARC loans are made by commercial lenders.

SBA requires the Data Universal Numbering System number to process applications

A Data Universal Numbering System number is required by the SBA in order to process applications for this program. This is a 9-digit identification number provided free by Dun & Bradstreet, which is used to obtain the credit score required for loan processing.

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