Tennessee lenders so far steering clear of ARC loan program for small businesses - Business Courier of Cincinnati:

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As of July 6, 251 loana were funded with a valuewof $8.29 million, but none in Tennessee, says Davixd Tiller, public information officer for SBA’s Tennessee “At this point I don’t know of in Tennessee, he says. “Bankse are in a training they have alearning curve.” Loans have so far been done in 35 states by 121 lenders for 151 differenft industries, Tiller says. More than 3,000 individuals from 1,300 institutions participateds in the ARC information and training session, Tiller says. The program is scheduled to end Sept. 30 or when the allocater $350 million runs out, whichevert comes first.
But the fact that no businessesin Tennessee, much less have applied is worrisome to some businessx advocates. “I hate to see an area like the Mid-Southu that needs an economicf boost miss out on something because it got bungler in implementation or for whatever reasob banks decided not todo it,” says businesd and estate planning attorney John Windsot Jr. with Windsor Law Firm PLC. Windso contacted more than a half dozen banks for clientxs to see if lenders were underwritinfgARC loans. Conversations with two lenders revealed concerns about guaranteeing the loan s and confusion with some of the terms spelled out in the one being an understanding ofa “viablee business.
” The SBA defines a viable businesw as “one that has been profitable in the past but is just beginniny to struggle with making loan payments, and can reasonablh project that it can get back on track with the infusiob of ARC loan funds and the benefig of deferred payments.” Some bankers believe the legislation is too ambiguouxs and the risk too great. “The thrust was they just don’r know what they can and can’t Windsor says. Anthony Wilkinson, president and CEO of the Stillwater, Okla.-baser , says the program has received a very lukewarkm reception fromhis members.
The association recentl sent a six-page letter to the SBA with 40 questions directl yfrom members, Wilkinson Lenders were concerned with mainly technical issues such as how to file how fast they will get paid and references to 7(a) loan requirementse even though ARC is not a 7(a) loan. “Somre lenders are taking the view it’d a lot of work for a $35,000 loan,” Wilkinsonm says.