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Assessing the Bank Loan Offer
Operational Efficiency
Availability, Eligibility and the Application Process: SBA Loans Explained

Small Business' Taking Advantage of ARC Loans to Solve Cash Flow Problems
Manufacturing & Technology eJournal Identifies Regional Banks Participating in the SBA’s guaranteed ARC Loan Program

If your small business is stressed meeting expenses during these economic times, the U.S. Small Business Administration has a new loan program designed just for you.

SBA’s America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability.  Each small business is limited to one ARC loan.

The ARC loan program is a temporary program authorized by the Recovery Act. ARC loans will be offered by some SBA lenders for as long as funding is available or until September 30, 2010, whichever comes first.

  • ARC loans can be used to make payments of principal and interest, in full or in part, on one or more existing, qualifying small business loans for up to six months.
  • An ARC loan can provide an immediate infusion of capital to small businesses to assist with making payments of principal and interest on existing debt.  These loans allow borrowers to redirect cash flow from making loan payments to investing in their businesses, to help sustain the business and retain jobs. 
  • ARC loans are interest-free to the borrower, carry a 100 percent guaranty from the SBA to the lender, and require no fees paid to SBA.  Loan proceeds are provided over a six-month period and repayment of the ARC loan principal is deferred for 12 months after the last disbursement of the proceeds.  Repayment can extend up to five years.
  • The best candidates for ARC loans are small businesses that in the past were profitable but are currently struggling, yet have been making loan payments or are just beginning to miss loan payments due to financial hardship.
  • ARC loans are made by commercial lenders who are SBA participants. The SBA will pay these banks a monthly interest rate throughout the term of the loan.
  • ARC loans are available to viable, for-profit small businesses in the U.S. that have qualifying small business loans and are experiencing immediate financial hardship.  
  • Your small business must be an established business, have financial statements demonstrating it was profitable in one of the past two years, and be able to project sufficient cash flow to meet current and future loan payments over a two-year period from loan approval.  (If your business does not meet these criteria, you can discuss your eligibility with your lender).  ARC loans are not designed for start-up businesses. 



 

ARC loans are designed to help businesses experiencing immediate financial hardship for reasons such as:

  • Loss/reduction of customer base
  • Increase in cost of doing business
  • Loss/reduction of working capital and/or loss/reduction of short term credit  facilities
  • Inability to restructure existing debts due to credit restrictions
  • Loss/reduction of employees (intellectual capital)
  • Loss/reduction of major suppliers (major suppliers out of business)
  • Borrowers whose loans are already severely delinquent or whose past performance or future cash flow indicates that the business is not viable are not good candidates for an ARC loan.

(Participating Ohio Banks Average 3.77 ARC Loans Per Bank while Kentucky Averages 2.92, Michigan 2.37 and Indiana 2.28)

Banks in Your Area That HAVE Recently Provided ARC Loans

Since the Inception of ARC Loans 24 Kentucky Banks       
Have Participated in 70 Loans (Through October 26, 2009)  
               
Bank of Cadiz and Trust Company        
California Bank of Commerce          
Central Bank & Trust Co.          
Citizens Commerce National Bank        
Citizens Deposit Bank          
Citizens Union Bank of Shelbyville        
Community Trust Bank, Inc.          
Cumberland Valley National Bank & Trust Company      
Edmonton State Bank          
Farmers Bank & Capital Trust Company        
First Security Trust Bank, Inc.          
Integra Bank, National Association        
JPMorgan Chase Bank, National Association      
KeyBank National Association          
PBI Bank              
PNC Bank, National Association        
South Central Bank of Barren County, Inc        
South Central Bank of Hardin County, Inc.      
Stock Yards Bank & Trust Company        
Town & Country Bank and Trust Company      
Town Square Bank            
Traditional Bank, Inc.          
Whitaker Bank, Inc            
Wilson & Muir Bank & Trust Company        
               
Since the Inception of ARC Loans 44 Ohio Banks       
Have Participated in 166 Loans (Through October 26, 2009)
               
1st National Community Bank          
Advantage Bank            
CenterBank            
CFBank              
Commerce National Bank          
Day-Air CU Inc            
Farmers & Merchants Bank          
Farmers Bank & Savings Company        
First Federal Bank of the Midwest        
First Financial Bank, National Association      
First National Bank            
First National Bank of Pennsylvania        
FirstMerit Bank, N.A.          
Genoa Banking Company          
Heartland Bank            
JPMorgan Chase Bank, National Association      
KeyBank National Association          
LCNB National Bank            
Main Street Bank Corp.          
Minster Bank            
National City Bank            
North Side Bank & Trust Co.          
Ohio Legacy Bank, National Association        
Ohio University CU Inc          
Peoples Bank, National Association        
RiverHills Bank            
Superior FCU            
Sutton Bank            
Telhio CU Inc            
The Citizens Banking Company        
The Citizens Savings Bank          
The Commercial and Savings Bank of Millersburg, Ohio    
The Community Bank          
The Croghan Colonial Bank          
The Delaware County Bank and Trust Company      
The First Citizens National Bank of Upper Sandusky      
The Hocking Valley Bank          
The Huntington National Bank          
The National Bank and Trust Company        
The Park National Bank          
Wayne Savings Community Bank        
Western Reserve Bank          
Western State Bank            

Westfield Bank, FSB

Since the Inception of ARC Loans 32 Indiana Banks       
Have Participated in 73 Loans (Through October 26, 2009)
               
1st Source Bank            
Ameriana Bank            
Centier Bank            
Citizens Bank            
Community First Bank          
First American Bank            
First Harrison Bank            
First Merchants Bank of Central Indiana, National Association    
First Merchants Bank, National Association      
German American Bank, A Division of        
Heartland Community Bank          
Hibernia National Bank          
Horizon Bank, National Association        
Integra Bank, National Association        
JPMorgan Chase Bank, National Association      
Kentland Bank            
KeyBank National Association          
La Porte Savings Bank          
Lafayette Bank and Trust Company, National Association    
Lake City Bank            
MainSource Bank            
MutualBank            
Ossian State Bank            
Professional FCU            
SCB Bank              
Stock Yards Bank & Trust Company        
The Home National Bank of Thorntown        
The National Bank and Trust Company        
Three Rivers FCU            
Tower Bank & Trust Company          
Wells Fargo Bank, National Association        
Western State Bank            
               
Since the Inception of ARC Loans 27 Michigan Banks       
Have Participated in 64 Loans (Through October 26, 2009)
               
1st State Bank            
Baybank              
Central State Bank            
Charlevoix State Bank          
ChoiceOne Bank            
Citizens First Savings Bank          
Commercial Bank            
CoVantage CU            
Davison State Bank            
ELGA CU              
Fidelity Bank            
First National Bank of Crystal Falls        
Founders Bank & Trust          
Hillsdale County National Bank        
Horizon Bank, National Association        
Huron Community Bank          
Independent Bank            
JPMorgan Chase Bank, National Association      
Mercantile Bank of Michigan          
Monroe Bank & Trust          
New Liberty Bank            
Sturgis Bank & Trust Company          
The First National Bank of St. Ignace        
The Huntington National Bank          
The Peninsula Bank of Ishpeming        
Thumb National Bank & Trust Company        
West Michigan Community Bank        
               

 

         
 

 

 

           

U.S. Small Business Administration


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