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Article: SBA loan program encounters a snag: bank limitations; ARC funds so far slow moving, but could pick up as awareness rises.(NEWS)
- Article from:
- Crain's Cleveland Business
- Article date:
- September 28, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: ARIELLE KASS
A new loan program from the U.S. Small Business Administration is off to a slow start because banks are interested in lending only to existing customers, the district director of SBA in Cleveland said.
The America's Recovery Capital, or ARC, loan program provides interest-free loans of up to $35,000 to companies that are viable but need help paying off debts to stay that way. Supporters expected the money $255 million to run out well before the ARC loan program's scheduled end in fall 2010. But as of Aug. 31, fewer than 1,900 loans had been made nationwide since the program's start in June.
Gil Goldberg, the Cleveland SBA ...