Tennessee lenders so far steering clear of ARC loan program for small businesses - South Florida Business Journal:

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As of July 6, 251 loansx were funded with a valueof $8.29 million, but none in says David Tiller, public informationb officer for SBA’s Tennessee “At this point I don’ty know of any” in Tennessee, he says. “Banks are in a trainingf phase; they have a learning curve.” Loans have so far been done in 35 statesz by 121 lenders for 151differenr industries, Tiller says. More than 3,000 individuald from 1,300 institutions participated in the ARC information andtraining session, Tiller says. The program is schedulesd to end Sept. 30 or when the allocatedc $350 million runs out, whichever comes first.
But the fact that no businessein Tennessee, much less Memphis, have applied is worrisomw to some business advocates. “I hate to see an area like the Mid-Soutgh that needs an economic boost miss out on something because it got bungledc in implementation or for whateverf reason banks decided not todo it,” says busines s and estate planning attorney John Windsor Jr. with Windsoer Law Firm PLC. Windsor contactedc more than a half dozejn banks for clients to see if lenderw were underwritingARC loans.
Conversations with two lenders revealed concerns about guaranteeing the loanas and confusion with some of the terms spelled out in the one being an understanding ofa “viable The SBA defines a viable business as “oned that has been profitable in the past but is just beginningg to struggle with making loan payments, and can reasonabl y project that it can get back on tracj with the infusion of ARC loan fundxs and the benefit of deferred payments.” Some bankers believe the legislation is too ambiguous and the risk too “The thrust was they just don’t know what they can and can’tg do,” Windsor says. Anthony Wilkinson, president and CEO of the Okla.
-based , says the program has receive d a very lukewarm reception fromhis members. The associationb recently senta six-page letter to the SBA with 40 questions directly from members, Wilkinson says. Lenders were concerned with mainly technica l issues such as how tofile claims, how fast they will get paid and reference to 7(a) loan requirements even though ARC is not a 7(a) “Some lenders are taking the view it’ds a lot of work for a $35,000 loan,” Wilkinson says.