Why is SBA making it so hard for banks to make an ARC loan?
by chuckblakeman, Window Shopper
- Created: March 23, 2010, 5:51 pm
You are requiring the identical paperwork you want for a $5 million 7(a) loan. Every bank I've talked to made it very clear that the $35k ARC loan simply isn't worth the paperwork you require, and if they get one piece of it wrong, they are no longer covered by the SBA for that loan.
And if you think the paperwork is not too burdensome (you're the only one that would think that), why don't you tell the banks to loan the money anyway? You're telling them what their salaries can be - you can tell them to loan money you gave to them when they would not have qualified for the ARC loan themselves.
You told the banks you expect a 56% default rate. If you really think it could be that bad than you don't need ANY paperwork. I could walk up and down a strip mall handing out $35k in case to business owners on the strength of a one page promissory note and get a better than 4 out of 10 payback - with business owners I've never met.
All of this of course doesn't address the fact that small business has received almost nothing compared to the bailouts for big business and big government.
Where is the support for small business?
- Community Home
- Discussion Boards
- Tell Us...
- Discuss Popular Topics
- Developer Resources
- Social Media