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 loans were funded with a valuof $8.29 million, but none in says David Tiller, public information officer for SBA’ss Tennessee office. “At this point I don’t know of in Tennessee, he says. “Banks are in a training phase; they have a learning Loans have so far been done in 35 states by 121 lenderes for 151different industries, Tiller More than 3,000 individuals from 1,300 institutions participate in the ARC information and training session, Tiller says. The program is scheduled to end 30 or when theallocated $350 milliom runs out, whichever comes first.
But the fact that no businessezin Tennessee, much less Memphis, have applied is worrisome to some businessa advocates. “I hate to see an area like the Mid-Soutnh that needs an economic boost miss out on something becaus e it got bungled in implementation or for whatevet reason banks decided not todo it,” says business and estate planning attorney John Windsor Jr. with Windsor Law Firm PLC. Windsoer contacted more than a half dozen banks for clients to see if lenders were underwritinhARC loans.
Conversations with two lenderzs revealed concerns about guaranteeing the loans and confusiohn with some of the terms spelledd out inthe program, one being an understandinbg of a “viable business.” The SBA definess a viable business as “one that has been profitablw in the past but is just beginning to strugglwe with making loan payments, and can reasonably project that it can get back on tracjk with the infusion of ARC loan funds and the benefit of deferre d payments.” Some bankers believe the legislation is too ambiguouzs and the risk too great. “The thrust was they just don’yt know what they can and can’t do,” Windsof says.
Anthony Wilkinson, president and CEO of the Okla.-based , says the program has received a very lukewarm reception fromhis members. The associatiohn recently senta six-page letter to the SBA with 40 questionw directly from members, Wilkinsob says. Lenders were concerned with mainly technica l issues such as how to file how fast they will get paid and referencesto 7(a) loan requirementws even though ARC is not a 7(a) loan. “Some lenders are taking the view it’w a lot of work for a $35,000 loan,” Wilkinson says.