SBA ARC Loans – You Can’t Make This Stuff Up
May 19th, 2009 - 3 CommentsI guess I will never cease to be amazed by the people in Washington. Hopefully, at some point, someone with 1/2 a brain and who has read the Bill of Rights will take the bull by the horns out there. Anyway, I was just reading about the new SBA ARC loans. Essentially, the Small Business Administration is going to make loans for people who have SBA loans, that can’t make the payments on their existing SBA loans. That sounds like an awesome idea. Did they not see what happened with Chrysler and GM? Is it not okay to let our “free market” economy work as it is supposed to? Do the people in Washington think they are really smarter than everyone else in the world? What a bunch of jokers. Check please
Your not quite right – they can’t use this loan to pay existing SBA loans unless they were made after Feb of this year. The idea is a stimulus – we have millions of small businesses across this country that are struggling because of the economy – losing employees due to layoff’s, loss of sales, higher costs of doing business, etc. and this has them strapped. The money they spent two years ago to purchase more inventory, capital assets or other uses to further the business are now going to just keep the lights on. Do you understand that the lifeblood of every small community and neighborhood in our country is fueled by small businesses? Not GM and Chrysler….and so this program is a stimulus – $35,000 to most small businesses is a huge cushion and the structure of these loans defers payments for over a year while the SBA pays the lenders interest. The money is intended to get them through this recession and provide some breathing room. Yes, there will be higher losses with this program than normal SBA loans but that is a risk we have to take – if we don’t free up the access to capital somehow, more and more small businesses will fail and that is something we all can’t afford. Do some more research next time and actually understand the need and the reason before you give your biased knee jerk opinion…
John, thanks for sharing your opinion, next time try not to insult me on my own site.
I am pretty confident I have a good handle on how things work. As someone who majored in economics, worked in the private money world in the past few years and borrowed over 40MM in the past year…I am pretty sure I understand how things work and are working. But, that is not the point here. The point is that the SBA doesn’t operate with its own money, it operates with taxpayer money. I think if most people saw how easy it was to get an SBA guaranteed loan, they would write their congressman and try and put an end to the program. I am not for handing out other people’s money. Maybe you are. Happy Father’s Day.
Actually these loans are backed by the SBA but given by individual banks and they do have to be paid back. Believe me, these are not easy to come by and even harder to get. Banks have clamped down on their requirements for loans. At present, after 32 years in business I can’t even get a credit card. I need this loan desperately and I probably won’t even get it. Yet the banks got direct taxpayer money for their bailouts.