Survey: Majority of Business Owners Not Aware of SBA Lending Program

A worrisome survey conducted by the George S. May International Company found awareness and usage of the Small Business Administration’s (SBA) America Recovery Capital (ARC) Loan program to be surprisingly low. The survey found 77% of respondents had not taken advantage of the deferred payment loans, and more than half (58%) were not even aware the loans were made available in September.

The survey points to the limited ability of businesses to hire outside guidance (82% said they couldn’t afford it) as a key contributing factor to low awareness rates. May International theorizes that, in the day-to-day course of keeping the business afloat, business owners do not feel they have time to regularly examine the updated loan programs available.

ARC loans are designed to provide immediate capital to small businesses to assist with existing debt payments. Qualifying loans include credit card debt for your business, capital leases, notes payable to vendors and suppliers, Development Company Loan Program (504) first lien loans, other loans to small businesses made without an SBA guaranty, and loans made by or with an SBA guaranty on or after February 17, 2009.

ARC loans can provide up to $35,000 to qualified small businesses facing immediate financial hardship. The loans are limited to one per business, are interest-free to the borrower, and are 100% guaranteed by the SBA to the lender. Loan proceeds are provided over a six-month period, and repayment of the principal is deferred for 12 months after the last disbursement. Repayment can extend up to five years.

Click here for the survey report
To learn more about the ARC loan program, visit the links to the SBA site below.

Related posts:

  1. SBA Readies Emergency Small Business Loans Under ARC Program
  2. New Survey Shows Optimism Increasing Among Small Business Owners
  3. Senate Committee Introduces Bill to Increase Small Business Lending

Published December 14th, 2009 at 12:54 pm in Credit and Loan Concerns, Small Business Administration Loans with 1 comments
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  • Jeff posted: 16 Dec at 8:24 pm

    For business owners there really is no excuse for them not to know all the details of small business loans. Most information is available on line at the SBA website, and even though it may be time consuming, it may save you a lot of money and aggravation on your business.