SBA Loans Moving Slow

In May we wrote a post announcing the Small Business Administration’s America Recovery Capital Loan Program. This program was supposed to provide up to $35,000 in relief for small businesses facing immediate financial hardship. Unfortunately, it seems that these loans are not moving as fast as one had hoped. The New York Times just published an informative article going over all the details on why the SBA loans are moving slow, below is an excerpt:

Small-business owners hoping for some assistance of the sort given to the nation’s biggest banks applauded when the Small Business Administration unveiled a lending program in May.

Washington officials and some lenders predicted that the program, providing emergency bridge loans as part of the economic stimulus package, would save jobs and provide a lifeline for vulnerable businesses. Many in the banking industry expected it to be fully subscribed in months.

But the program is off to a slow start, and many banks, including some of the largest, appear reluctant to take part.

Read the full article here: http://www.nytimes.com/2009/08/13/business/smallbusiness/13small.html?_r=1&partner=rss&emc=rss