Not to burst anyone’s bubble, but this ARC thing is a joke. Like most things the government is doing these days, it’s mired in bureaucratic red tape and banks are having a difficult time disbursing these loans due to an insane amount of paperwork and BS.
I do volunteer work for SCORE, so I’m familiar with these loans, but I’m not an expert like an SBA rep. First of all, you have to be an existing business for more than two years, but they’ll favor longer than that. Second of all, you have to show through tax records that you were profitable the past 2 years, and not just a penny into the black, but actual profits. Being profitable the last 2 years is the only thing that makes sense in the program. The rest is just a quagmire that will more than likely result in government noose around your neck.
But honestly, if you can pull off getting your bank to do one of these loans for you, and it makes sense for you, then go for it. You’re paying for it with your taxes anyways.
This might seem like a harsh system, but why loan money to somebody in financial trouble? Statistically they might as well light the money on fire if they loan it to businesses in financial trouble.Yea it is a load of "newspeak". I read the SBA guidelines posted about a month ago and it is confusing because they seem to want you to be able to pay your bills while not being able to pay, etc. My daughter's drywall company really needs the help and she has been very actively pursuing, our local banks hadn't even heard of it and her e-mail today indicates their bank now knows of it but is seemingly confused as to what documents & procedures to request. I'm glad she has the tenacity to pursue it so that maybe I can learn whether or not my HVAC company can get some help. She is pretty good at interpreting mumbo-jumbo. If I can survive this winter I would rather not have to deal with this government "1984 newspeak" that is growing daily. I don't know why things can't be clearly stated other than to use the regulations to mean whatever the powers that be want them to, political party doesn't matter, just confuse the masses.
Lenders want to loan money to companies to help them expand not cover operating expenses.