Since the SBA's America's Recovery Capital loan program debutedlast summer, First U.S. Community Credit Union has been floodedwith applications and the deluge has led to bigger loans for theSacramento, Calif.-based cooperative.
|Even so, the $231 million CU is treading cautiously having onlyfunded 13 loans to date, said Gordon Gerwig, business servicesmanager. Still, the $35,000 ARC loans have generated more businessfor the CU, which has a $750,000 loan in the pipeline to finance afirm's building.
|"We're happy we did them. They've done some good things and keptpeople from losing their businesses. We're probably among the onlyones in Northern California doing the loans."
|The down side is even though the ARC loans are small, it stilltakes as much work to process loans 10 times their size, Gerwigsaid. Ideally, he would have liked to see the loans go up to$100,000. One offset is the SBA pays the CU monthly interest checksfor participating in the program.
|According to the SBA, as of May 7, 1,243 lenders have made 7,416ARC loans amounting to $240 million. The program is authorizedthrough Sept. 30 or until the funds are exhausted, whicheverhappens first. Approximately $97 million in loan authority remainsavailable.
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