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ARC Loans recommended in October 2009 REALTOR Magazine: Are they the Realtors version of the Cash For Clunkers program?

By
Real Estate Broker/Owner with HerzikFineProperties.com

 

In October, 2009, I decided to catch up on my realtor's periodicals.  I picked up the October, 2009, issue of REALTOR magazine (see Page 10) where I read that NAR analysts identified 3 types of SBA loans that are applicable to sales associates. This article mentioned that the President of NAR, Charles McMillan had sought clarification from the SBA as to whether real estate practioners and brokers were eligible for the new federally backed loans.  The SBA (Small Business Administration) responded that real estate practioners were eligible to apply for a new no-interest, no-fee, deferred payment short term loan called ARC--an acronym for America's Recovery Capital.

I thought to myself boy this is a great opportunity during this slow market.  So, I called my bank and they agreed to investigate and contact the SBA about handling this loan.  The bank got the approval to go ahead and they handed me an application that required about 4 days of my time to gather all the details required to apply. 

I handed a package of financial info to my bank which they approved and then they  begain the process of working with the Small Business Administration.  After 2/3 weeks of no calls  being returned by the SBA my bank simply threw up their hands and suggested other alternatives for me.

I remember the frustration expressed by automobile dealers with the Cash for Clunkers program.

Has anyone else tried to get an ARC loan

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