BizSugar.com › Raising Capital › Bankers wary of small biz ARC loan program

The Small Business Administration plans to begin dispersing funds in mid-June for a new, highly anticipated emergency lending program, but don't race off to the bank to fill out an application just yet. Many lenders are still sitting on the sidelines, waiting for more details from the SBA before they decide whether or not to participate.

"What is the economic incentive for banks to make these loans?" asked Arne Monson, president of Holtmeyer & Monson, a consulting firm that works with small business lenders.