The Federal Reserve Bank of Richmond • MarketWise Community
president at BankAnnapolis, which participatedin the ARC program.
“AAEDC’s involvementwas in part a response when they learned thatmany businesses were being shut out o thisprogram,” he says.
Starting with about 55 interested businesses,10 businesses completed the applicationprocess and wereapproved or ARC loansranging in size rom$9,000 to $35,000 andaveraging $28,620.
In addition to moreavorable credit terms,Alexis Henderson, vicepresident o marketingand communications atAAEDC, explains that, “ARCloan applicants received assistance rom theSmall Business Development Center (SBDC)when preparing their ARC Loan applications.Ater receiving ARC loans, they are alsorequired to meet regularly, one-on-one withan SBDC counselor or additional advice andassistance.”
AAEDC borrower Laura Moore, o Laura MooreDesigns, ound that the ARC loan helped herto ree up cash fow to purchase inventory andpay or marketing eorts.
It allowed her tomove orward with the plans she had laid outor her business.
With more than 97 percento all county businesses being classiedas small businesses, Anne Arundel CountyExecutive John Leopold elt that it was vital todo something to address the challenges acedby their business community in this economy.
The AAEDC leveraged existing support rom itsconsortium o banks, the SBA and the SBDC toapprove 10 SBA guaranteed interest-ree loansthrough the ARC Loan program.
The AAEDCcontinues to operate its small business lendingactivities, which involve SBA guarantees andloans up to $300,000, regularly reviewing itslending activities and modiying those eortsi necessary. The goal is to provide access tocapital or small businesses in Anne ArundelCounty and to increase the AAEDC’s lending,while managing the portolio to minimizeadditional risks.
Mountain BizWorks, acertied communitydevelopment nancialinstitution based inAsheville, North Carolina,oers a variety o fexiblegap nancing productsto small businesses andentrepreneurs in westernNorth Carolina. In 2009, Mountain BizWorksapproved approximately 50 loans worth a totalo $795,000 or small business owners andentrepreneurs.
The average loan is $15,000.While Mountain BizWorks is partially unded bythe SBA, it is not classied as a SBA 504 lender.Its loan pools are disbursed in the orm o grants and private loans.Originally a microlender, Mountain BizWorkshas expanded its lending to a wide rangeo small business sizes and types. WesternNorth Carolina has experienced an increasein the number o entrepreneurs in the regionand thus a corresponding increase in thedemand or small-business training, coachingand loan capital. This created a need orgrowth and expansion o Mountain BizWorks’programs and lending capabilities. Accordingto Mountain BizWorks chie executive ocer,Shaw Canale, “The beauty and creativity o what we have to oer is that we can be sofexible. We can provide capital or start-ups,or working capital, or lines o credit, and evencommercial real estate projects as long as we
In 2009, MountainBizWorks approvedapproximately 50 loansworth a total of $795,000for small business ownersand entrepreneurs.