Program Plan
Small Business Administration - ARC Stabilization Loan Program Recovery Plan
Updated 05/14/2009
Objectives
Program Purpose
The Recovery Act allows for a new, temporary loan program that is 100-percent-guaranteed and targeted for business stabilization. The America’s Recovery Capital (ARC) loan program will offer up to $35,000 to help viable small businesses that need help in paying their existing loans to get through a short-term downturn. ARC loans will free up capital for these small businesses, with the SBA fully subsidizing the interest payment.
Public Benefits
ARC loans will help small businesses meet existing debt payments to ensure that they have time to re-focus their business plans in order to succeed in the long run.
Measures
The measures have been revised to enrich the performance metrics for Recovery targets. In some instances, targets will not be available until additional baseline data has been collected.
| Measure | Target/Actual |
|---|
| 2009 | 2010 | 2011 | 2012 |
|---|
[-]
Dollar value of loans approved | 190/0 | 150/0 | - | - |
Measure Information
| Frequency : Monthly | | Direction : Increasing | | Type : Output | | Explanation : This indicator identifies the total dollar value of guaranteed loans that have been approved during the fiscal year with Recovery Act funds. By definition, this indicator shows the amount of financing available to help small businesses make payments on existing loans. This indicator is used by management to identify SBA's success in promoting financial assistance to small businesses via Recovery Act funds. The total amount and the relative growth of this indicator can also show the rapidity and depth of SBA's response to the recession. | | Unit : millions |
|
[-]
Number of small businesses assisted | 6200/0 | 4900/0 | - | - |
Measure Information
| Frequency : Annual | | Direction : Increasing | | Type : Output | | Explanation : This indicator identifies the number of small businesses that have been assisted by SBA by receiving approval for an ARC loan. By definition, the loans would not have been available to a small business without the SBA guarantee to the lender. This indicator is used by management to identify SBA's success in promoting financial assistance to small businesses that would not have received financial assistance otherwise. | | Unit : number |
|
[-]
Number of Jobs retained | 31000/0 | 24500/0 | - | - |
Measure Information
| Frequency : Monthly | | Direction : Increasing | | Type : Outcome | | Explanation : This indicator identifies the number of jobs retained as a result of SBA's ARC loans. This indicator measures one of the Recovery Act objectives, which is job creation/retention. This data is self-reported by the borrower and appears in the SBA loan application form. | | Unit : number |
|
Schedule and Milestones
Milestones
| Milestone |
Completion Date |
Planning Phase includes
• Defining budget requirements
• Developing subsidy model and submit Human Capital Needs
• Defining IT requirements and implementation plan
• Conducting Risk Planning
• Planning for winding down program
|
05/30/2009 |
Execution Phase includes
• Issuing program announcement, publishing regulations and procedural guidance
• Performing lender outreach and training
|
06/01/2009 |
Evaluation Phase includes
• Monitoring Program Performance and provide regular updates to relevant stakeholders
|
09/30/2010 |
Projects and Activities
The SBA will develop published procedural guidance, coupled with education, outreach and training to lenders, trade associations, and Congress.
Activities:
• Financial Model
• ARC Regulations
• Policy Notices
• Agreements and Forms
• Contracts
Associated funding for this program is $255M in credit subsidy budget authority, to cover the estimated lifetime default costs to the taxpayer.
Review Process
The SBA developed an agency-wide framework to ensure timely and effective implementation of Recovery Act projects to support America’s small businesses. The SBA Recovery Act Steering Committee, comprised of senior SBA leadership, meets every week to review, evaluate and assess the status and results of each SBA-related Recovery Act project.
The ARC loan program is managed by a team. Project teams, which meet several times each week, and supporting offices are held accountable for on-time completion of project milestones and deliverables. Project teams also meet regularly with the Performance Management Office to track metrics and milestones, which are reported weekly to the Steering Committee.
The Steering Committee reviews reports to identify:
• Progress made toward each project milestone
• Factors that have the potential to slow implementation or decrease effectiveness
• Effectiveness of each project measured against expected outcomes
• Success of any implemented adjustments made to strategies, services and project
• Effectiveness of risk mitigation strategies
Cost and Performance Plan
To report progress on the implementation of this project, SBA will regularly update the Project Plan to report on the status of milestone attainment. SBA will generate Program Performance Reports that will contain metrics showing outcomes, usage, borrower and lender characteristics, and risk parameters.
In addition, SBA will generate a Program Performance Overview Report, which will contain detailed financial and performance information pertaining to all SBA Recovery Act programs, with cross-year outcome and performance comparisons. This report will be used to measure progress against agency-wide performance targets.
Information contained in the Program Performance Overview Report and each Program Performance Report will be updated periodically and published on SBA’s Recovery web site: http://www.sba.gov/recovery/agencyplans.
Energy Efficiency Spending Plans
Program Plan Award Types
No Data Available