Despite some criticisms of the SBA's new America RecoveryCapital program, Dupaco Community Credit Union said it believes theloans will bring much-needed assistance to members.

The ARC program, which offers loans up to $35,000, has a 100% SBAguarantee, charges no interest and has deferred payments, has onlyfunded 139 loans totaling $4.6 million since its debut on June 15.Some lenders have criticized the program's underwriting expensesand consequences if a borrower defaults.

The $621 million, Dubuque, Iowa-based Dupaco Community is notdeterred. Its staff attended two ARC training sessions and mailedout information to a list of business members who might beinterested in the program, said Steven Baumhover, vice president ofbusiness lending and development at the credit union.

"In the past week, we have been receiving phone calls inquiringsince SBA has started to promote the program," Baumhover said. "Iam not sure how other credit unions will embrace the new SBAprogram, but based on my knowledge [of it], I believe it can helptheir members as well."

Baumhover said Dupaco has offered SBA loans for more than fiveyears and was the first credit union in Iowa to fund one of theagency's Patriot Express loans for military veterans.