Truth About Receiving Payment (TARP)
Friday, February 13, 2009 by Mike Chatas
OK. I’m really not that clever. I didn’t come up with the acronym; one of my colleagues did the hard work for me. She’s pretty clever, though, isn’t she? So now for the easy part….What is TARP anyway? And what won’t / will it do for you?
- TARP won’t pay down your mortgage...but it will allow banks to make loans to you and your small business.
- TARP isn’t free...banks are required to pay every penny of the funds back, plus 5 percent interest. In an environment where Fed Funds are 0% to ¼%, you could argue that TARP funds are not free at all.
- [MYTH] TARP is used to bail out troubled banks...those banks receiving TARP funds actually have to go through a rigorous application process. Only those banks that meet the Treasury Department’s standards are offered TARP funds. TARP funds allow banks to continue making loans to businesses.
Are you ready now to get the real 4-1-1 on TARP? Click here for more information.