Volume 6, Issue 3
Page 7
Budget cutting in IT area can
State Bank Department
lead to offsetting costs later
risk of loss or harm from
events that occur in the
course of conducting busi-
EDITOR’S NOTE: chartered banks weigh the cessity for effective and
ness. Engaging an annual
The author, Carey costs of audit, training and efficient businesses. Fi-
qualified, independent In-
Sharp, is a commis- technology versus a nally, technology contin-
formation Systems audit can
sioned senior examiner healthy bottom line. ues to drive many busi-
identify and possibly pre-
in the Bank Depart- Over the past several ness processes and, as
vent inadequately controlled
ment’s Information Sys- years, an annual Informa- such, has developed into a
activities from causing dam-
tems examination tion Systems audit has cost of doing business.
age to your bank’s bottom
group. He also is a grown to be the norm Continuing these prac-
line. The identification of
Certified Information rather than the exception. tices in both up and down
fraud or, more likely, of sus-
Systems Auditor. Training, whether it is for business cycles is vital in
ceptibility to fraud is a key
As the economic envi- operational personnel, protecting your institution
benefit of the audit process.
ronment continues to management team mem- from operational, legal
Following up on audit as
remain unsteady, at best, bers or auditors, has be- and reputational risk.
well as examination findings
many of our state- come ingrained as a ne- Operational risk is the See SYSTEMS, Page 9
SBA
Continued from Page 6 SBA 504 loans approved in Arkansas
wide, while SBA 7(a) loan
approvals have decreased
by 55 percent in Arkansas
and more than 40 percent
nationwide.
$30
This trend is illustrated
in the accompanying $25
$27.7
charts, with the most re-
cent data through June 30,
2009, 4½ months after
n
s
$20
$19.4
President Obama signed
illio
$15
the Recovery Act into law.
Meanwhile, there con-
I
n
m
$10
$12.7
tinues to be controversy
surrounding SBA’s new
$5
$255 million America’s
Recovery Capital (ARC)
$0
2007 2008 2009
loan program. The pro-
gram offers short-term
Number of loans 32 31 13
relief for a small business Original amounts of SBA funding for three quarters ending June 30 of each year Source: Arkansas Capital Corporation
facing immediate financial
hardship by providing it made in the state of Ar-
program for lenders. which employ just over half
with a zero-interest loan. kansas. It is possible the
Without question, the of all private-sector employ-
The loan is backed by a ARC loan program is too
economic crisis has not ees in the U.S., will find the
100 percent SBA guaranty complicated and time
eliminated the need by necessary financing to help
and the lender receives consuming for lenders.
small businesses for am- propel the fragile recovery.
monthly interest payments As of August 27, SBA
ortizing, long-term debt Information about all of
directly from SBA. made changes to its ARC
provided by SBA loan SBA’s loan programs is
In early September, only Loan Procedural Guide
programs. The question available at:
16 ARC loans had been designed to simplify the
is if small businesses,

http://www.sba.gov/
September 30, 2009
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10