Lend Fixed, Receive Floating, Generate Fee Income
The ARC Program gives your credit union all the benefits of loan hedging on commercial loans, without the complexities of a traditional interest rate swap.
Book ARC Demo
*At closing, we fix the note for your member with a simple 4-page client addendum written in simple terms.
Earn up to 2% of the loan amount that you can recognize as income immediately. Paid to you from us as an ARC referral fee.
Reduce credit risk by stabilizing your member’s DSCR with a long-term fixed rate. Mitigate your credit union's interest rate risk with a floating rate loan, helping to stabilize net-interest margin. Loan participation sales to other credit unions are permitted.
There is no cost, or ongoing obligation, when you sign up for the Program and no cost when you book an ARC loan.
*Assumable Rate Conversion (ARC) loans are subject to approval by the client credit union
ARC allows you to offer up to a 20-year fixed rate commercial loan, while you earn a floating rate.
This allows you all the benefits of an interest rate-swap without the complexities.
ARC |
TRADITIONAL SWAP | |
|---|---|---|
| Fee Generation | ||
| Swap/Hedge Portability | ||
| Hedges for Unique Structures | ||
| No Hedge Accounting or Reporting | not checked | |
| No ISDA Documentation for Credit Union or Member | not checked | |
| No Cash Collateral | not checked |
(716) 930-4806 
scheema@southstatebank.com
