It appears that Alpaca does not presently allow shorting hard-to-borrow names. Other brokers of course offer this (and mark up the borrow rates so it functions as a profit source for them and an important service for their clients). I would often be willing to pay a significant borrow rate (2-8% annually) to be able to sell short names that are unavailable to short on Alpaca but are available to short on E-trade and other BDs.
(1) Am I correct that Alpaca does not allow shorting hard-to-borrow names at any rate?
(2) Are there any plans to add this service?