As of June 15, the SBA began accepting applications for the America’s Recovery Capital (ARC) loan program, which provides up to $35,000 for small businesses that are experiencing an immediate financial hardship due to the tough economic times. This loan program is designed to help keep these businesses afloat until they get back on track.
ARC loans are interest-free to the borrower and payment for these loans is deferred for 12 months, after which the borrower will have 5 years to pay back the loan principal. The funds provided by these loans are meant to be used to make payments of principal and interest on existing, qualifying small business debt, including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities. Additional details on this program can be found at http://www.sba.gov/recovery/arcloanprogram/index.html
The SBA will provide a 100-percent guaranty for these loans and they have no SBA fees associated with them. To see if you qualify and to apply, contact your local SBA lender or call us.