New Loan Program Could Help U.S. Small Businesses
June 18, 2009
This week, the U.S. Small Business Administration began offering loans with generous repayment terms as part of a program created by the American Recovery and Reinvestment Act of 2009, which is designed to help businesses through the economic downturn.
Through the America’s Recovery Capital loan program, qualifying small businesses can apply for loans of up to $35,000. This capital infusion can allow owners to pay down other debts, such as high-interest loans, and reallocate funds for business expenses such as payroll, marketing or technological investments.
ARC loans are available through Sept. 30, 2010, or until Congressionally authorized funding runs out. The loans are interest-free, come with no SBA fees and carry a 100 percent guarantee from the SBA to the lender. Loan proceeds are provided over a six-month period and repayment of the ARC loan principal is deferred for 12 months after the last disbursement of the proceeds.
To learn more about the ARC loan program, including eligibility information, business owners should check with local SBA officials to obtain a list of participating lenders in your area. To find the closest SBA office, click here.
