Posted By admin on June 4, 2009

If your small business is struggling due to today’s economy, you may be in for a pleasant surprise…

The Small Business Administration (SBA) recently announced that starting on June 15, the SBA will start guaranteeing America’s Recovery Capital loans.   Commonly referred to as “ARC” loans, these are deferred-payment loans made available to established, for-profit small businesses that need help making payments on their existing debt. 

The great news is that the ARC loans are 100% interest free, are guaranteed by the SBA, and have no SBA fees attached to them.

“These ARC loans can provide the critical capital and support many small businesses need to make it through these touch economic times,” said SBA Administrator Karen G. Mills.  “Together with other provisions of the  Recovery Act, ARC loans will free up capital and put more money in the hands of small business owners who need it most.  This will help viable small businesses continue to grow and thrive and create new jobs in communities across the country.” 

ARC loans will be disbursed within a six-month period and must be used for making payments toward principal and interest for existing, qualifiying small business debt.  This includes mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities.

These loans are being issued by commercial lenders, not by the SBA.

To learn more, visit http://www.sba.gov/recovery/arcloanprogram/index.html

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