The Small Business Administration has announced details of its America’s Recovery Capital (ARC) loan program.
June 8, 2009
This loan was established as part of the American Recovery and Reinvestment Act signed 2/09, but details on the loan were previously not available. This loan is for small for-profit businesses for up to $35,000 to be used to make principal and interest payments on qualifying loans for up to six months. The ARC loan is interest-free to the borrower, has no payments for 12 months followed by a 5 year repayment period, and has no SBA fees associated with it. It is 100% guaranteed to the lender by the SBA. Although the maximum loan is only $35,000, it will be welcome relief to many struggling small businesses.
The ARC loan is stated to be available next week June 15 through September 30, 2010 or until funds run out, whichever comes first. Funds are expected to run out quickly, so please pass this onto anyone you believe could benefit from this loan and encourage them to speak with their lender.
Attached is a FAQ sheet with common questions. Additional details are available on the SBA website at www.sba.gov.
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