ARC Loans Available

The Small Business Administration (SBA) is providing loans to “viable small businesses facing immediate financial hardship.” Loans of up to $35,000 are available through America’s Recovery Capital Loan Program (ARC). In order to receive an ARC loan, the business must be able to show profit in one of the past two years as well as show a financial hardship (which can include loss of consumer base, loss of major supplier or reduced workforce).

ARC loans can be used to make payments on principal and interest of existing business loans. The loans are interest free and payments are deferred for 12 months. The program began in June 2009 and runs through September 2010. The SBA is authorized to spend $255 million and it is advised to find a lender as soon as possible because lenders have a limited number of loans they are allowed to give out. In order to apply for an ARC loan, contact you current lender. For more information on the loan program, go to the SBA website at www.sba.org.