May 22, 2009

SBA Launches ARC Loan Program to Help Struggling Small Businesses

I just received an email from the SBA Director in Utah that announced the new “ARC” loan program for small businesses.

Beginning on June 15, SBA will start guaranteeing America’s Recovery Capital (ARC) loans.  ARC loans are deferred-payment loans of up to $35,000 available to established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing qualifying debt.  This is an incredible program … ARC loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.

According to the SBA:
“These ARC loans can provide the critical capital and support many small businesses need to make it through these tough economic times,” said SBA Administrator Karen 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 when they need it the most. This will help viable small businesses continue to grow and thrive and create new jobs in communities across the country.”

I agree… it’s a good start.

As with all SBA loans, ARC loans will be made by commercial lenders, not SBA directly.  For more information on ARC loans, visit http://www.sbaarcloans.org.