Starting yesterday, June 15, small businesses may be eligible for interest-free loans. The new program was created under the economic recovery act. 2nd Congressional District Rep. Glenn Nye is the chairman of the House Small Business Subcommittee on Contracting and Technology. His office announced the program in a press release yesterday.
The newly launched “America’s Recovery Capital” (ARC) program allows small firms to take out loans of $35,000 to pay down existing business debts. Borrowers pay no interest on the ARC loans and repayment does not begin for one year.
The ARC program was created as part of the American Recovery and Reinvestment Act which Congress and the President passed into law in February. The recovery package also included Congressman Nye’s tax cut of up to $2,400 businesses that hire unemployed veterans from the wars in Iraq and Afghanistan.
A brief audio clip of the Congressman’s announcement.
More details on the program are below the fold.
Additional information from the press release.
Background: America’s Recovery Capital Loan Program
To qualify for the ARC loans, small firms must demonstrate they are experiencing immediate financial hardship due to the economic downturn, but are otherwise deemed by the Small Business Administration (SBA) to be viable. The loans will be made by commercial lenders and can be used for payments of principal and interest for existing, qualifying small business debts like credit card obligations, mortgages, lines of credit, and balances due to suppliers, vendors, and utilities.
To apply for ARC loans, businesses should visit their local SBA-approved small business lenders. The loans will be available through Sept. 30, 2010, or until appropriated funding runs out. Additional information about the ARC loan program is available at http://www.sba.gov/recovery/arcloanprogram/index.html
If we accept any of this money, will Obama tell us how much we can earn in our business?
Posted by Don Tabor | Tuesday, June 16, 2009, 12:43 pmHow do we find out what lenders are SBA approved?
Thanks.
Posted by Cathy Dixson | Wednesday, June 17, 2009, 9:29 amI just took a quick look around the SBA website and there seems to be no list of lenders there. I would suggest contacting your bank to see if they are an SBA lender; if not, they should be able to point you to one that is.
Posted by vjp | Wednesday, June 17, 2009, 9:50 amOne big problem for borrowers is locating a loan from a lender who is not their bank. Many of the banks want to provide loans to current customers only, especially if they hold a loan from that customer. Also, many banks have additional requirements for the loans beyond what the SBA has required. But not one of the banks is happy about having to process and underwrite a loan package for a $35,000 loan that requires nearly as much information as a needed for a regular sized SBA 7(a) loan.
My company, Business Borrowers Alliance, is contacting the large and mid-sized banks to learn if they are participating and what their specific requirements are.
We provide direct assistance and help to businesses throughout the complete ARC Loan application process. For more information, contact us at 866-944-3866, mail@businessborrowersalliance.org or visit http://www.businessborrowersalliance.org
Posted by Neal Gordon | Wednesday, June 24, 2009, 6:26 am