In mid-June, the U.S. Small Business Administration (SBA) will begin guaranteeing America’s Recovery Capital (ARC) loans for small businesses. These deferred-payment loans are available up to $35,000 for successful but struggling small businesses that need a temporary cash influx to pay principal and interest on existing qualifying debt, Promo Marketing reports. ARC loans are interest-free, fully SBA-guaranteed and are not subject to any SBA fees.
The ARC loan program was created as part of the stimulus bill. Qualified debt to be paid by an ARC loan may include mortgages, credit lines, capital leases, credit card debt, and notes payable to vendors, suppliers and utilities. ARC loans are disbursed in six months, and five-year repayment begins a year after the final disbursement with zero interest.
The SBA will not make ARC loans directly; they will be made by commercial lenders.
Source:
Promo Marketing Magazine: U.S. Small Business Administration (SBA) Launches 100-Percent Guarantee ARC Loan Program To Help Struggling Businesses
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