SBA Hardship Loans Start Today

Recognizing that many of the nation’s small businesses are suffering in this economy, the SBA will begin offering America’s Recovery Capital (ARC) loans today (June 15, 2009). Like most SBA loans, ARC loans will be offered through conventional lenders with 100% SBA backing. The loans of up to $35,ooo are available to established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing and qualifying business debt.

ARC loans will be disbursed over a period of up to six months and will provide funds to be used for payments of principal and interest for existing, qualifying small business debt including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities. SBA will pay the interest on ARC loans to the lenders at the variable rate of Prime plus two percent.

Payment from the borrower won’t be required until 12 months after the final disbursement after which the loan principal will be paid over a period of five years.

For details about eligibility and availability of ARC loans, visit the SBA web site.

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