WASHINGTON - Small businesses suffering financial hardship as a result of the slow economy may be eligible to receive temporary relief to keep their doors open and get their cash flow back on track through to a new loan program announced today by SBA Administrator Karen G. Mills.
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. ARC loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.
"These ARC loans can provide the critical capital and support many small businesses need to make it through these tough economic times," said Administrator 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."
As part of the Recovery Act, the ARC program was created as a no-interest, deferred payment loan to help small businesses that have a history of good performance, but as a result of the tough economy, are struggling to make debt payments.
ARC loans will be disbursed within 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. Repayment will not begin until 12 months after the final disbursement. Borrowers don't have to pay interest on ARC loans. After the 12-moth deferral period, borrowers will pay back the loan principal over a period of five years.
ARC loans will be made by commercial lenders, not SBA directly. For more information on ARC loans, visit http://www.sba.gov/
Saturday, May 30, 2009
Thursday, April 2, 2009
SBA Workshop: Tips to survive and Thrive in a Challenging Economy
A FREE Workshop for Small Business Owners
Tuesday, April 7, 2009
8:30 am to 10:30 am
Hosted by:
Traci Starck, Small Business Development Center
Economic Development Association of Skagit County
204 W. Montgomery
Mount Vernon, WA 98273
The SBA and its partners are ready to help small businesses cope with and survive this tough economic climate. If you are thinking about launching a new business, growing a current one, or you are struggling to keep your doors open - this workshop is for you.
Mark Costello of the U.S. Small Business Administration, will facilitate a panel of savvy business advisors who will provide tips on how to protect your business.
They will cover:
Tuesday, April 7, 2009
8:30 am to 10:30 am
Hosted by:
Traci Starck, Small Business Development Center
Economic Development Association of Skagit County
204 W. Montgomery
Mount Vernon, WA 98273
The SBA and its partners are ready to help small businesses cope with and survive this tough economic climate. If you are thinking about launching a new business, growing a current one, or you are struggling to keep your doors open - this workshop is for you.
Mark Costello of the U.S. Small Business Administration, will facilitate a panel of savvy business advisors who will provide tips on how to protect your business.
They will cover:
- How to respond to the current credit market
- Where to go for help - resources available
- Critical steps to secure small business capital
- How to take a proactive stance now.
For more information call: Traci Starck at 360.336.6114
To register via email: Debi McCullogh, debi@skagit.org
Pre-Registration is required.
Space limited to 40 attendees.
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