New SBA program update – ARC loans
It’s Small Business Week. Or, so says the federal gov’t.
Of course, we all know that EVERY week is small business week!
Received this transcript of SBA Administrator Karen Mills’ speech and thought it contained a nugget of information, excerpted here below, that might be of interest to you:
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Today, I’m pleased to announce plans to add another tool to our toolbox. The Recovery Act called for a new temporary program – America’s Recovery Capital. “ARC” loans are designed to provide some temporary relief for viable small businesses with immediate financial hardship… to keep their doors open until they can get back on track. Here are the details.
· These short-term loans of up to $35,000 can be used to cover payments on non-SBA debt.
· They have no SBA fees or interest costs for the borrower and are 100 percent guaranteed by the SBA.
· The loan is for six months, followed by 12 months of no repayment and then 5 years to pay it back.
· ARC loans are for viable businesses, meaning that the business must have an established history of good performance – but they are in a situation where they just need a little extra help to bridge the “troubled waters.”
We expect these loans to be in high demand. By June 8, we expect to release detailed guidance for lender training. We will be ready to accept loan packages from lenders by June 15.
I know only a fraction of you are actually truly impacted by loans from the SBA, but still, just in case – this is good for you to be aware of.