Small business owners, here’s something you should know: The ARC loan program

July 29, 2009 at 12:53 pm | Posted in Uncategorized | Leave a comment
The Small Business Administration is offering a special loan guranty program to help struggling small businesses make payment on existing debt. America’s Recovery Capital (ARC) Loan Program is available to viable small businesses experiencing financial hardship that can demonstrate reasonable projections that indicate an ability to repay the debt.
 
A viable small business is one that has a history of good performance that is beginning to struggle with making loan payments, but can reasonably project that it can get back on track with the infusion of ARC loan funds and the benefit of deferred payments.
 
ARC Loan Basics:
  • Deferred payment loan, up to $35,000
  • Loan provided by commercial lender and 100 percent guaranteed by SBA
  • Interest-free to borrower; SBA pays interest to lender 
  • Proceeds used to make principal and interest on qualifying loans
  • No fees charged by SBA or lenders
 
ARC loans are designed to help businesses experiencing immediate financial hardship for reasons such as:
  • Declining sales and/or revenues
  • Increasing expenses
  • Reduced working capital
  • Cash shortage due to frozen inventory or receivables, accelerated debt or reduced or frozen credit lines
  • Difficulty in making loan payments on existing debt
  • Difficulty in paying employees
  • Difficulty in purchasing inventory, materials, or supplies
  • Difficulty in paying rent and/or other operating expense
Loan proceeds may NOT be used for business startup or for business expansion. Borrowers whose loans are already severely delinquent or whose past performance or future cash flow indicates that the business is not viable are not good candidates for an ARC loan.
 

  1. Click on the following SBA link for more information: http://www.sba.gov/recovery/arcloanprogram/index.html
  2. Share this information with your lender to help determine if you are a candidate for an ARC Loan. Find out if your lender would like to participate in the ARC loan program and/or is already doing so. This is a lender driven loan program. 
  3. Contact us at the Region 2000 Small Business Development Center at   (434) 582-6170. We can help you determine if the ARC loan is right for you and help you with the application process. 
NEXT STEPS:  Applying for an ARC Loan
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