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America's Recovery Capital Loans - Emergency Loans

Recovery Act Loan Program from SBA


In May 2009 the Small Business Administration announced a new loan program, America's Recovery Capital (ARC), to help small businesses that are struggling to make debt payments as a result of the tough economy. The program of emergency loans, announced by SBA administrator Karen Mills, will help small businesses through commercial lenders.

America's Recovery Capital Loans
According to the SBA:
[blockquote shade="0"] 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 emergency loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.

More Details on ARC Loans
The SBA has some details on these emergency loans, noting that they will be
[blockquote shade="0"]"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 emergency loans. After the 12-month deferral period, borrowers will pay back the loan principal over a period of five years."

As with other programs, ARC loans will be made by commercial lenders, not SBA directly.

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