SBA launches loan program to help small businesses
The U.S. Small Business Administration (SBA) has announced a loan program that could provide temporary relief to small businesses affected by the slow economy.
On June 15, SBA will start guaranteeing America's Recovery Capital (ARC) loans, which are deferred-payment loans of up to $35,000. The loans are available to established for-profit small businesses with a history of good performance that need short-term relief to make payments on existing debt. ARC loans are interest-free, 100 percent guaranteed by SBA and involve no SBA fees.
ARC loans will be disbursed within a period of up to six months, and repayment will not begin until 12 months after the final disbursement. Borrowers then will pay back the loan principal during a five-year period.
"These ARC loans can provide the critical capital and support many small businesses need to make it through these tough economic times," says SBA Administrator Karen 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."
For more information, visit www.sba.gov.
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