SBA's ARC loan offers short-term financial relief

by Sue Pitts on June 30, 2009

From the Small Business Association’s Website:

If your small business is stressed meeting expenses during these economic times, the U.S. Small Business Administration has a new loan program designed just for you. SBA’s America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability. Each small business is limited to one ARC loan. ARC loans will be offered by some SBA lenders for as long as funding is available or until September 30, 2010, whichever comes first.

For information, visit www.sba.gov/recovery/arcloanprogram/index.html.

If you would like to speak directly to an SBA customer service representative about the ARC Loan Program, call 866-947-8081 Monday through Friday during the hours of 8am to 9pm (Eastern Time).

Or call the Iowa Small Business Development Center at Iowa Western Community College at 712-256-6552.

{ 1 comment… read it below or add one }

Neal Gordon July 1, 2009 at 5:29 pm

One big problem for borrowers is locating a SBA ARC Loan from a lender who is not their bank. Many of the banks want to provide loans to current customers only, especially if they hold a loan from that customer. Also, many banks have additional requirements for the loans beyond what the SBA has required. Finally, lenders have different policies as to whether they will make minimum payments on debt or will make larger payments toward the total debt. But not one of the banks is happy about having to process and underwrite a loan package for a $35,000 loan that requires nearly as much information, documentation and support as is needed for a regular sized SBA 7(a) loan.

My company, Business Borrowers Alliance, is contacting the large and mid-sized banks to learn if they are participating and what their specific requirements are.

We provide direct assistance and help to businesses throughout the complete ARC Loan application process. For more information, contact us at 866-944-3866, mail@businessborrowersalliance.org or visit http://www.businessborrowersalliance.org

Reply

Previous post:

Next post: