Unpacking the Stimulus Package, Vol. 1
Small businesses struggling in the economic downturn have been eagerly awaiting access to Stimulus Package Funding. On May 20, the U.S. Small Business Administration announced that on June 15, 2009, America?s Recovery Capital Loan Program (?ARC?) will begin accepting applications for up to $35,000 in short-term deferred-payment loans for small businesses facing financial hardship. To qualify for an ARC loan, a small business must have been profitable in the past and must be able to reasonably project that it can get back on track with the infusion of ARC loan funds and the benefit of deferred payments. State SBA chapters are currently waiting for a list of commercial lenders who will implement the program. As lists of local lenders become available they will be posted on state SBA websites. ARC loans are interest-free to the borrower and repayment can be deferred for 12 months and spread over a 5 year period. The loans are to be used for payments of principal and interest on qualifying existing loans and debts, including line of credit or credit card obligations. For more information on what to expect from ARC loans, see Emergency Small Biz Loans: What Qualifies, What Doesn’t and Small Business Loans and the SBA: What to Expect from ARC Stabilization Loans.