BIG help available from little known loan program
In the America Economic Recovery Act of 2008 is a loan program that is not being given much attention but can be very helpful for small businesses. It is the America’s Recovery Capital Loan (ARC) program offered by the SBA. It 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.
The temporary ARC program offers interest-free loans to viable small businesses, which carry a 100 percent guaranty from the SBA to the lender and require no fees paid to SBA. Loan proceeds are provided over a six-month period and repayment of the ARC loan principal is deferred for 12 months after the last disbursement of the proceeds. Repayment can extend up to five years.
The problem is finding a bank willing to issue the loan even though the loans are 100% guaranteed by the Federal Government. Some bankers are saying this loan is not profitable enough for them. It seems to me that since these banks took billions of dollars in loans from the American Taypayers they could find a way to administer these loans for America’s small businesses.
For more information please Google ARC loans by SBA. Or better yet, call your local banker and ask them about the loan program. When they tell you they don’t offer it ask them why? Then write the SBA field office near you and file a complaint.
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