SBA Introduces No-interest Loan Program for Struggling Small Businesses

As part of the Small Business Administration’s efforts to make the agency and its’ programs more relevant to small businesses, the organization today announced a new loan program targeting existing small businesses who may be experiencing short-term difficulties as a result of current economic challenges.

Beginning on June 15, SBA will start guaranteeing America’s Recovery Capital (ARC) loans.  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 loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.

Read details about the program HERE.

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One Response to “SBA Introduces No-interest Loan Program for Struggling Small Businesses”

  1. businessborrowers Says:

    One big problem for borrowers is locating a 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. 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 as a 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


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