Small Business Administration Launches New Small Business Loan Program
Tuesday, June 16 2009
If your business needs a small infusion of cash to stay afloat, an opportunity has arrived.
Small business loans are now available through America's Recovery Capital, a temporary loan program.
The Small Business Administration is accepting loans of up to $35,000, which are designed to keep small businesses open.
Businesses must be for-profit to qualify. The deferred-payment loans are 100 percent guaranteed by the SBA, which will pay the variable interest rate of prime plus 2 percent.
Loans will be disbursed during a six-month period and must be used for payments of existing, qualifying small business debt, including mortgages, term and revolving lines of credit, credit card debt, capital leases and accounts payable to utilities, suppliers and vendors.
Borrowers must pay back the loan principal within five years, after the 12-month deferral period.
ARC loans are made by commercial lenders. For more information, visit www.sba.gov or call (800) U ASK SBA.
Credit: Rebecca Tonn
