• Need a loan for your small business? U.S. Rep. Lois Capps (D-Santa Barbara) recently announced that many local small business owners might be eligible for interest-free loans under a new program created by the American Recovery and Reinvestment Act. America’s Recovery Capital (ARC) program allows small firms to take out loans of up to $35,000 to pay existing business debts. According to a release from Capps’ office, borrowers pay no interest on the program loans and repayment doesn’t begin for a year. “Small businesses are the heart and soul of our local economy, and they have been particularly hard hit by this economic downturn,” Capps said in the release. “This initiative helps otherwise viable small businesses get through this rough patch by providing small businesses with the resources to pay their bills, retain employees, and play their traditional role as job creators in our communities.” To qualify for the ARC loans, small firms must demonstrate that they’re experiencing immediate financial hardship because of the economic downturn, but are otherwise deemed viable by the Small Business Administration. The loans will be made by commercial lenders and can be used for paying principal and interest for existing, qualifying small business debts like credit card obligations, mortgages, lines of credit, and balances accrued due to suppliers, vendors, and utilities. To apply for ARC loans, business owners should visit their local SBA-approved small business lenders. The loans will be available through Sept. 30, 2010, or until appropriated funding runs out. For more information, visit sba.gov/recovery/arcloanprogram/index.html.
This article appears in Jun 25 – Jul 2, 2009.