Interest free ARC Loans for existing small businesses

There is a special loan for existing small businesses which have been historically profitable, and have been impacted by this latest Economic Crisis. It is called an ARC Loan. ARC loans are interest free for up to 5 years. They are administered through the SBA - Small Business Association for up to $35,000.

What is an ARC Loan?

1. The America’s Recovery Capital, or ARC, loan program is designed to give
   

• viable small businesses suffering immediate financial hardship some temporary financial relief so they can keep their doors open and get their cash flow back on track.

1. The ARC loan program is a new, temporary program authorized by the Recovery Act.
2. An ARC loan is a
   

• deferred-payment loan of up to $35,000,
  
• to be used for principal and interest payments on existing, qualifying debt/loans.

1. ARC loans are 100% guaranteed by SBA and have no SBA or lender fees associated with them (unless the lender must secure collateral as part of the loan).
2. There are no interest charges to the borrower. The SBA will pay the monthly interest at the rate of Prime plus 2% to the lender on behalf of the borrower. The current rate is published in the Federal Register.
3. There is a disbursement period of up to six months followed by 12 months with no repayment of the ARC loan principal. After the 12-month deferral period, the borrower pays back only the ARC loan principal over a period of five years.