Infocusselling’s Blog

July 1, 2009

Here’s Help for Businesses Feeling the Pinch

Filed under: Uncategorized — Educated and Aware @ 10:32 pm
Tags: , ,

by Chris McEvoy, Wingspan Thinking LLC

www.gowingspan.com

Banks swear up and down they are lending, but who do you know who has gotten a loan recently? The bar is pretty high for those that are lending.

As part of the 2009 Recovery Act, the Small Business Administration has a new program called the ARC Loan Program. Go here (http://www.sba.gov/recovery/arcloanprogram/REC_WHATISARCLOAN.html) to learn more.

The ARC Loan program differs from the normal SBA guaranty loans in many ways.

The purpose of the loan is to enable you to make payments of principal and interest on one or more existing, qualifying small business loans for up to 6 months. Here are some of the goodies:

• Maximum amount: $35,000

• No FICO score requirement

• Interest-free to the borrower (see WARNING below)

• Carries a 100% guaranty by the SBA to the lender (i.e., risk free to the lender)

• Requires no fees paid to SBA

• Loan proceeds provided over a 6-monthy period

• Repayment of the ARC loan principal is deferred for 12 months after the last disbursement of proceeds

• Repayment can extend up to 5 years

The website cited above provides additional information for both borrower and lender.

The program has funding of $255 million, and when that runs out no more loans are guaranteed. So, if you have an interest, visit the website and find out how to apply.

WARNING: this is a very new program, and not everyone is up-to-speed on the details. If on the website above you click on “About the ARC Loan Program,” you will find the statement: “ARC loans are interest-free to the borrower.” If you go to http://www.sbaarcloans.org/, you find this statement: “You don’t make a single payment for 12 months (plus NO accrual of interest for the first 12 months).” This makes it sound like it isn’t totally interest free.

You can also call the Indy SBA office: 317-226-7272, extension 115 for more information.

Act now!

Click here for full article to print

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1 Comment »

  1. The program is a totally INTEREST FREE loan to the borrowers.

    Comment by Neal Gordon — July 7, 2009 @ 2:27 pm


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