SBA Announces Emergency Funding for Small Business

Yesterday, the Small Business Administration announced a new loan program aimed at helping small businesses ride out the current economic storm. 

SBA director Karen Mills said the new American Recovery Capital (ARC) program will offer “viable” small businesses six-month loans of up to $35,000.  She said best candidates are businesses who can show prior profitability while illustrating recent struggles due to the economy.  She further stated the most typical use of these funds would be for businesses to pay existing principal and interest payments (the exception being for existing SBA loans).

The 100% SBA-backed loan is interest-free and must be used within six months.  Borrowers have six years to repay.  The program begins officially June 15 and will continue for as long as funding is available, or September 30, 2010, whichever comes first.


One comment on “SBA Announces Emergency Funding for Small Business

  1. Tina E. Bean says:

    I have recently had an expansion of my existing business. Due to the economy, the bank has been reluctant to release all of my funds. After 8 months of not having my business up and running 100%, my business is suffering financially. Any help would be greatly appreciated.

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