New SBA Loans to Help Your Business Recover
If your business has hit a rough patch due to the economy, there is a new, interest-free SBA loan that can help you.
When President Obama signed the 2009 Recovery Act, the America's Recovery Capital (ARC) loan came into being to help struggling small businesses. ARC loans are meant to help you pay off your debts on one or more existing small business loans. The SBA says, "The best candidates for ARC loans are small businesses that in the past were profitable but are currently struggling, yet have been making loan payments or are just beginning to miss loan payments due to financial hardship."
The loans are being offered until September 30, 2010, or until the appropriated funds run out -- whichever comes first -- and you can apply for up to $35,000. In addition to not paying interest, you won't have to start making payments for 12 months and there are no SBA fees associated with the loans. Repayment can extend up to five years.
Learn more by visiting the SBA ARC Loan Program Center and reading about the criteria for eligibility.
Photo courtesy of Wadester16 on Wikipedia licensed under the Creative Commons Attribution ShareAlike 3.0 license
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Although the ARC LOAN program can be very helpful for some businesses, one of the biggest problems, so far, has been that borrowers are having difficulty locating a lender who will lend to them especially if their lender doesn’t participate. Many of the banks want to provide loans to current customers only, especially if they hold a loan from that customer. It can depend on the type of debt the business carries. Finally, lenders have different policies as to whether they will make minimum payments on debt or will make larger payments toward the total debt. Banks are unhappy to process and underwrite a loan package for a $35,000 loan that requires nearly as much as is needed for a regular sized SBA 7(a) loan.
My company, Business Borrowers Alliance, is contacting the large and mid-sized banks to learn if they are participating and what their specific requirements are. We provide direct assistance and help to businesses throughout the complete ARC Loan application process.
For more information, contact us at 866-944-3866 or mail@businessborrowersalliance.org
Neal Gordon
http://www.businessborrowersalliance.org