About the ARC Loans
The ARC (America’s Recovery Capital) loan assists small businesses that are affected by the downturn in the economy. Its goal is to help those businesses to get back on track. Small business employs the majority of the U.S. workforce, and is an important part of the economic recovery plan. The White House’s plan to turn the economy around, hence creating more jobs and consumer confidence, has its roots in the small business owner’s ability to sustain viability. Many businesses have experienced the challenges that the current economy has placed on cash flow. For a business owner who is in need of cash flow to keep valuable employees, or to purchase additional inventory, the ARC loan may be a good solution.
In order to free up the cash needed to grow a business back in the black, the SBA will loan up to $35,000 for the purpose of freeing up capital. A small business that has business debt will be able to use the loan to make the payments interest free. One example would be to use the loan to make the principle and interest payments on a small business loan. Next, using the cash that would normally go to the payment is instead used as cash flow that has been lost due to changes in federal regulations, or loss in customer base.
The ARC loan will be made by commercial lenders, so please review each lender’s requirements. Every lender will have to show that the borrower’s business has been stressed due to the economic downturn. You may want to interview several lenders to (a) determine their experience level; (b) establish their desire to fund ARC loans; and (c) to find the best lender for your circumstances.
Visit the SBA ARC Loan center page for more information
4 steps on How Get an ARC loan what to to do to receive funding