SBA ARC Loan Eligibility
In order to qualify for the ARC loan, you must first find out if you are an eligible small business. One of the most important eligibly requirements is your use of the funds. The ARC loan is for (a) a small business that has debt; and (b) the business could become viable if payments were differed. The intention is to help small businesses establish a cash flow again. The ARC loan should be used to pay existing debt payments. Most small businesses make payments to venders, credit card companies, suppliers, and first liens from the 504 loan program that do not have an SBA loan guarantee.
ARC Loans Eligibility | Reasons For Financial Hardship
The ARC Loan eligibility requirements necessitate that you include the reason(s) financial discomfort was caused, and an explanation of the hardship(s) the business is currently experiencing. If you own a business that has been affected by the following conditions you could be eligible for the ARC loan:
Cases of Eligible loans could include business concern charge card responsibilities, primary leases, loans paid to venders/providers, Development fellowship Loans Program (504) 1st lien loan, other Lending to small business concern brought in without a SBA guarantee, and lending created through or with a SBA guaranty active or after February 17, 2009.
ARC loans are configured to aid business establishment going through contiguous fiscal adversity for causes specified for:
- If you have lost your customer base or it has been reduced due to the economy or changes in regulations
- The cost of your business has become amplified
- A reduction in available credit lines
- Significantly reduced or lost of the businesses working capital
- The ability to reorganize existing debt has been eliminated due to tighter lending practices
- Essential layoffs or have lost employees
- If you have been affected by other business failures (i.e., your suppliers are no longer in business)
Owners who would not be eligible for the ARC loan are those that have no indication that additional funds would make a substantial difference in the viability of the business.