SBA ARC Loan Requirements
The requirements for the ARC loan are:
- A practical small businesses
- The business must be for profit
- Location of the small business must be in the United States
- A business that is facing abrupt monetary adversity
- Start up small businesses will not qualify under this program
Some of the additional requirements that the SBA will ask for are:
Your business should be an existing business that can prove a profitable year within the past two years.
It would be a good idea to make a business plan that includes the repayment of your current and future loan obligations, over the course two years, from the loan approval date. One example would be a statement of your financials from the previous two years, and a statement of projected financials for the upcoming two years. However, if you feel that your small business is not going to meet the SBA requirements you are encouraged to talk to your lender.
The Arc loan is not to be used for purchasing land or buildings.
This is a government small business recovery loan (bailout) for community small business owners. The SBA will restrict your capital injection in much the same way it does for large businesses. The funds will be paid out on a schedule that your lender will base off of your financial statements. You will need to create those statements. The payments that you will be given will not require repayment until 12 months following the last ARC loan payment. You will not get a lump sum.
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