Americas Recovery Capital loan program through SBA offers bailout for struggling small businesses
The new America’s Recovery Capital (ARC) loan from the Small Business Administration may be just what some small businesses needs to push through the recession
Although there are very specific requirements to qualify, this SBA program could be a lifesaver for many small businesses. Some of the qualifications include:
- Your business must be at least two years old.
- You must have shown a profit in one of the last two years.
- You must provide financial documentation of your current struggles.
- You need to provide your plan for turning the business around.
The opportunity is only available until September 2010 or until the $225 million in funding is dispersed. The no-interest loan has a term of five years and offers a maximum of $35,000 per company.
Not all banks are choosing to participate in the ARC program – that includes those that typically work with SBA loans. However, the SBA is continuing its efforts to find more financial institutions that will get involved.
More than $100 million in loans has already been approved through the program, so businesses that are interested are encouraged to act quickly. Companies are advised to try to partner with a local bank that they already have a business relationship with. Some applicants have found better success going this route than applying to work with a national bank where they were not established clients.
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Source: http://www.entrepreneur.com/magazine/entrepreneur/2009/december/204046.html
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