The U.S Small Business Administration is now accepting applications for its new, temporary America’s Recovery Capital, or ARC, loan program. Loans will be made by commercial lenders, not the SBA directly.
Loans of up to $35,000 are designed to provide a bridge for established, viable, for-profit small businesses that are suffering immediate financial hardship and are struggling to make principal and interest payments on business debt. ARC loans are 100% guaranteed by the SBA and have no SBA fees associated with them.
There are no interest charges to the borrower. The SBA will pay the interest on ARC loans to lenders at the variable rate of Prime plus 2%.
Repayment for small business owner borrowers will not begin until 12 months after the final disbursement. The payback period for the loan principal is five years.