You have been reading about all the bail out plans being provided by the government to banks and auto manufacturers and no matter what your opinion on these programs you can’t help wonder “where is my bail-out?”
Well there is a program being offered by the SBA (Small Business Administration) that does offer businesses a hand up out of the hard times we are experiencing.
The program is called the SBA’s America’s Recovery Capital Loan Program and is available to small businesses needing immediate help with financial hardship.
So if your business has a realistic chance succeeding you may be eligible for this program.
ARC loans are interest free, and are 100% guaranteed to your lender by the SBA. They also do not require any fees to the SBA.
Funds are provided over a six month period and payment of principal is deferred for 12 months after the last pay out of the funds to your business. Once payments start up they can be extended over a five year period.
The ARC program provides up to $35,000 with an immediate infusion of cash to be used to help with payments for principal and interest on existing business debt relieving cash flow so a business can focus on covering such items as inventory purchasing, payroll and regular operating expenses.
To be eligible you must be a for profit organization residing within the United States that have qualifying small business loans and are experiencing immediate financial hardship. You also must demonstrate that your business has been profitable in one of the last three years and be able to demonstrate enough cash flow to meet current and future loan payments for the next two years following the loan approval. These loans are not designed for start-up businesses. However your lender may have additional programs available that meet your needs should you not qualify for the ARC program.
Qualifying small business loans that will be considered are credit card debt, capital leases, notes payable to vendors and suppliers as well as other types of loans.
If you are suffering financial hardship in your business because of loss of customers, increase of expenses, loss of working capital or credit availability reduction, loss of employees or loss of major suppliers this program may help you move beyond these issues.
These loans are available through September 30, 2010 or for as long as funding is available so if you think this might help your business don’t wait, apply now. To apply for this program contact your local bank and/or lender.
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