Businesses facing hardships can apply for ARC loans

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By Lancaster County Chamber of Commerce

WASHINGTON, D.C. – The Small Business Administration recently began accepting loans for a temporary new program called America’s Recovery Capital. 

“ARC” loans of up to $35,000 are designed to provide a bridge for viable small businesses with immediate financial hardship – to keep their doors open until they get back on track.

“Our chamber is providing our local businesses with this timely information that could possibly assist them with weathering these challenging economic times,” said Lancaster County Chamber of Commerce Chairman Jay Rainey.

“The chamber is committed to researching and locating resources available to our members and to all businesses in Lancaster County to assist them in becoming sustainable and successful,” Rainey said. “If our businesses need information on this loan program, or if they are facing challenges for which assistance is needed, we encourage them to contact our chamber staff, who are always willing to help find answers to questions. We are working every day on behalf of our members.”

ARC loans are deferred-payment loans, available to established, viable, for-profit small businesses that need short-term help.

ARC loans are 100 percent guaranteed by the SBA and have no SBA fees associated with them.

ARC loans will be disbursed over six months and will provide funds to be used for payments of principal and interest for existing, qualifying small business debt, including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities.

SBA will pay the interest on ARC loans to the lenders at the variable rate of Prime plus two percent.   

Repayment will not begin until 12 months after the final disbursement.  After the 12-month deferral period, borrowers will pay back the loan principal over a period of five years.

ARC loans will be made by commercial lenders, not SBA directly.  For details on ARC loans, visit  www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_act_arc_l....

For details about all of the SBA’s programs for small businesses, call the SBA Answer Desk at 1-800 U ASK SBA or TDD 704-344-664.

For details about the Lancaster County Chamber of Commerce, call 283-4105.