Small Business Funding: The ARC Loans
September 7th, 2009
ARC Loans (America Recovery Capital), also called SBA Stabilization Loans, can be used to make payments of principal and interest on existing debt. These loans are relatively new (they are part of the 2009 Recovery Act), and are made by commercial lenders who are SBA participants. SBA guarantees 100% of the loan and pays the interest throughout its term. Moreover, there are no fees to be paid to the SBA. The loan disbursement can be effected over a six-month period, and repayment of the loan principal is up to five years, with the first repayment after 12 months after the last disbursement of the loan amount. In other words, there is nothing to be repaid for 12 to 18 months, depending on how you receive the loan amount.
