Wednesday, June 17, 2009

Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third District highlighted a new program under the American Recovery and Reinvestment Act that went into effect earlier this week and provides local small businesses with interest-free loans.  The newly launched “America’s Recovery Capital” (ARC) program allows small firms to take out loans of $35,000 to pay down existing business debts.  Borrowers pay no interest on ARC loans and repayment does not begin for one year.

“Nevada’s small businesses are the engines of economic growth in our state.  During these tough times, it is critical that we support our small businesses, and one of the best ways is to make capital more available,” Congresswoman Titus said.  “ARC loans can provide a buffer so that business can afford to get through this recession, meet payroll, and keep their doors open.”

ARC loans will be made by commercial lenders and can be used to make payments of principal and interest for existing, qualifying small business debts such as credit card obligations, mortgages, lines of credit, and balanced due to suppliers, vendors, and utilities.  The loans are available to viable, for-profit small businesses in the U.S. that have qualifying small business loans and are experiencing immediate financial hardship.  To qualify businesses must have financial statements demonstrating it was profitable in one of the past two years, and be able to project sufficient cash flow to meet current and future loan payments over a two-year period from loan approval.

To apply for ARC loans, businesses should visit their local SBA-approved small business lenders.  The loans will be available through September 30, 2010, or until appropriated funding runs out.  Additional information about the ARC loan program is available at http://www.sba.gov/recovery/arcloanprogram/index.html

Congresswoman Titus also pointed out that in addition to the ARC loan program, the recovery package contains other measures aimed at helping small firms access credit.  For instance, the new law increases the percentage of a loan that the SBA can guarantee, makes SBA-backed loans more affordable, and provides tools to unfreeze the small business credit markets, helping small companies access capital at affordable rates.

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Tags: economy, Recovery and Reinvestment Act