Los Angeles, CA — Karen Mills, the administrator for the federal government’s Small Business Administration (SBA), is ready to distribute as much as $35,000 per loan to qualified businesses as part of America’s Recovery Capital Loan Program (ARC).
The program is included in the economic stimulus bill and will issue interest free loans to small businesses that are having difficulties because of the economic downturn.
Some of the concerns the SBA ARC loans are designed to address are business bills, credit card payments, accounts payable and purchasing material.
Mills announced the agency will begin accepting loan packages by June 15.
The loans are predicted to be in high demand and are expected to be depleted in a few months.
And as with any government agency there are sure to be mountains of red-tape and confusing bureaucratic procedures and double-speak. Yet experts are standing by to walk applicants step-by-step through the entire process including qualification requirements, finding a lender, ensuring the applicant has the correct documentation for the ARC loan as well as a larger SBA loan.
The loans are interest free for a period of twelve months and there are no payments required for the first year.
“The first priority is to get the Recovery Act implemented,” said Mills. “Get the money in the hands of small businesses. At this moment, when we have so much economic distress, this is ‘making a difference’ money. And it’s already out, and we’re seeing businesses where it’s made a difference.”