Small Business Matters

[#1]

This week is National Small Business Week - and this year the spotlight is firmly on recovery - most notably in the form of an unprecedented new loan program for debt-burdened entrepreneurs.

Hosted by the Small Business Administration (SBA), this annual event sees top entrepreneurs congregate from around the country on Washington. D.C.  for a celebration of small business.

Along with awards and key note addresses, including new SBA Administrator Karen Mills, attendees also have the opportunity to learn from industry experts developing success strategies to deal with real world issues - in particular, how to survive in a down economy.

For those of you who can’t travel - you can also participate virtually via streaming webcasts of key sessions.

More than Just Great Events - the SBA Announces New Loan Program for Debt-Burdened Small Businesses

 With its unofficial theme of recovery for small business, National Small Business Week provided an appropriate platform for the government to announce a significant new loan program for struggling business owners - the American Recovery Capital Loan (ARC) Program.

Guaranteed by the SBA, the ARC Loan Program provides interest free loans of up to $35,000 to small businesses "for the purpose of making principal and interest payments on existing, qualifying small business loans for up to six months".

These loans can include credit card loans, capital leases, 504 loans, other loans made without an SBA guaranty, and loans made with or without an SBA guaranty since February 17, 2009.

For the untold thousands of business owners across the country who are trying to work through an economic recession that’s left them with falling revenues that no longer cover operating expenses, debts and the basic cost of living - the ARC Loan Program is good news.

Below are more specifics on the ARC Loan, qualification criteria, and where to apply for the loan:

What is an ARC Loan?

The ARC Loan provides up to $35,000 to qualified small businesses to make payments of principal and interest, in full or in part, on one or more existing qualifying small business loans for up to six months. The loan is interest free and 100% guaranteed by the SBA. No collateral is needed and there are no fees associated with the loan.

Loan proceeds are provided over a six-month period and repayment of the ARC Loan principal is deferred for 12 months after the last disbursement of the proceeds.  Repayment can extend up to five years. 

Who is Eligible for an ARC Loan?

The loan is available to viable, for profit small businesses in the U.S. with qualifying small business loans (described above) who are experiencing immediate financial hardship (such as declining sales or revenues or if you are struggling to pay your business operating expenses). Examples of qualifying loans are described earlier in this article.

To qualify, you must be able to prove the viability of your business by providing evidence that you can project sufficient cash flow to be able to meet the loan payments over a two-year period from the loan approval date.

Where to Apply for an ARC Loan

As with other SBA-backed loans, ARC Loans are provided by commercial lenders. Your lender or bank can help determine your eligibility. You can also contact the SBA to learn more about the ARC Loan Program. Your Local SBA Office and other can also offer more information in your region.

For more information about the ARC Loan Program, visit the SBA’s dedicated Web page about the ARC loan program.

Other Resources

• SBA ARC Loan Information Web Portal
• SBA Recovery Information Center: Links to policy, fact sheets, podcasts, and more.
• Information about small business loans and grants from Business.gov
• Loans and Grants Search Tool - A quick online tool for finding financing that your small business might be eligible for

[#2]

I have inquired about the ARC loan program at my bank and SBA lender. Neither has any information for applying. Given there is no incentive for the financial institutions to do these loans, How will this program get money to the eligible borrowers?

[#3]

I would suggest completing this form and calling the toll-free number listed with direct questions.

[#4]

SUZYCUTE,

My company is call Business Borrowers Alliance and we help small businesses who have SBA Loans and are struggling. We are also looking to provide assistance to borrowers seeking the $35000 ARC Loan.

Per the MOD's suggestion, you can complete that form and call the toll-free, but so far, the info that you will get tends to be everything that has already been published, like the above. The details, called the proceedural guidance, we tentatively scheduled to be published on 6/1 but they will probably be out on 6/8 for the programs announced intro on 6/15. MANY details are unclear and MANY lenders are uncommitted. Your question about why they would do it is as basic as it gets.

We have posted a page on our website, Business Borrowers Alliance $35k ARC Loan Services, focused on the program's details as they are released. We will offer a no obligation consultation to answer questions about eligability and applying for a loan.

Neal Gordon

Business Borrowers Alliance

Message Edited by NicoleD on 08-18-2009 08:55 PM

Message Edited by NicoleD on 09-30-2009 11:17 AM

[#5]

If really such easy people will easily get and free free interst loan governemtn provide to small business owner than it would be great help for economy and for business.

Contractor Florida

Message Edited by NicoleD on 08-18-2009 08:55 PM

[#6]

these loans are great for the small businesses. I will have to apply for one.
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Message Edited by NicoleD on 08-18-2009 08:56 PM

[#7]

I never did get a loan for my business.  I just worked my way to rather then have another bull to pay!..    Bills suck!

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[#8]

I think loans aint the best way to be investing in web industry atleast.

-

Jay M

Aftermarket Journal

Message Edited by NicoleD on 09-30-2009 11:18 AM

[#9]

As any small business owner knows, getting a new company off the ground in these very difficult times requires a lot of work.

[#10]

This type of loan is very difficult to get rid off, if the business fails then you are in problem, if however you know the business then this loan can save your life

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Message Edited by NicoleD on 09-30-2009 11:18 AM

[#11]

Where can get ARC loan , What is the procedure ?

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Message Edited by NicoleD on 08-26-2009 12:52 PM

[#12]

Jeff - Check these resources about getting an ARC loan here: http://www.sba.gov/recovery/arcloanprogram/index.html or talk to your local lender.

Message Edited by CaronBeesley on 08-21-2009 06:51 AM

[#13]

Very interesting! Thanks for sharing!

[#14]

How CAN you get rid of these type of loans? 

Best regards

Marcel F
Tøj & tryksager

Message Edited by NicoleD on 09-02-2009 04:30 PM

[#15]

I think that interest-free loans it always well. Though I consider that loans will not help falling business and here to begin new that is another matter ))                                                                                  <a href="http://www.nextonmarket.com">NextOnmarket</a>

[#16]

the arc loan is so good for small businesses. I am so glad to

see it. This will help alot of people trying to stay afloat. I will

try and qualify for it.

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[#17]

My name is Jim and I am the owner of Engagement Rings By Secret Diamond.  I started my business without a loan and have been very fortunate to have it grow in to a very successful online business.  Recently however my company has been investing in upgraded photos as well as videos of our engagement rings.  These assets are quite expensive to have done by a professional and I have used credit (with interest) to get some of these done.  It has limited how many of our rings we can do.  An interest free loan such as this one would be very beneficial to my business and I am quite glad to have recently heard about this resource.  I believe that it can benefit many small businesses, and as all of us know, small business is the lifeline of America.

Message Edited by NicoleD on 09-08-2009 11:46 AM

[#18]

I think this would be a great way to get a loan for small business. Seems like registering and getting it might take a little longer than others though.

Good info!

Matt

<a href="http://www.paramounttraining.com.au">Change Management</a>

[#19]

Also something to keep in mind that this loan is for a narrow scope of businesses.  There are a lot of eligibility requirements.  I read just a few...

1. You have to have made a profit in the last two years.

2. Funds cannot be used to repay debt past 60 days

I applaud the SBA for the effort, but what is the incentive for the banks... 

Blake Slade

Arizona Wedding Photography 

Message Edited by NicoleD on 09-23-2009 04:08 PM

[#20]

This could be an option for those starters but If I would prefer, starting business and having a debt is not a good idea for me. I mean why won't I start a business from the money I have enough to start one.

blietzkrieg

Message Edited by NicoleD on 09-23-2009 04:16 PM

[#21]

My Business is entirely through the internet which, despite the hard times is holding it's own, but what about other internet only companies? Does the Arc program support them?

Engagement Rings

Message Edited by NicoleD on 09-30-2009 10:53 AM

[#22]

I believe loans are what caused this bust in the economy these past two years! I would steer clear unless I absolutely had to get money for some important reason.

Butch Weber

Butch Weber's Winblaze Blog for Affiliate Marketers

Message Edited by NicoleD on 09-30-2009 10:53 AM

[#23]

I am on the ARC loan program and SBA lender. But there is no incentive for the financial institutions have the loans rely.

London Corporate

Corporate Surrey

Message Edited by NicoleD on 09-30-2009 10:54 AM

[#24]

In times of uncertainty loans should be a detailed investigation. The deeper you loan the more you have to answer to someone. Great points.

[#25]

ARC loans will be offered by some SBA lenders for as long as funding is available. ARC loans are not designed for start-up businesses. You can contact the lender who will help you determine if you are a candidate for an ARC Loan.

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Message Edited by ZanetaB on 10-06-2009 11:37 AM

[#26]

This type of loan would be a tremendous help for small businesses like mine.  I already have a loan from the bank, but it's tied to my home, my assets, my A/R and a bunch of other stuff.  If I can actually refinance that loan and remove the UCC filing, I might also help my personal credit as well.

Small businesses make up about 85-90% of the economy and need all the help that they can get!

Jeff T

Show Your Colors Flag Company

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Message Edited by NicoleD on 10-11-2009 11:16 PM

[#27]

Excellent article! This information is very useful, especially for beginning businesses.

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Message Edited by NicoleD on 11-03-2009 11:35 AM

[#28]

While I think your article is well intentioned, I don't think it tells the whole story. For example, the SBA loans. SBA DOES NOT make loans, they simply guarantee them, private lenders make the loans. And, in my experience, also require collateral. If you need a loan to ramp up your business, then you need to have somethig of value for the Lender and the SBA to put a lien against, or you can't get one.

I have heard from many people who are just starting out in business that they have read these types of articles, and think the SBA and the federal govenment is just waiting to help them out, and while that may be the intent, the actual implementation is not as simple as it sounds.

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Message Edited by NicoleD on 11-09-2009 10:52 AM

[#29]

whiteinkstudios - thanks for your comment, the article does state explicitly that the loans are "guaranteed by the SBA", not that SBA "makes the loans". See this paragraph"

Guaranteed by the SBA, the ARC Loan Program provides interest free loans of up to $35,000 to small businesses "for the purpose of making principal and interest payments on existing, qualifying small business loans for up to six months".

[#30]

This is great news. $35k for small businesses to pull themselves out of a rut. I like that.

Keep in mind not everybody qualifies, however I did do a little research and I pulled a checklist from: http://www.sba.gov/idc/groups/public/documents/va_do_files/va_arcfilechecklist.pdf 

It's from SBA.GOV.   Hope this helps!

www.seop.com 

[#31]

You can get most of the information you need right here: http://www.sba.gov/recovery/arcloanprogram/index.html

[#32]

When considering small business loans, every small business should also request and carefully scrutinze insurance premium finance options from their insurance carrier(s) and/or insurance broker.  Insurance premium financing generally does not show up as a creditor on your credit report and many insurance carriers provide financing for their insurance coverage without interest.  Conversely, many insurance agents and brokers offering independent premium financing can and often increase the premium finance rate for additional revenue.

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Message Edited by NicoleD on 01-07-2010 02:48 PM

[#33]

Good to read this article. It is helpful for small scale businesses. I also want to start my own small business. So suggest me some new ideas regarding this.

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