Friday, July 03, 2009
Government Offers Interest-Free Loans to Eligible Small Businesses
Area businesses stressed to meet expenses during the sputtering economy can get access to interest-free, short-term loans through a new program from the U.S. federal government and made available through local lending institutions.
The U.S. Small Business Administration's (SBA) America's Recovery Capital Loan (ARC) Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability, according to Steve Baumhover, Dupaco Community Credit Union's vice president of business lending and development.
Dupaco is an SBA-approved lender with more than 25 years of experience in all facets of business services.
Among the features of the loan program, which launched in mid-June, are 0% interest rate on the loan, no guaranty fee, and no payments for the first 12-18 months. The program is open only to existing businesses.
The ARC Loan Program is available as long as SBA has funding available or until Sept. 30, 2010, whichever comes first, according to the SBA. Complete details of the ARC Loan Program, including eligibility requirements, can be found at www.sba.gov/recovery/arcloanprogram.