Finally, the SBA will begin accepting applications through existing 7A bank lenders this week for their long anticipated ARC Loan Program. They are 100% guaranteed by the SBA. The description of the program according to the SBA:

“ARC loans will be up to $35,000 and available to established, viable, for-profit small businesses suffering “immediate financial hardship” in order to provide some temporary financial relief so they can keep their doors open and put their cash flow back on track. It is intended for businesses that need short-term help to make their principal and interest payments on existing qualifying debt (including conventional loans, credit card obligations, notes owed to suppliers and utilities.)”

In other words, its for businesses hurting but not dead.

Requirements:

1. Three years of financial statements, cash flow projections for the next two years.

2. The ability to meet current and future debts.

3. You can not be more than 60 days past due on any loans paid with ARC money

4. Acceptable business credit score as determined by SBA.

The Good News:

1. There is no fee associated with them.

2. They are interest only 12 months. The principal is then repaid over 5 years.

The Bad News:

1. There are only 10,000 loans to be given out. Only 50 will be processed a week  per lender for the more than 30M small businesses out there.

2. The ARC program is being handled by banks.

Let me know your experience with the ARC Program!