Last week, the SBA announced a little known program, America’s Recovery Capital (ARC) that can give small business owners going through hard times and struggling to keep up with debt. The program, administered through banks, but guaranteed by the US government gives no interest and payments on the loans for up to a $35,000 loan for a year. Owners have 5 years to repay.

The SBA is still creating the guidelines for the ARC and doesn’t know when the funds will begin to flow. “The details have not been worked out yet,” SBA spokesman Michael Stamler was quoted by CNN. “It a very complex undertaking, but we are hurrying as fast as we can, consistent with making sure we have a thoughtful, effective program in place.”

I met Eric Zarnikow, the SBA’s associate administrator for capital access, today at the SBA Economic Recovery Forum  (where I spoke to 700 people at lunch). He said that these loans will be given to viable companies that have a earnings history and proven record for success.

Congress allocated $255 million in the stimulus bill to fund the ARC program. This kind of program can’t come soon enough.