Starting June 15, the Small Business Administration will roll out its America's Recovery Capital program that features interest free loans and deferred payments of up to $35,000, the agency announced today.
The ARC loans are available to established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing qualifying debt, the SBA said. The loans will be disbursed within a period of up to six months and will provide funds for payments of principal and interest for existing, qualifying small business debt including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities.
Repayment will not begin until 12 months after the final disbursement. Borrowers don't have to pay interest on ARC loans. After the 12-month deferral period, borrowers will pay back the loan principal over a period of five years. The ARC loans will be made by commercial lenders, not SBA directly, the agency said.
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