SBA ARC Loan - Coming June

[Guest Stefan]

Washington Metropolitan Area District Office

740 15th Street NW, Suite 300

Washington, D.C. 20005-3544

Phone: (202) 272-0347

 

 

http://www.sba.gov/localresources/district/dc/index.html

[Guest Luke]

Thanks

 

I just spoke with Melissa Fisher. What a wonderfully cheerful person. The SBA District offfice will not know anything until mid June.

 

I am going to see if we qualify for the program. Melissa recommended that I call Deric Mims, a seasoned business banker on what I should do.

 

Tel: 202.879-6349

[Guest Recovery.gov]

ARC loans can be used 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. ARC loans provide an immediate infusion of capital to small businesses to assist with making payments of principal and interest on existing debt. These loans allow borrowers to redirect cash flow from making loan payments to investing in their businesses, to help sustain the business and retain jobs. For example, making loan payments on existing loans with proceeds from an ARC loan can allow a business to focus more funds on core operations, such as buying inventory or making payroll.

 

ARC loans are interest-free to the borrower, carry a 100 percent guaranty from the SBA to the lender, and require no fees paid to SBA. 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.

 

The best candidates for ARC loans are small businesses that in the past were profitable but are currently struggling, yet have been making loan payments or are just beginning to miss loan payments due to financial hardship.

 

ARC loans are made by commercial lenders who are SBA participants.

[Guest SBA.gov]

ARC loans are not designed for start-up businesses.

 

ARC loans are designed to help businesses experiencing immediate financial hardship for reasons such as:

 

* Loss/reduction of customer base

* Increase in cost of doing business

* Loss/reduction of working capital and/or loss/reduction of short term credit facilities

* Inability to restructure existing debts due to credit restrictions

* Loss/reduction of employees (intellectual capital)

* Loss/reduction of major suppliers (major suppliers out of business)

[Guest Nancy_*]

Your small business must be an established business, have financial statements demonstrating it was profitable in one of the past three years, and be able to project sufficient cash flow to meet current and future loan payments over a two-year period from loan approval. If your business does not meet these criteria, you can discuss your eligibility with your lender.