Finally! An SBA program that has real estate agencies written all over it! Yes, it's a loan package, but it's offered interest-free. I've copied the news release, to provide you with the details, so that I don't misinform you. You'll have to leave me a message this afternoon, because I'm going to apply right now!! Lehrle Kieffer RE/MAX Central 207-551-9258
FOR IMMEDIATE RELEASE
June 15, 2009
CONTACT: Ed Gilman, 202-225-6306
Michaud Announces New Small Business Lending Program
AUBURN, MAINE - Today, Congressman Mike Michaud, a member of the House Small Business Committee, announced that many local small businesses may soon be eligible for interest-free loans under a new program created by the American Recovery and Reinvestment Act (H.R. 1). The newly launched "America's Recovery Capital" (ARC) program allows small firms to take out loans of $35,000 to pay down existing business debts. Borrowers pay no interest on the ARC loans and repayment does not begin for one year. The loan program was established through the ARRA, which the President signed into law in February.
"If we are going to get ourselves out of the current recession, we are going to need healthy small businesses. They are the traditional job creators and their health is necessary for us to have a robust recovery. This new program will help them get by and sustain jobs. With the right amount of breathing room, Maine's struggling entrepreneurs will be better able to play their traditional role as job creators in our economic recovery," said Michaud.
To qualify for the ARC loans, small firms must demonstrate they are experiencing immediate financial hardship due to the economic downturn, but are otherwise deemed by the Small Business Administration (SBA) to be viable. The loans will be made by commercial lenders and can be used for payments of principal and interest for existing, qualifying small business debts like credit card obligations, mortgages, lines of credit, and balances due to suppliers, vendors, and utilities. In addition to the ARC loan program, the ARRA contained other measures aimed at helping small firms access credit. For instance, the new law increases the percentage of a loan that the SBA can guarantee, makes SBA-backed loans more affordable and provides tools to unfreeze the small business credit markets, helping small companies access capital at affordable rates.
To apply for ARC loans, businesses should visit their local SBA-approved small business lenders. The loans will be available through Sept. 30, 2010, or until appropriated funding runs out. Additional information about the ARC loan program is available at http://www.sba.gov/recovery/arcloanprogram/index.html
Comments(1)