Foster Announces Aid For Small Businesses

Press Release

Today, Rep. Bill Foster (IL-14) announced that small businesses that are experiencing financial hardship may be eligible for interest-free loans under a new program created by the American Recovery and Reinvestment Act, which Foster voted for.

"Small businesses throughout the 14th District have been hit hard by the economic downturn, and need short-term assistance to keep them afloat," said Foster. "These loans will help viable small businesses retain employees and pay their bills, giving them the short-term assistance they need to weather the current economic storm."

The Recovery Act has given the Small Business Administration (SBA) the authority to create a new type of loan. The newly launched America's Recovery Capital (ARC) program allows small businesses to take out loans of up to $35,000 to pay down existing business debts. Borrowers pay no interest on the ARC loans and repayment does not begin for one year.

"Small businesses are the backbone of our economy, and by supporting them in the short-term, we create the conditions necessary to help them to contribute to our economic recovery in the long-term," said Foster.

To qualify for an ARC loan, small businesses must demonstrate that they are viable and are facing immediate financial hardship. The SBA has several categories for determining hardship status, such as loss or reduction of revenue in the preceding year, increase in business costs in the preceding year, changes in operating ratios, loss of working capital or short-term credit lines and/or inability to restructure debt due to recent credit card restrictions.

For questions about ARC loans, call Foster's office toll free at 1-866-324-6128 or the SBA at 312-353-0357. To apply for ARC loans, businesses should visit their local SBA-approved small business lenders. The loans will be available through September 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 .

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