Van Hollen Applauds New Business Lending Program

Press Release

Many local small businesses may soon be eligible for interest-free loans under the newly launched "America's Recovery Capital" (ARC) program, created by the Recovery Act. The ARC program allows small firms to take out interest-free loans of $35,000 to pay down existing business debts, and repayment does not begin for one year.

"Small businesses are the backbone of our economy, and they are suffering during this economic crisis. The ARC program gives small business owners and entrepreneurs a chance to get back on their feet, pay their bills, and keep their employees," said Van Hollen. "This program, along with tax relief for small businesses and efforts to unfreeze the credit market, is another way the Recovery Act is helping small businesses and our economy get back on track."

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 existing, qualifying small business debts like credit card obligations, mortgages, lines of credit, and balances due to suppliers, vendors, and utilities. 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.

Source