A pair of US senators are touting a Small Business Administration program that will make interest free loans available to qualifying small businesses to get them through 12 months after disbursement. Qualifying small businesses could borrow as much as $35K.
Mary Landrieu (D-LA)., Chair of the Senate Committee on Small Business and Entrepreneurship, and the committee’s Ranking Member Olympia J. Snowe (R-ME) were touting the program, known as America’s Recovery Capital, or ARC, loan program.
Qualifying small businesses must have a good credit history despite their current struggles. The loans will be offered for a six month period starting 6/15/09, will max out at $35K, will carry no interest, and will be 100% guaranteed. Borrowers will not have to make any payment for 12 months after the loan is issued and will have five years to pay it back.
“Many Main Street businesses that have played by the rules are asking when Washington is going to help them, as they watch billions flow to the big banks and financial institutions,” Sen. Landrieu said. “Today’s announcement by the SBA to begin offering temporary loans to struggling entrepreneurs — with no interest, no fees and one year to start paying back the loan — will give small businesses the immediate help they need to keep their doors open.”
“I am pleased that Administrator Mills today announced the implementation of the America’s Recovery Capital, or ARC, loan program,” said Ranking Member Snowe. “This initiative was crafted collectively, between the Senate and House Small Business Committees, to address the message we have heard from numerous businesses across the nation – that in all of our efforts to stabilize our economy, too little attention was being paid to our nation’s small businesses in need of a precious lifeline.”
RBR/TVBR observation: Many broadcasters and their clients qualify as small businesses. This might be worth checking out if a bridge to 2010 would be worth help keep a foundering business above water.