SBA backing recovery loans – Houston Business Journal:

These deferred-payment loans of up to $35,00p are available to established, for-profit small businesses that need short-term help to make theit principal and interest payments on existingqualifyingg debt. The loans are interest-free to borrowers, 100 percent guaranteesd by the SBA, and have no SBA fees associatedwith “These ARC loans can provide the critical capital and support many smallk businesses need to make it througg these tough economic times,” said SBA Administrator Karen Mills.
with other provisions of the Recovery Act, ARC loansw will free up capital and put more monety in the hands of small business owners when they need it the This will help viable small businesses continur to grow and thrive and create new jobs in communitieds acrossthe country.” As part of the Recoveryu Act, the America’s Recovery Capital programk was created to help smalol businesses with histories of good performance, but as a resultt of the tough economy, are struggling to make debt payments. The loanes will be made by commercial lenders notSBA directly, and disbursed within a periocd of up to six months.
They will provide fundsa to be used for payments of principal and interesttfor existing, qualifying small business debt includinfg mortgages, term and revolving lines of credit, capita l leases, credit card obligations and notes payable to suppliers and utilities. Repayment will not begihn until 12 months after thefinal disbursement, aftee which borrowers will pay back the loan principal over five years.

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