Some relief will be coming down the pipeline for small businesses struggling with financial hardship during the recession.
The U.S. Small Business Administration’s America Recovery Capitol (ARC) loan program will begin offering up to $35,000 in zero-interest loans on Monday for small, viable businesses suffering “immediate financial hardship.”
Payments on the loan will be deferred for one year.“To defer the payments for a year could really make the different between success and failure,” said Dr. Jackie Di Pofi, director of the Small Business Development Center at Auburn University.
Approximately $350 million in loans will be available from the SBA.
ARC loans will be offered by some SBA lenders for as long as funding is available or until Sept. 30, 2010, whichever comes first.
“The message is ‘don’t wait,’ ” Di Pofi said. “$350 million is a drop in the bucket.”
The primary function is to get small businesses caught up financially, whether that’s on bills, rent or payment of other loans.
“I consider it a survival loan program,” she said.
Di Pofi said those interested in the loan should contact their banks.
Any small business owners with questions can contact the Small Business Development Center at AU at 334-844-4220.
Small businesses are not the only one’s who are getting help. Training sessions on the ARC loan program will be offered to banks as well.
Lender training, which will be conducted via Ready Talk on the phone and Internet, will be offered to banks.
Bank lenders can call 866-740-1260 for phone training or go to www.readytalk.com for web training.
The access code for both the telephone and Internet is 2770106.
Lender training will be from from 8:30 to 10 a.m. (EST) Monday.
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