Federal stimulus funds are available for qualified small businesses

Editor’s note: Michelle Stockman works with Little Rock-based Arkansas Capital Corp. to promote entrepreneurship development around the state. Stockman earned a bachelor’s degree from Loyola University-Chicago in communications and fine arts, and earned a master’s in entrepreneurship from Western Carolina University. Her thoughts on business success appear each week on The City Wire.

Talk about the “2009 American Recovery Act,” a.k.a. stimulus package continues to evolve each day. The latest edition to the efforts our leaders in D.C. are making include more efforts to help small businesses.

The one of the more impressive measures to date was creating a small loan fund to help small businesses manage their debt while in this economic crunch. The Small Business Administration (SBA) introduced its America’s Recovery Capital Loan Program loan program on June 15. The funds are on a first come first served basis and will be available until the allocation runs out or until Sept. 30, 2010 (whichever occurs first).

According to the SBA, the America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability. Each small business is limited to one ARC loan.

This loan program will allow small business owners to take out a loan to cover the principal or interest of an existing loan (or loans) for up to six months. This should allow business owners to redirect cash flow to sustain business operations and retain employees.

The ARC loans are interest free to the business owners, may be dispersed over a six month period and require repayment 12 months after the last disbursement of the loan. The loans are interest free, require no fees to be paid and are 100% guaranteed by the SBA (thus making this an attractive option for a lending institution).

The loan is focused on assisting existing small businesses who have found themselves facing financial hardship due to the current economic conditions. This is not a loan for individuals interested in starting a business as business owners will need to qualify to obtain an ARC loan.

Additional information about SBA “2009 Recovery Act” loans and programs are available through the Small Business Administration. Information about the ARC loan program in Arkansas is available through the Arkansas Capital Corporation.
www.accglending.com

Stockman can be reached at [email protected]