ARC Loans Now Available

The Small Business Administration is accepting loan applications for a temporary new program called America’s Recovery Capital. These “ARC” loans, which go up to $35,000, are designed to provide a “bridge” for viable small businesses with immediate financial hardship – to keep their doors open until they get back on track. “These ARC loans are another tool in the SBA toolkit which will provide critical support to small businesses struggling to make it through these tough economic times,” said Administrator Karen G. Mills.

ARC loans are deferred-payment loans made by commercial lenders to established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing and qualifying business debt. While the ARC loans are not made by the SBA directly, they are 100% guaranteed by the SBA and have no SBA fees associated with them.

These loans will be disbursed over a period of up to six months and will provide funds to be used for payments of principal and interest for existing, qualifying small business debt including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities. The SBA will pay the interest on ARC loans to the lenders at the variable rate of Prime plus 2%. Repayment will not begin until 12 months after the final disbursement.  After the 12-month deferral period, borrowers will pay back the loan principal over a period of five years.

For more information on ARC loans, as well as all of the other SBA programs for small business, visit or call the SBA Answer Desk at 1-800-U-ASK-SBA or TDD 704-344-6640.