Called the ARC (America’s Recovery Capital) loan program, a deferred-payment loan of up to $35,000 made by commercial lenders, not SBA but fully guaranteed by SBA.
ARC loans are to be used for principal and interest payments on existing, qualifying loans including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities. 100% guaranteed by the SBA, there are no SBA or lenders fees. There are no interest charges.
There is a disbursement period of up to six months, followed by 12 months with no repayment of the ARC loan principal. Afterwards, the borrower pays back only the ARC loan principal over five years.
This program was funded by Congress for $255 million. It will only last until all funds are loaned or September 30, 2009, whichever occurs first. See your local bank or these:
Local bank coordinators:
- Key, Jennifer Riggenbacher
- Wells Fargo, Taralee Muhli
- Heritage, Lyn Hamilton
- Columbia, Craig Chance
- US Bank, Eric Allison
- Northwest Commercial, Jay Mayer
- Washington Business Bank, Janie Sacco
- Sterling, Mike Miller
- Twinstar CU, Jim Minder
- Shorebank Enterprise Cascadia, Che Wong
If you need assistance in preparing documents, call Sheree Clark or 253-798-6916 at Pierce County Economic Development Department.