SBA ARC loan $35,000 Stimulus - America's Recovery Act

To our valued clients:
 
I recently met with Greg Callender of Pace Universities Small Business Development Center. The center is funded by the SBA and offers free consultation services to small businesses looking to get SBA loans. They are completely funded by the SBA and do not receive commissions for the loans they help coordinate or referrals they give to banks.
 
In particular we discussed the new ARC Loan the SBA is offering as part of the stimulus package. The loan is for small business owners who have installment loans from banks, lines of credit, business credit cards, and personal credit such as home refinancing and personal credit cards which were used to pay for business expenses (the burden of proof is on you.) The SBA loan pays the minimum payment on the existing loans for six months for up to $35,000. During the six month period no payments are due and no interest is accrued. The six month period is then followed by a 12 month deferment period in which no payments are due and no interest is accrued. Upon completion of the 12 month deferment period the loan goes into repayment over 5 years with no interest.
 
The requirement of the America’s Recovery Capital Program is as follows:
 
·         $35,000 maximum loan amount; $5,000 minimum loan amount
·         Loan proceeds are used to pay 6 months of payments on existing business debt
·         Business must be in existence for a minimum of 2 years; start-up businesses are not eligible
·         1 loan per borrower
·         6 month advance period followed by 12 month deferment period on principal payments and up to 5 year repayment period
·         SBA will pay interest for entire period
·         Business must be profitable for at least 1 of the previous 2 years
·         Proof of sufficient cash flow to meet current and future loan payments over the next 2 years
·         Additional Documentation required-refer to the ARC Program checklist
·         Funds will not be advanced directly to the customer
·         Doc Prep will provide special instructions on how payments will be made to vendors
 
If you are interested in this loan, or any other of the many loans guaranteed by the SBA please reach out to Greg. Again all of the services offered by the Small Business Development Center at PACE University are FREE:
 
Gregory D. Callender
Business Consultant
Small Business Development Center
PACE University
163 William Street, 16th Floor
New York, NY 10038
Phone: 212.618.6659
Fax:     212.618.6669
gcallender@pace.edu