How Can You Apply for an American Recovery and Reinvestment Act Loan?

The American Recovery and Reinvestment Act or the SBA ARC 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. Each small business is limited to one ARC loan. The SBA will continue the program until September 30, 2010 or until the money runs out.

According to the SBA, ARC loans can be used to make payments of principal and interest, in full or in part, on one or more existing, qualifying small business loans for up to six months. ARC loans provide an immediate infusion of capital to small businesses to assist with making payments of principal and interest on existing debt. These loans allow borrowers to redirect cash flow from making loan payments to investing in their businesses, to help sustain the business and retain jobs.

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