Need an interest-free loan to help out your business? According to Nate Kok, Assistant Vice President, at Hometown Bank in Appleton, Wisconsin, the SBA has just finalized the America’s Recovery Capital (ARC) Loan Program.
Whether you are pro or con on all the bailout ideas coming out of Washington, this seems to be a pretty interesting deal. If your business is struggling (lost customer base, saw an increase in costs, or a reduction in working capital or employees) you may be eligible for up to $35,000 in loans.
Here’s the overview:
- The loans are interest-free, with repayment deferred for 12 months.
- Loan payments can be used to make principal and interest payments on existing loans over a six-month period.
- Loans are approved on a case-by-case basis.
- Loans are available from SBA-participating banks.
- Loans will be available until allocated fund are depleted or September 10, 2010, whichever comes first.
The ultimate goal is to take the pressure off your finances and enable businesses to redirect their normal cash flow from loan repayment to investment in their business, such as inventory expansion, covering payroll, etc., Kok said in an email release on May 18.
If you are based near the Fox Valley in Wisconsin, contact Hometown Bank at (920) 731-9025. Otherwise, talk to your own lender for more info.
And if you get a chance, let me know how it goes. — JRI
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