Press Release

May 18, 2009

U.S. Senator Benjamin L. Cardin (D-MD), a member of the Senate Small Business and Entrepreneurship Committee, today commended the Small Business Administration (SBA) for establishing a new loan program to help small businesses get cash flowing again during this economic downturn.


Beginning on June 15, the SBA will start guaranteeing America’s Recovery Capital (ARC) loans.
  ARC loans are deferred-payment loans of up to $35,000 available to established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing qualifying debt.
  ARC loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.


“Small businesses owners need liquidity to continue to operate and today’s announcement by the SBA to begin offering temporary loans to struggling entrepreneurs – with no interest, no fees and one year to start paying back the loan – will give small businesses the immediate help they need to keep their doors open,” said
Senator Cardin.


 “These ARC loans can provide the critical capital and support many small businesses need to make it through these tough economic times,” said SBA Administrator Karen G. Mills.
  “Together with other provisions of the Recovery Act, ARC loans will free up capital and put more money in the hands of small business owners when they need it the most. This will help viable small businesses continue to grow and thrive and create new jobs in communities across the country.”


As part of the

American Reinvestment and Recovery Act
, the ARC program was created as a no-interest, deferred payment loan to help small businesses that have a history of good performance, but as a result of the tough economy, are struggling to make debt payments.


ARC loans will be disbursed within 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.
  Repayment will not begin until 12 months after the final disbursement.
  Borrowers don’t have to pay interest on ARC loans.
  After the 12-month deferral period, borrowers will pay back the loan principal over a 5-year period.


ARC loans will be made by commercial lenders, not SBA directly.
  For more information on ARC loans, visit