Entrepreneur News

The U.S. Small Business Administration has begun accepting applications for America's Recovery Capital, or ARC, loans.

ARC loans provide up to $35,000 to existing small businesses for use as a "bridge" to keep operating during the recession, the announcement said. Like other SBA-backed loans, the ARC loans will come from participating commercial lenders, not directly from the federal agency.

The loans are available to established, viable, for-profit small businesses, the announcement said. The loans will be disbursed over a period of up to six months, and repayment by the borrower does not begin until 12 months after the final disbursement. The loan principal will be paid back during a period of five years.
SBA will pay the interest on ARC loans to the lenders, at a variable rate of prime plus 2 percent, the announcement said. There are no SBA fees associated with the loans.

More information on ARC loans is available at www.sba.gov.