News Newsletter September 2009 Small Business Association Loan Process
Small Business Association Loan Process
The Small Business Association (SBA) offers loan programs and counseling to help small businesses. Go to www.sba.gov/idc/groups/public/documents/mn_minneapolis/mn_resourcegruide.pdf for the Minnesota resource guide.
One loan option is new. Beginning June 15, 2009, 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 principal and interest payments on existing qualified debt. ARC loans are interest-free to the borrower, 100 percent guarantreed by the SBA, and have no SBA fees associated with them.
ARC loans will be dispersed within a period of up to six months. Repayment will not begin until 12 months after the final disbursement. After the 12-month deferral period, borrowers will pay back the loan principal over a period of five years.
ARC loans will be made by commercial lenders, not the SBA directly. For more information on SBA loans, visit www.sba.gov.
Locally, SCORE- MN.org offers seminars and advice on running a small business and steps to take to obtain a small business loan. Go to http://score-mn.org/main.htm for local chapters and listings for small business classes in your area. To request free counseling go to http://score-mn.org/form_641_request.php.
