Orange County Register

Small businesses suffering recession-related financial woes may qualify for deferred-payment, interest-free loans of up to $35,000 to stay in business.

Starting June 15, the U.S. Small Business Administration will guarantee 100% of these America’s Recovery Capital loans. The SBA won’t charge fees either.

The money must be used to pay existing debt including mortgages, term and revolving lines of credit, capital leases, credit card bills and notes to vendors, suppliers and utilities.

“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 Mills, who announced to new loans at the start of National Small Business Week.  “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.”

ARC loans will be disbursed over a six-month period and repayment will not begin until 12 months after the final disbursement.  Borrowers can repay the loan principal over five years.

ARC loans will be made by commercial lenders.

If you  have a resource, strategy or tip to help small businesses, send it to me at jnorman@ocregister.com. If I use it, I’ll give you credit and link to your web site.

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