Small Business Finance News
Small Businesses Looking For Some Help Need To Act Fast
Written by Jenna Weiner
Companies planning to apply for ARC loans need to move quickly. The SBA expects to provide the loans through the summer, but expects to funds to expire some time in August or September.
The Small Business Association's announcement of the America's Recovery Capital loan program came as good news for entrepreneurs and other small businesses. However, according to the Wall Street Journal, companies planning on applying for aid from the program need to do so quickly.
There is a $35,000 cap on the interest-free loans. The SBA planned on offering 10,000 of the loans and has already awarded half of that. Many banks have opted against taking part in the program, while large banks like JPMorgan Chase and Wells Fargo decided to offer the loans.
"We are averaging in the neighborhood of 145 to 150 loans a week, which puts us on track to see funds for the program run out in the August to September time frame," SBA spokesman Jonathan Swain told the Wall Street Journal.
The loans can only be used to pay off existing debt and are awarded solely to companies that demonstrate serious financial turmoil.
If a small business does not qualify for an ARC loan, there are other options available. Banks of all sizes throughout the country have announced increased lending. Huntington Bank announced recently that it will award $360 million to small business over the next few years.
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