According to details of the ARC loan program, which were recently released by the US Small Business Administration, ARC loans are targeted at existing small businesses. The purpose of the program is to provide "an immediate infusion of capital to small businesses to assist with making payments of principal and interest on existing debt. on existing, qualifying small business loans for up to six months." According to the SBA, the loans "will allow borrowers to redirect cash flow from making loan payments to investing in their businesses, to help sustain the business and retain jobs. For example, making loan payments on existing loans with proceeds from an ARC loan can allow a business to focus more funds on core operations, such as buying inventory or making payroll. "

According to the SBA, the best candidates for ARC loans are small businesses that have been profitable in the past, have been keeping up with debt payments, but are just starting to struggle to do so. Proceeds of loans made under the ARC program will be provided over a 6-month time period. Repayment is deferred for 12 months, and can be extended for up to 5 years.

ARC loans, which are 100 percent guaranteed by the U.S. government, will not be provided directly through the SBA. Instead, they'll be made by commercial lenders that are SBA participants.

To apply for an ARC loan you'll need to contact a local bank or lending institution that participates in the SBA lending program. If you don't know how to find a lender that participates in the SBA program, contact SBA partners linked from this page. For additional information, see the ARC loan FAQ sheet. (PDF)