Congressman Jerry McNerney (D-Pleasanton) announced today that interest-free loans are now available to many small businesses from the American Recovery and Reinvestment Act, commonly referred to as the stimulus package.
"Small businesses are the engine that drives our economy," McNerney said. "Unfortunately, too many of our local employers are struggling to make ends meet right now. These loans are intended to help profitable small businesses make it through these tough times."
With the launch of the "America's Recovery Capital" (ARC) program, small businesses can apply for loans of up to $35,000 to pay down existing business debts. Overseen by the Small Business Administration, this program is intended to provide an infusion of capital to businesses that can demonstrate past profitability but are experiencing financial hardship due to the economic downturn.
McNerney said that recipients of ARC loans will be able to use these six month, interest-free funds to pay off debt such as credit card obligations, mortgages and balances due to suppliers and vendors. Repayment of ARC loans will be deferred for one year after the last disbursement and can extend up to five years.
These loans will be available through Sept. 30, 2010, or until funding is no longer available. For more information, McNerney said businesses should visit the Small Business Administration online at www.sba.gov or contact their local SBA office. The Sacramento office of the SBA can be reached at (916) 735-1700 and the San Francisco office can be reached at (415) 744-6820.