Beginning on June 15, 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 their principal and interest payments on existing qualifying debt. ARC loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.

These $35,000 guaranteed loans are targeted to businesses suffering financial hardship due to the slow economy.

• The ARC program will provide a deferred-payment, no-interest loan of up to $35,000 for short-term help to make their principal and interest payments on existing, qualifying debt.

• A viable small business is one that has a history of good performance that is beginning to struggle with making loan payments, but can reasonably project that it can get back on track with the infusion of ARC loan funds and the benefit of deferred payments.

• Qualifying loans/debts eligible for assistance with ARC loans include the following:

o Secured & unsecured conventional loans (mortgages, term and revolving lines of credit)
o Capital leases
o Notes payable to vendors/suppliers/utilities
o Development Company Loan Program (504) first mortgage loans
o Credit card obligations
o Loans made with an SBA guaranty after February 17, 2009

• ARC loans will be made by commercial lenders and carry a 100 percent SBA repayment guarantee. The loans will have no SBA fees. Existing SBA lenders are eligible to make ARC loans.

• Approved ARC loans will disburse funds to be used for payments of principal and interest for up to six months for existing, qualifying small business loans.

• The loans will be disbursed over the course of six months, followed by 12 months during which no repayment is required. After a 12-month deferral period, the borrower will pay back only the ARC loan principal over a period of up to five years. No repayment of interest is required.

Date:  June 16, 2009

Time: 6:00 – 8:00 pm
Location: College of Business Building – Room 147
Fee: FREE!

This seminar is intended for those not yet in business. It covers topics including registering a business name, licenses or permits, obtaining a tax ID number, forms of insurance, recordkeeping, choosing a legal form of ownership, tax issues, and how to compute a break even point.

This event is free and open to the public. Seating is limited, registration is required.

All seminars will be held in the College of Business Building on the Illinois State University campus unless otherwise noted. An email confirming your registration and listing the exact classroom number will be sent within 1 business day of your registration.

Deadline for registration is two days prior to the seminar. If minimum enrollment is not met two days prior to seminar date, the class will be cancelled and registrants will be notified.

Note: To register for any fee-based seminars, please call the Illinois Small Business Development Center at 309-438-3610 or register on-line at www.sbdc.ilstu.edu

Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact the Illinois Small Business Development Center at 309-438-3610 to request any accommodations.

This Program has been developed through a partnership between the U.S. Small Business Administration, the Department of Commerce and Economic Opportunity and the Illinois SBDC at Illinois State University as a service to Illinois small businesses. The funding is not an endorsement of any products, opinions, or services. All funded programs are extended to the public on a non-discriminatory basis. For further information or to make appropriate arrangements if you require special accommodations, please contact the center two weeks in advance.