Stimulus loans through SBA coming June 15

Washington鈥擳he U.S. Small Business Administration will start guaranteeing economic stimulus loans to cash-strapped small businesses June 15. Loans will be available through Sept. 30, 2010, or as long as funding is available.

“The best candidates for ARC (America’s Recovery Capital) loans are small businesses that in the past were profitable but are currently struggling, yet have been making loan payments or are just beginning to miss loan payments due to financial hardship,” the SBA said.

The 2009 Recovery Act notice posted at www.sba.gov/recovery/arcloanprogram聽says the loan program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship “to help ride out the current uncertain economic times and return to profitability.”

Examples of qualifying loans may include credit card obligations for businesses, capital leases, notes payable to vendors, suppliers and utilities and other loans, the SBA said. The notice provides further information as well as a toll-free telephone number, 1-866-947-8081 Monday through Friday 8 a.m.-9 p.m. ET.

A customer service agent at this number said qualifying dental practices could be eligible for the loans.

ARC loans are interest free to the borrower with SBA making the interest payment to the lender. SBA set the initial interest rate for ARC loans at the prime rate plus two percentage points as of June 10, 2009. Any future rate change will be published in the Federal Register, the official record of government regulatory activity.