U.S. Rep. Laura Richardson, D-Long Beach, announced today that small businesses in her 37th District are eligible for interest-free loans tied to the federal stimulus package.
America's Recovery Capital program, or ARC, allows qualifying small firms to take out loans of up to $35,000. The loans can be used to pay down business debts.
Borrowers do not need to pay interest on the ARC loans and repayment plans do not take effect for one year. Tied to the economic recovery package, the loan program was approved in February by Congress and signed by President Obama. ARC loans became available on Monday.
"Our small businesses are the backbone of our local economy, and it is imperative that we support them during this difficult period," Richardson said in a prepared statement. "One of the best ways we can help small businesses is to provide access to capital, which is why this new loan program is so important."
To qualify for ARC loans, small firms must document immediate financial hardship tied to the recession, but must otherwise be deemed viable by the Small Business Administration, or SBA, according to Richardson's office.
Loans will be made by commercial lenders and can be used for principal and interest payments for existing, qualifying small business debts, such as credit cards, mortgages, lines of credit, and balances due to suppliers, vendors and utilities.
"Small businesses are our nation's most reliable job creators, creating seven out of ten new jobs," said Richardson, whose district includes most of Long Beach, Signal Hill and Compton and Carson. "To get our economy back on track, I will work with our local chambers and municipal small businesses to make sure that they are able to grow and continue investing in our communities."
To apply for ARC loans, businesses should write the Small Business Association, Los Angeles District Office, 330 North Brand, Suite 1200, Glendale, Calif. 91203, or call 818.552.3215.
