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SBA ARC Loans

Program Description  |  DCU Requirements


 Program Description

On June 15, 2009, the Small Business Administration (SBA) announced the implementation of the America's Recovery Capital (ARC) loan program. ARC is a new, temporary program designed to help small businesses located in the United States experiencing short term financial hardship make payments on their existing debt. The program will expire on or before September 30, 2010 or when appropriated funds are exhausted.
ARC loans can be as high as $35,000 and are to be used to make up to six months worth of debt payments on existing business debt. Payments on ARC loans are then deferred for twelve months, with principal only payments required for the remaining term of the loan. Payments are based on a 5 year amortization schedule. SBA will pay monthly interest to the lender on behalf of the borrower. No interest will be charged to the borrower.
In order to be eligible for an ARC loan your business must be:
  • A viable long term (in business at least three years) small business established for profit.
  • Experiencing an immediate financial hardship, namely having difficulty making existing debt payments and/or meeting operating expenses.
  • Able to produce annual financial statements (tax returns) for each of the past three years and interim financial statements for the current year. Financial statements must show that the business has been profitable or had positive cash flow in one of the past two years.
  • Able to produce quarterly cash flow projections for the next two years which show reasonable growth expectations that indicates there will be sufficient cash flow to service current and future debt obligations (including the ARC loan).
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 DCU Requirements

DCU is a certified SBA Lender and eligible to make ARC loans. At this time, DCU will only consider ARC loans to active DCU business members in Massachusetts, New Hampshire, and Rhode Island. If you feel your business would be eligible for an ARC loan or have any questions, please contact Heather Storme at Commercial Lending at 800.328.8797 extension 9031.

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Digital Federal Credit Union
Digital Federal Credit Union
220 Donald Lynch Boulevard
PO Box 9130
Marlborough, MA 01752-9130
508.263.6700 • 800.328.8797
 DCU is an Equal Housing Lender    Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency. Select for more information.
 
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