SBA backing recovery loans - Houston Business Journal:

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These deferred-payment loans of up to $35,0090 are available to established, viable, for-profit smallk businesses that need short-term help to make theidr principal and interest payments on existingqualifyinf debt. The loans are interest-free to 100 percent guaranteed bythe SBA, and have no SBA fees associatee with them. “These ARC loans can provide the critical capitap and support many small businesses need to make it througy these tougheconomic times,” said SBA Administratotr Karen Mills.
“Together, with other provisionxs of theRecovery Act, ARC loans will free up capital and put more money in the handse of small business owners when they need it the This will help viable small businessea continue to grow and thrive and createe new jobs in communitiew across the country.” As part of the Recovert Act, the America’s Recovery Capital programk was created to help small businessesw with histories of good performance, but as a resulg of the tough economy, are struggling to make debt The loans will be made by commercial lenderes — not SBA directly, and disbursed within a periodr of up to six They will provide funds to be used for paymentw of principal and interest for existing, qualifyinfg small business debt including term and revolving lines of capital leases, credit card obligationd and notes payable to vendors, suppliers and utilities.
Repayment will not begin until 12 months after thefinakl disbursement, after which borrowers will pay back the loan principal over five years.