First Federal helps businesses recover with SBA-ARC loans

June 29, 2009 06:31 pm

— The United States Small Business Administration is implementing a special, temporary loan program to help struggling small businesses. SBA is offering America's Recovery Capital Loan Program (ARC) to help small businesses recover. First Federal Bank of Florida is an approved SBA lender and can help businesses that qualify for these deferred-payment loans to make payments on existing debt.
"ARC loans are designed to give viable small businesses facing immediate financial hardship some temporary financial relief so they can keep their doors open and get their cash flow back on track,” said Robert Turbeville, First Federal director of sales and senior lender.
ARC loans are interest-free to the borrower, have deferred payments for 12 months, and have no SBA fees associated with them.
ARC loans can provide up to $35,000 in short-term relief for small businesses facing financial hardship. ARC loans will be used to make up to six months of principal and interest payments on qualifying loans for existing for-profit small businesses. Disbursement period (up to six months) is followed by 12 months with no repayment of the ARC loan principal, followed by a repayment period of up to five years. ARC Loans can be applied for through First Federal Bank for a limited time and availability.
Small businesses that would benefit from these loans are businesses that were previously profitable, but are having difficulty making payments on existing debt, or having difficulty covering normal operating expenses, such as payroll, or purchasing materials and supplies. First Federal President Keith Leibfried explained, "ARC loans may be used to pay on mortgages, secured and unsecured loans, lines of credit and credit cards if the debt was used for eligible business purposes under the program. We are proud to be able to offer affordable ARC loans to our customers and local community businesses that need immediate financial help." ARC loans offer short-term relief to help small businesses. The ARC application process is handled through the local lender and approved by the SBA. First Federal Bank of Florida is an Equal Housing Lender and Member FDIC.