The ARC Loan can even be used to pay off a Home Equity Line of Credit (HELOC) if the loan, or credit card obligation, was for business purposes.

Eligibility Requirements.

1. Established For-profit small business;
2. Have financial statements demonstrating the business was profitable in at least one of the past three years;
3. Have financial statements, or business plan, that can project sufficient cash flow to meet current and future loan payments over a two-year period from loan approval;
4. Have qualifying loans such as credit card obligations for the business, capital leases, promissory notes payable to vendors/suppliers, or other small business loans that do not have a guarantee from the SBA; and
5. Be able to show a present financial hardship such as: (a) declining sales and/or revenues; (b) difficulty making loan payments on current debt; (c) difficulty paying employees; (d) difficulty purchasing materials, supplies, or inventory; and/or (e) difficulty paying rent or other business operating expenses.

How it Works.
If you qualify for the loan, payments will be deferred for a 12-month period, after which the borrower will be required to pay back the loan principal over a 5 year period. That’s a 5 Year Interest Free Loan!

Contact your lender as soon as possible. These are 100% Interest Free Loans up to $35,000. They will only be available as long as money remains available, or until September 31, 2010 (whichever occurs first).