Small Biz Boost
Stimulus package includes interest-free loans for small businesses.
Monday, June 15, 2009
It takes money to make money, as the old saying goes. But in tough economic times, high-interest loans can cripple small business owners already struggling to stay afloat.
Cue Washington: A new federal program will make $255 million in interest-free loans available to small businesses, according to a press release from the office of Congressman Sam Farr (D-Carmel).
The America's Recovery Capital program, part of the American Recovery and Reinvestment Act passed in February, will allow qualifying companies to borrow $35,000 at zero interest to pay down other business debts. Repayment begins one year later.
Eligible businesses must prove that they're viable, but having tough financial times because of the recession. The loans can be used to pay off credit cards, mortgages and other bills.
“This loan program could help many small businesses on the Central Coast as they continue to struggle with a sluggish economy,” Rep. Farr stated. “This is yet another program in the Recovery Act that aims to boost our economy and give small companies some breathing room. We have to jumpstart our economy and protect our local jobs, and this loan program will help do both.”
The loans will be available through Sept. 30, 2010, or until funding runs out. For info, call the Small Business Administration's Fresno office at 559-487-5791, check out the SBA district website, or visit the loan program page.