“The collapse of financial markets makes it increasingly difficult for small businesses to receive payroll loans, expand inventories, or grow in ways that create new jobs,” said Lt. Governor Barbara Lawton. “These expanded SBA programs reinvest in small business prosperity by helping them access capital immediately and at cheaper rates. I am here today to urge struggling local businesses to talk to their lending institutions about these new options.”

Authororized by the American Recovery and Reinvestment Act, new appropriations enhance existing SBA loan offerings. Changes include temporarily eliminating up-front fees on short-term working capital loans (increasing the guaranty to 90%) and on fixed asset, long-term larger loans; expanding funding for the SBA microloan program through September 30th, 2010; and increasing the surety bond guarantee program for large construction projects from a maximum of $2 million to $5 million. 

Lt. Governor Lawton also announced today that America’s Recovery Capital (ARC) Business Stabilization Loans will become available June 15^th for financially-vulnerable businesses in need of temporary relief to keep their doors open. This temporary SBA program will provide deferred-payment, interest-free loans of up to $35,000 to viable small businesses that need help making payments on an existing loan for up to six months. The ARC loans, which will be distributed directly by commercial lenders, are 100 percent guaranteed by the SBA and have no SBA fees associated with them.