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What loans/debts are “qualifying” and eligible to benefit from ARC? Can the proceeds be used to make payments on another loan?

  • The only eligible purpose for use of ARC loan proceeds is to make periodic payments of principal and interest on qualifying small business loans.
  • Small business loans/debts qualifying and eligible for assistance with ARC loans include:
    • Secured & unsecured conventional loans (mortgages, term and revolving lines of credit)
    • Capital leases
    • Notes payable to vendors/suppliers/utilities
    • Community Development Company (CDC) Loan Program (504) first mortgage loans
    • Credit card obligations for business purposes
  • ARC loans can not be used to make payments on another SBA-guaranteed loan, with the exception of loans made with an SBA guaranty after Feb. 17, 2009.
     

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