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.