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6/19/2009 |
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Small Businesses Affected by Economic Downturn May Be Eligible for Federal Stimulus Loans |
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Loans are available for small businesses affected by the economic downturn, thanks to a provision in the American Recovery and Reinvestment Act (ARRA), Goleta officials announced today.
"We want to make sure that our local business community has the information and tools they need to be successful in this challenging business climate," said Vyto Adomaitis, Director of Redevelopment, Neighborhood Services and Public Safety for the City of Goleta.
Under ARRA, the American Recovery Capital Program (ARC) authorized $255 million in Small Business Association (SBA) guaranteed loans to help existing businesses struggling with business loan payments because of the economic downturn. The program began June 15 and will continue until September 30th or when funds are depleted, whichever comes first.
Adomaitis continued, "In addition to obtaining more information on this program by visiting the Small Business Administration website, the City of Goleta website has a comprehensive list of resources called "Tools for Businesses" that has information on topics such as a business start-up kit, loan payment calculator, 85 business related online classes, 750+ business books, employer's kit, a directory of sources of capital and more."
The ARC loans must be used to make principal and interest payments on business loans, including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities. Funds cannot be used to pay principal or interest on SBA loans. Loans will be disbursed over six months, with a maximum loan amount of $35,000. Repayment begins 12 months after the last disbursement. Only principal must be repaid; there is no interest. Borrowers have 5 years to repay the principal.
Information provided by Kirsten Z. Deshler, Public Information Officer
805.961.7507; 805.455.9995 (cell)
kdeshler@cityofgoleta.org
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