Archive for the ‘Lending’ Category

ARC Loans for Small Businesses

August 18, 2009

In order to provide small businesses with temporarily relief from a slow economy, the American Recovery Capital or ARC Loan program was designed.

This program went into effect on June 15th and provides a deferred payment loan of up to $35,000.  The loans will be used to make six months of principal and interest payments.  The funds can be used to pay any business debts such as lines of credit, secured and unsecured loans, credit card debt and even mortgages. 

After the six month disbursement period it is followed by 12 months with no repayment of the ARC principal.  This is followed by a repayment period of 5 years.  The SBA pays all the monthly interest to the bank.

The loans will continue as long as their are funds available or through September 30, 2010 whichever comes first. 

For more information and eligibility requirements see the following links.

http://www.sba.gov/recovery/arcloanprogram/index.html

Advertisements

Six Tips for Coping with Tougher Loan Covenants

April 24, 2009

Via the AICPA Journal of Accountancy

In this current economic climate, it is well known that credit sources have tightening up (if not completely dried up).  The Journal of Accountancy has six tips to consider before you talk to a lender:

  1. Negotiate and monitor your ratios
  2. Prepare to be audited
  3. Watch out for positive cash flow covenant
  4. Get ready for new rate structures
  5. Be prepared for more stringent “personal guarantees”
  6. Know what’s typical

 

Read the article here for a detailed explanation of each of these helpful hints.