Congressman Gregory Meeks Announces New Small Business Lending Program Under The American Recovery And Reinvestment Act
Press Release
A new small business lending program under the American Recovery and Reinvestment Act will allow small businesses to take out new loans to help with business debts and prevent business closings. This new "America's Recovery Capital" (ARC) program will allow small businesses to take out loans of $35,000 to pay down existing business debts while paying no interest. Borrowers won't be required to make payments until a year after the loan is established.
"There are many small businesses throughout the sixth congressional district that have been going through extreme hard times during this economic downturn. This program will allow small businesses to take out interest-free loans to allow entrepreneurs to pay their bills and retain employees while the economy is recovering," said Congressman Meeks.
In order for small businesses to qualify for the ARC loans they must demonstrate that they are experiencing immediate financial hardship. The loans will be created by commercial lenders and can be used for payments of principal and interest for credit card debts, mortgages, lines of credit, balances due to suppliers, vendors and utilities. In addition, the program increases the percentage of a loan that a small business can guarantee which makes SBA-backed loans more affordable and provides the necessary tools to unfreeze the small business credit markets.
"Small businesses provide much of our nation's jobs and during this economic crisis too many have suffered. This program will allow small business to not only get out of debt and prevent bankruptcy, but allow entrepreneurs to obtain more affordable loans and have better access to capital, said Congressman Meeks.
To apply for ARC loans, businesses should visit their local SBA-approved small business lenders. The loans will be available through Sept. 30, 2010, or until appropriated funding runs out. Additional information about the ARC loan program is available at http://www.sba.gov/recovery/arcloanprogram/index.html
Now serving in his sixth full-term, Meeks was elected to the House on February 3, 1998. Representing New York's Sixth Congressional District in the United States House of Representatives, Meeks' district covers all towns of Southeast Queens, Far Rockaway and Howard Beach. He is a member of the House Committee on Financial Services and the Committee on Foreign Affairs. Congressman Meeks is the Chairman of the International Monetary Policy & Trade Subcommittee of the House Financial Services Committee. He is a Member of the Congressional Black Caucus (CBC), New Democrats Coalition and the Democratic Leadership Council (DLC). He serves as the Co-chair of the Malaysia Caucus, Services Caucus, Dialogue Caucus, OAS Caucus and the Middle East Economic Partnership Caucus.
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