American Recovery and Reinvestment Act (ARRA) helped to unlock the small business lending market and also to increase the capital flowing to America’s small businesses by giving $730 million to SBA. As a result of success of these programs, ARRA continued some program throughout May and the SBA also received an additional $305 million because of the success.
Till date, SBA has been implementing programs for all of the SBA Recovery Act funding about $750 million and in December, February, March and April for the agencies lending program which was about an additional $305 million which included:
- For borrowers on 7(a) loans and for borrowers and lenders on 504 loans elimination and reduction of fees.
- Increase up to 90 percent guarantee on 7(a) loans from 75 or 85 based on the loan size.
- Assistance was provided for struggling small-Business by introducing a new ARC loan program. This program provides no interest, deferred repayment loans up to $35,000 to viable businesses which will in turn help them make debt payments.