Here is some great information from Teresa Webb at Micro Systems Leasing.  She handles software and hardware leasing for many of our clients:

“The new SBA ARC loan program may help your business meet capital lease obligations!  They will make your loan or capital lease payments for up to $35,000 for 6 months. No fees and payments do not start back for 12 months – and then interest free for 5 years. Check it out the qualifying rules:

“Announcing new SBA ARC loan program that can be used to make payments of principal and interest, including CAPITAL LEASES, on one or more existing, qualifying small business loans for up to six months.

“These loans allow borrowers to redirect cash flow from making loan (or capital lease) payments to investing in their businesses, to help sustain the business and retain jobs. Who qualifies?

• Must be an established, for-profit business with evidence of profitability or positive cash flow in at least one of the past two years.
• Must be evidence to show a change in the financial condition such as declining sales, difficulty meeting payroll, paying rent, difficulty making loan payments or perhaps something else. Here are some examples:
  • Loss/reduction of customer base
  • Increase in cost of doing business
  • Loss/reduction of working capital and/or loss/reduction of short term credit facilities
  • Inability to restructure existing debts due to credit restrictions
  • Loss/reduction of employees (intellectual capital)
  • Loss/reduction of major suppliers (major suppliers out of business)

“The best candidates for ARC loans are small businesses that in the past were profitable but are currently struggling, yet have been making loan payments or are just beginning to miss loan payments due to financial hardship.

“ARC loans are interest-free to the borrower, carry a 100 percent guaranty from the SBA to the lender, and require no fees paid to SBA. Loan proceeds are provided over a six-month period and repayment of the ARC loan principal is deferred for 12 months after the last disbursement of the proceeds. Repayment can extend up to five years.

“You CANNOT beat this deal if you qualify!”

For more information:

Frequently asked questions

SBA ARC Loan Program