Many local small businesses may soon be eligible for interest-free loans under a new program created by the American Recovery and Reinvestment Act (ARRA), U.S. Rep. Jay Inslee (D-Wash.) announced recently. The newly launched “America’s Recovery Capital” (ARC) program allows small firms to take out loans of $35,000 to pay down existing business debts. Borrowers pay no interest on the ARC loans and repayment does not begin for one year. The loan program was established through the ARRA, which Inslee voted for and the President signed into law in February. Inslee said the new loans are part of Democrats’ ongoing work to help rebuild the economy.

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