Interest-Free Loans For Small Businesses?

It may sound too good to be true, but it's actually very creditable via the U.S. Small Business Administration. The federal government is, in fact, offering interest-free loans of up to $35,000 to try to keep smaller companies from going out of business.

For businesses that need a lending hand, the SBA is offering the loans with no required payment for 18 months and no interest for more than six years.

They are called ARC loans as part of the federal stimulus package. ARC is an acronym for America's Recovery Capital. There are only 10,000 ARC loans available around the country. That breaks down to only 200 loans per state, making the process extremely competitive.

The loans are also only available to companies that made a profit at least one of the last two years - not start-ups.

The SBA says that businesses interested in the loans should act fast.

For more details, visit: www.sba.gov/recovery/arcloanprogram/index.html or www.arc-loans.com