LoanCentral's Real Estate Lending Blog

This loan is available through SBA (Small Business Administration) and is actually a part of the Economic Recovery Act. The new loan program is called ARC (For America's Recovery Capital), is an interest-free, deferred payment loan of up to $35,000.

One of its intended uses is to help businesses get out from under ruinous debt. The important note here is that the SBA recently clarified Real Estate agents qualify for this new program.

Thus, if real estate practitioners have maxed-out business credit cards (it has to be business-related debt; personal debt won't qualify), they can pay that debt off with the far-more attractive SBA loan. SBA's two flagship loans, known as the Section 7(a) and Section 504 loans, are also open to individuals.

On the 7(a) loans, the SBA says, "To assist small businesses during the economic downturn, the American Recovery and Reinvestment Act authorizes SBA to temporarily reduce or eliminate loan fees for borrowers . . . and raises the loan guarantee from the current level to 90 percent."

Check with your local bank to see if they participate in the SBA program...