[Federal Register Volume 74, Number 110 (Wednesday, June 10, 2009)]
[Rules and Regulations]
[Page 27426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-13687]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 120


American Recovery and Reinvestment Act: America's Recovery 
Capital (Business Stabilization) Loan Program

AGENCY: U.S. Small Business Administration.

ACTION: Notice of ARC loan program interest rate.

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SUMMARY: SBA has published an interim final rule implementing section 
506 of the American Recovery and Reinvestment Act of 2009. The rule 
establishes a temporary program to guarantee loans to viable small 
business concerns that have a qualifying small business loan, and are 
experiencing immediate financial hardship. Loans made under this 
program, referred to as ``America's Recovery Capital Loan Program'' 
(ARC Loan Program) can be used to make principal and interest payments 
on existing qualifying small business loans. ARC Loans are interest 
free to the borrower with SBA making the interest payment on the loan 
to the lender. As part of the interim final rule, SBA provided that the 
interest rate would be published in the Federal Register. This notice 
establishes the initial interest rate for ARC Loans at prime plus two 
percentage points.

DATES: The interest rate is effective as of June 10, 2009.

FOR FURTHER INFORMATION CONTACT: Janet A. Tasker, Office of Capital 
Access, Small Business Administration, 409 Third Street, SW., 
Washington, DC 20410 or via e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background Information

    The American Recovery and Reinvestment Act of 2009 (the Recovery 
Act), Public Law 111-5, 123 Stat. 115, was enacted on February 17, 
2009, to, among other things, promote economic recovery by preserving 
and creating jobs, and assisting those most impacted by the severe 
economic conditions facing the nation. SBA is one of several agencies 
that will play a role in achieving these goals. SBA received funding 
and authority through the Recovery Act for several actions to help 
small business lending, including authority to establish a new 
temporary loan program to help troubled businesses.
    SBA has published in the Federal Register an interim final rule 
establishing a temporary program to guarantee loans to viable small 
business concerns that have a qualifying small business loan, and are 
experiencing immediate financial hardship. Loans made under this 
program, referred to as ``America's Recovery Capital Loan Program'' 
(ARC Loan Program) can be used to make principal and interest payments 
on existing qualifying small business loans. ARC Loans are interest 
free to the borrower with SBA making the interest payment on the loan 
to the lender. As part of the interim final rule, SBA provided that the 
interest rate for ARC Loans would be published in the Federal Register.
    This notice establishes the interest rate for ARC Loans. SBA will 
pay SBA lenders a variable rate of interest on ARC Loans. The interest 
rate SBA will pay on an ARC Loan is the prime rate in effect on the 
first business day of the month, as printed in a national financial 
newspaper published each business day, plus two (2) percentage points.
    The initial interest rate for ARC Loans will be based on the prime 
rate that was in effect as of the first business day of the month in 
which SBA received the loan application. The interest rate will be 
adjusted on the first business day of each month thereafter, using the 
prime rate in effect on such date.
    Any future change to interest rates paid by SBA on ARC Loans will 
be published in the Federal Register.

Eric Zarnikow,
Associate Administrator, Office of Capital Access.
[FR Doc. E9-13687 Filed 6-8-09; 4:15 pm]
BILLING CODE 8025-01-P