Thousands of small businesses will receive debt relief – is it enough?

The Small Business Administration is handing out money. But not everyone gets some.

The government agency will start passing out loans to debt-stricken small businesses June 15, under the American Recovery Capital program. An estimated 10,000 deferred-payment loans will be authorized, but some critics are skeptical that they’ll make much of a difference.

With an estimated 30 million small businesses in the country, this just might not be a big enough life boat. The Wall Street Journal (via SmartMoney) summed up the pros and cons of the loan program in a story this week.

In the SBA’s own words: “SBA’s America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability. Each small business is limited to one ARC loan.”

The application process is detailed on the SBA’s Web site. But the gist of it all is this: To qualify, businesses must have fewer than 501 employees, must be at least two years old and should be able to demonstrate that sales or revenues have declined by 20 percent.

If you’re a Snohomish County business owner thinking of applying to the program, send me an email. We might feature your business in an upcoming story.