Concrete Industry Insider - August 2009

SBA Launches ARC Loan Program
Small businesses suffering financial hardship as a result of the slow economy may be eligible to receive temporary relief to keep their doors open and get their cash flow back on track.

Beginning on June 15, the U.S. Small Business Administration (SBA) started guaranteeing America's Recovery Capital (ARC) loans. ARC loans are deferred-payment loans of up to $35,000 available to established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing qualifying debt. ARC loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.

As part of the Recovery Act, the ARC program was created as a no-interest, deferred payment loan to help small businesses that have a history of good performance but, as a result of the tough economy, are struggling to make debt payments.

ARC loans will be disbursed within a period of up to six months and will provide funds to be used for payments of principal and interest for existing, qualifying small business debt including mortgages, term and revolving lines of credit, capital leases, credit card obligations, and notes payable to vendors, suppliers and utilities. Repayment will not begin until 12 months after the final disbursement. Borrowers don't have to pay interest on ARC loans. After the 12-month deferral period, borrowers will pay back the loan principal over a period of five years.

ARC loans will be made by commercial lenders, not SBA directly. For more information on ARC loans, visit www.sba.gov.

Online calculator computes potential tax savings for new equipment buyers
New Holland Construction and Kobelco Construction Machinery America have launched an online tool that makes it easy for new equipment buyers to calculate their potential savings through the Federal Government's extended 2009 tax incentives. Possible benefits include, amongst others, the 50 Percent Bonus First Year Depreciation as well as the expanded Section 179 Expense Election, which allows companies to expense up to $250,000 in equipment purchases as long as they don't spend more than $800,000 during the tax year. The tool also includes a feature that allows buyers to compare different financing options available to them.

New Holland Construction and Kobelco America's online calculator, provided by CNH Capital, can be accessed at www.newholland.com as well as www.kobelcoamerica.com.

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