The Small Business Administration has announced a new loan program to provide temporary financial relief to small businesses suffering immediate financial hardship so they can keep their doors open and get their cash flow back on track.

America's Recovery Capital, or ARC, loan program will start June 15 and offer small businesses up to $35,000 to pay off existing loans. The program was funded as part of the $787 billion federal stimulus bill earlier this year.

The 100% SBA-guaranteed ARC loans are intended to help businesses make principal and interest payments on existing, qualifying debt or loans. Borrowers will not have to make any payments for the first year and will have an additional 5 years to pay back their loan. Only one loan per applicant is allowed, and potential borrowers must not have any existing SBA loans.

To qualify, a business must have evidence of profitability or positive cash flow in at least one of the past two years and  be able to show a change in its financial condition, "such as declining sales, frozen credit lines, difficulty meeting payroll, paying rent, difficulty making loan payments or perhaps something else," according to the SBA.

ARC loans are available through SBA-approved lenders as long as funding is available or through Sept. 30, 2010, whichever comes first.

For more about ARC loans go to www.sba.gov/.