Federal small-business lending plan off to slow start : Interest-free loan program is part of stimulus package

The Baltimore Sun reports:

Ten thousand interest-free loans are expected to be made to small businesses under a new federal program launched in June, but so far many banks aren't participating. Loans are trickling out with only a half-dozen made in Maryland.

The goal of America's Recovery Capital loan program, part of the government's economic stimulus package, is to assist viable, but temporarily struggling, small businesses by offering them interest-free loans of up to $35,000 with lenient repayment terms. Banks started accepting applications for the government-backed loans June 15.