In case you haven’t heard about an ARC loan, or if you have but are confused on what it does and how it relates to small business owners, here are some guidelines to help you understand what it was created for, who qualifies for it and whether you can count on it at all.

Before defining what an ARC loan or “America’s  Recovery Capital” loan is, you need to understand if you’re a small business owner that it could take a frustratingly long period of time to secure it, so if you immediately need the loan, it may not be available within the time frame you’re counting on, so you want to be careful not to put all your financing eggs in one basket if that’s what you’re thinking.

So with that in mind, the “America’s Recovery Capital,” ARC loans were developed to provide up to $35,000 for small business that need a temporary boost to make payments on current loans, which includes business credit card debt. The program will run through September 30, 2010, or until funds for the program run out.

This isn’t for business startups or relatively new businesses, as you must have been operating your business for two years to even be considered for an ARC loan. And of those two years, the business must have had one of those years turn a profit, which eliminates a lot of businesses. There also must be proof of actual financial hardship, and not just the desire to get a loan to build the business up; also eliminating a lot of businesses.

If your business does qualify, an ARC loan can be used to pay for six month of existing business debt, with a year given before you have to start paying off the loan. The government covers the interest on the loan so a business only has to pay the principle.

Another thing to consider is larger banks have been slow to get on board with the program because of the changes they need to manage it across multiple areas, and some large banks have opted out of using the program altogether, saying their existing SBA programs should be enough to take care of small business needs. So your best bet is to go to a smaller bank, which could have the program, and also possibly get your loan to you quicker than slower moving large banks.

One exception could be Wells Fargo (NYSE: WFC), which has already been giving out ARC loans. Bank of America (NYSE:BAC) has just gotten on board with the program, but hasn’t incorporated it into their system yet, and U.S. Bank (NYSE:USB) has decided not to partake in it.

So the first step a qualified small business must do is call around to see which local and regional banks or branches are even offering an ARC loan before thinking on whether it can be counted on in the very short term.