Financing - Entrepreneurs

Financing - Entrepreneurs

Entrepreneurial spirit is strong and vibrant in Arkansas. We offer a number of ways to partner with forward-thinking start-ups who have extraordinary vision and imagination.



Minority Business Loan Mobilization Program

Through the Minority Business Loan Mobilization Revolving Fund (The Loan Fund) the AEDC Minority Business Division guarantees up to 90% of loans (A) from $10,000 to $100,000; (B) made by the Lender to a Borrower, for the amount and purpose and term which have been approved specifically by the AEDC in a written loan guarantee authorization (the "Authorization") issues with the respect to each loan that complies with Act 1428 of 2009; and (C) has compliance by the Lender with the terms and condition of this Agreement.

The Loan Fund must be used to promote the development of minority business enterprises in the state, increase the ability of minority business enterprises to compete for state contracts, and sustain the economic growth of minority business enterprises in the state.

Eligible Applicants

Minority Business Owner(s) must be a U.S. Citizen, a permanent Arkansas resident with at least 51% ownership in the company, and a member(s) of any of the following minority group: as stated by (Act 1222 of 2009).

  • African American
  • American Indian
  • Asian American
  • Hispanic American
  • Pacific Islander American
  • Service Disabled Veteran

Use of the Proceeds

The Minority Business Loan Mobilization Program is restricted to: sustaining the business, economic growth and development of the minority business here in the state of Arkansas. The proceeds may be used for any of the following project or purposes below. (Act 1428 of 2009)

  • Job Creation
  • Expansion
  • Repairs
  • Acquisition of Machinery & Equipment
  • Inventory Purchase
  • Working Capital

State Small Business Credit Initiative

Arkansas was awarded $13.1 million by the United States Department of the Treasury's State Small Business Credit Initiative (SSBCI) to help create jobs through lending and guaranteeing loans to small and minority businesses, supporting venture capital investments and making risk capital investments in technology based enterprises.

The Arkansas Development Finance Authority (ADFA) will collaborate with the Arkansas Economic Development Commission (AEDC) and the Arkansas Science and Technology Authority (ASTA) to distribute the funds through existing programs such as ADFA's Arkansas Capital Access Program, Bond Guaranty/Loan Participation Program, Risk Capital Matching Fund, the Disadvantaged Business Enterprise/Small Business Loan Guaranty Program, the Co-investment Fund and the Seed and Angel Capital Network.

For more information on this program, click here.

Access to Capital

Financing Resource Guide