Arkansas Capital Corporation Group
The Arkansas Capital Corporation Group (ACCG) consists of several affiliated companies with different markets, including the Arkansas Capital Corporation (ACC), a privately owned, non-profit organization established in 1957 to serve as an alternative source of financing for businesses in Arkansas. Its main goal is to improve the economic climate in the state by providing long-term, fixed-rate loans to Arkansas businesses. Loans start at a minimum of $100,000.
As a preferred lender of the Small Business Administration, ACC makes loans to existing operations and business start-ups for everything from new construction and equipment to working capital. ACC loans may be used in combination with bank loans, municipal bond issues, or other sources of financing.
Other ACCG affiliates include the Six Bridges Capital Corporation, which administers SBA 504 loans, the Arkansas Capital Relending Corporation, which facilitates U.S. Department of Agriculture loans in communities with a population of 25,000 or less, the Heartland Renaissance Fund which structures financing for projects using the state and federal New Markets Tax Credit Programs, and the Pine State Regional Center that sponsors transactions using the federal EB-5 program.
Arkansas Development Finance Authority
The Arkansas Development Finance Authority (ADFA) Development Finance Division offers loans and bond guarantees under various programs. The Division does not offer grants under any of its programs. Applications are not restricted to any specific time period and may be made at any time on any day. Following are brief descriptions of the programs offered by ADFA in the Development Finance Division.
Economic Development Bond Guaranty Program
Provides long-term, below market fixed interest rate financing to qualifying industries through bond guarantees up to $6,000,000.
Capital Access Program
Creates a method for making slightly higher risk loans more attractive to participating lending institutions through a reserve driven fund. Loan amounts are determined by the individual lending institutions.
Arkansas Credit Reserve Program (ACR)
Encourages financial institutions to make loans to small businesses that fall just outside their conventional underwriting standards. It also works through a reserve driven fund, like the Capital Access Program, but has a minimum loan amount of $4,000 and a maximum of $500,000 for Arkansas’s businesses. The contributory percentage of the borrower remains at 1% of the loan amount.
Disadvantaged Business Enterprise/Small Business Loan Guarantee Program
Provides loan guarantee to lenders, up to 80% of the first $200,000 loan amount with maximum loan guarantee to $160,000, who in turn lends to small businesses that have government or private contracts but lack the necessary cash flow to adequately finance their working capital needs.
Arkansas Risk Capital Matching Fund
Provides matching investments in technology-based enterprises that are in the early stages of development and not yet able to attract adequate private sources of traditional financing, venture of investor-backed capital for growth and development. A portion of the fund will be used to validate early stage technology.
Arkansas Institutional Fund
Provides investment in proved, professionally managed private equity and venture capital funds that commit to include Arkansas in aggressive and visible deal prospecting. The intent is to catalyze the formation of risk capital and make it available to companies in Arkansas.