The Bond and Loan programs of Arkansas are four programs designed to attract small business development within the state.
The Minority Business Loan Mobilization Revolving Fund is restricted to sustaining the business, economic growth and development of the minority businesses in the state of Arkansas. The proceeds may be used for job creation, expansion, repairs, acquisition of machinery and equipment, inventory purchase, and working capital. To be eligible for the program the Business Owner must be a member of the following minority groups: African American, American Indian, Asian American, Hispanic American, Pacific Islander American, Service Disabled Veteran.
The Capital Access Program makes funds available to borrowers who might otherwise have difficulty in obtaining conventional bank loans. The LLR fund is available on a pooled basis to be applied to any of the lenders Capital Access Program loans.
The Capital Access Program states that a portion of the SSBCI (State Small Business Credit Initiative) allocation has been set aside to provide direct co-investments in Arkansas companies that have received commitments for an institutional venture capital investment from qualified venture capital entities. The source of money for these AIF investments has been borrowed capital from banks. With the advent of the SSBCI funding, ADFA now has an ability to support Arkansas businesses directly with venture capital investments without having to borrow the money.
The Bond Guaranty Program is open to businesses that qualify for taxable and/or tax-exempt financing but do not have the financial strength to access national capital markets. The Arkansas Development Finance Authority acts as a guarantor of the bond issue and this guarantee provides the necessary credit enhancement for the bondholder and takes the place of a Line of Credit or Bond Insurance.