Funding to create jobs and encourage over $130 million in lending
and investments to small businesses and manufacturers has been awarded to the State of Arkansas by United States Department of Treasury (Treasury).
Arkansas received $13,168,350 under the State Small Business Credit Initiative (SSBCI) which is expected to generate a minimum “bang for the buck” of at least $10 in new private lending for every $1 in federal funding. As such, $13 million is expected to support more than $130 million in new private lending.
The Arkansas Development Finance Authority (ADFA) will use these SSBCI funds to support and provide additional funding for its existing Arkansas Capital Access Program, Bond Guaranty/Loan Participation Program, Risk Capital Matching fund, the Disadvantaged Business Enterprise/Small Business Loan Guaranty Program, the Arkansas Development Finance Authority Co-investment Fund and the Seed and Angel Capital Network.
The allocation of funds is available in thirds. At least 80% of the Treasury’s initial transfer of one-third of the awarded amount, $4,345,556 will have to be expended or obligated before receiving each successive transfer. The SSBCI program is a one-time limited duration program. At the end of 24 months, funds not transferred may be considered by the Treasury no longer allocated.
We know this is an aggressive but attainable time table,” said ADFA Vice President of Development Finance Gene Eagle. “The recent co-location of the Arkansas Development Finance Authority, the Arkansas Economic Development Commission and Arkansas Science and Technology Authority and the formation of a close working relationship is expected to be an invaluable resource that will help target the outreach of these funds to communities throughout the state.”
The SSBCI program was a critical part of the Small Business Jobs Act that President Obama signed into law last September. Small businesses have historically created two out of every three jobs in our country. But when small businesses can’t access credit, they can’t invest in new equipment, expand their operations or create jobs. This program helps ensure that more small businesses can get the loans they need to hire, expand, and invest in their local communities.
SSBCI funding to interested small businesses and industries will start immediately.
For additional information about the program available today, please visit the following links:
Participating ADFA Programs
VP Development Finance
ADFA Home Page |
State Home Page
ADFA Economic Development Programs