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  The Speculative Building Loan Program was proposed in late 1988 and initiated in 1989 with the mission of giving Arkansas communities a competitive advantage over communities in other states by providing a source of financing for the construction of a speculative industrial buildings. After careful research, it was determined that certain shapes, sizes, lot sizes and site access worked best in attracting new industry to communities. With this research in mind, the speculative building program was developed.

Program Guidelines

  Local Industrial Development Corporations, interested in constructing a speculative industrial building in their communities can receive a below market rate loan from ADFA to cover up to 80 percent of the cost of the building. The balance of the financing must be raised or committed through local lenders, area businesses or other sources. The loan amount cannot exceed $1,000,000 and the principal is due when the building is sold.

Building Criteria and Specifications

  ADFA requires the building be no larger than 60,000 square feet and no smaller than 40,000. The building must be on a lot of ten acres or more and be located in an industrial park served by utilities. The site must be served by hard a surfaced road suitable for over-the-road trucks. The building can be either pre-engineered steel or concrete tilt-up and must be certified by an Arkansas licensed engineer or architect. The building can be built without a floor but must have a two-inch gravel base and be designed for up to six-inches of reinforced concrete. The eves should be constructed to a minimum "clear height of 25 feet. Building contractors are subject to the approval of the borrower and ADFA.

Several communities across Arkansas have used this program to draw new companies into their area creating new employment opportunities.


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