Arkansas businesses have been hit hard by the coronavirus pandemic. While revenue has slowed for some, other businesses have been forced to shut down entirely. As a result, many business owners are facing a time of unprecedented financial uncertainty.
As a countermeasure, Arkansas officials have introduced new measures to supply loans and other funds to Arkansas businesses. One of those measures is providing access to a Quick Action Loan Guaranty Program.
The Arkansas Department of Commerce is now accepting applications for the Quick Action Loan Guaranty Program. These funds, administered by the Arkansas Economic Development Commission (AEDC), will help businesses that have been affected by the coronavirus pandemic.
“In such an unprecedented time in our state’s and nation’s history, it’s critical for AEDC to partner with our lenders to address our current economic crisis,” Secretary of Commerce Mike Preston said in a statement. “Our businesses need relief and we are dedicated in helping see them through this difficult time.”
This program allows business owners to borrow up to $250,000 for “working capital, inventory, payroll and other uses that facilitate the continuation of business operations,” according to a Department of Commerce news release. The program will guarantee up to 80 percent of the principal balance of the loan issued by a participating lender.
The funds for the program were provided by $4 million from the Governor’s Quick Action Closing Fund and $3 million from Arkansas Attorney General Leslie Rutledge’s Consumer Education and Enforcement Fund. Some of the $7 million in funding will be allocated toward the loan program while portions of the funding will be used for direct AEDC loans.
Interested borrowers are advised to contact local lenders initially. For information on the program call 1-800-ARKANSAS or email COVID19.email@example.com.