Arkansas Small Business Loans

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Are you running one of more than 244,000 small businesses in Arkansas? Could you benefit from a capital injection to expand your business, perhaps by buying real estate, investing in advertising, or acquiring another business?

Consider applying for a small business loan. If you qualify, you can get low-interest financing that can help you grow your business faster than you could on your own.

How a Small Business Loan Can Help Your Business in Arkansas

So why consider small business loans? Often the benefits can outweigh the cost of financing. You can use a loan for business expansion, whether that means moving into bigger offices, buying equipment that makes you more productive, or hiring employees to lighten your load and serve more people.

For many businesses over the past two years, the COVID-19 pandemic has had a significant impact on revenue. A business loan can also help you survive what remains of this tragic global situation.

Types of small business loans to choose from

Before looking at where you can find business loans in Arkansas, let’s first explore the different types of loans, as each serves a unique purpose.

Term loans

Existing businesses with a good credit history may qualify for term loans offered by banks and credit unions. Generally, these have low interest rates.

SBA Loans

Another option for working capital loans if you have good credit is an SBA loan. There are several loan programs offered by the federal government at low interest rates, including 7(a) and 504 programs. Get more information at SBA.gov.

Lines of credit

Taking out a line of credit is useful if you want access to money, but not all at once. You can borrow some now, pay it back, and then borrow more later.

Commercial real estate loans

If you are looking for capital to purchase commercial real estate, there are long-term loans with low interest rates available for eligible Arkansas businesses.

Small Business Loan Options for Arkansas

Arkansas entrepreneurs have a variety of loan programs and lenders to choose from. Here are a few to consider.

Checkout

Checkout offers term loans and lines of credit up to $150,000 to small businesses. To qualify, you must have a US-based business for at least 6 months with annual revenues of $100,000 or more and a FICO credit score of 600+.

LiftFund

Another option to consider for business financing in Arkansas is LiftFund, which offers small business loans up to $250,000 and start-up loans up to $50,000. The lender also offers SBA 7(a) Community Advantage Loans. LiftFund places particular emphasis on helping women and minority-owned businesses.

capitus

If you are looking for a short term loan of $5,000 to $500,000, consider capitus. The lender offers revenue-based financing, equipment loans, business loans and factoring. To qualify, you’ll need annual incomes of $120,000 or more, have been in business for at least one year, and have credit scores of 500 or better.

Arkansas Federal Credit Union

If you live in central Arkansas and have a branch of the Arkansas Federal Credit Union nearby, check them out for business financing. Credit unions generally have lower interest rates on loans, and AFCU offers lines of credit, term loans, equipment loans, and business credit cards.

How to Choose the Right Loan for Your Arkansas Small Business

With so many lenders and loan types, it can be hard to know where to start. Start by thinking about how much you want to borrow and how you will use it. Also, how quickly will you be able to recoup the loan through increased income?

If you’re looking for quick cash that you can repay quickly, a short-term loan (which usually needs to be paid off in just a few months) might work. If you need to borrow millions of dollars, perhaps to buy commercial property, you can get a home loan.

Just make sure you’ll be able to repay the loan, otherwise you might not.

Arkansas Small Business Grants

Small business loans aren’t your only option for small business owners to get financing in Arkansas. Non-profit organizations and local governments also offer grants that do not have to be repaid.

For grants open to businesses in Arkansas (as well as others across the country), check out USGrants.org and Arkansas.GrantWatch.org.

If you are a woman who owns a business, look at the Amber Grant, which gives $10,000 per month and an annual grant of $25,000. And of course there is the Nav Grant, which gives up to $10,000 per quarter to small businesses.

Other Resources for Small Businesses in Arkansas

Need help applying for a loan in Little Rock? Is your business in Fayetteville or elsewhere in Northwest Arkansas and want to connect with other business owners? There are many business resources available that offer technical assistance, mentoring, workshops, and networking opportunities.

The United States Small Business Administration has a district office in Little Rock and offers many business resources and events.

the Arkansas Economic Development Commission is a valuable resource for minority and women-owned businesses, as well as those in the manufacturing, science and technology sectors. And the Arkansas Small Business and Technology Development Center can help you create a business plan, advise you on buying a business, or guide you in growing your business.

No matter where your business is located in Arkansas, know that you are not alone. There are organizations and resources, not to mention plenty of financing solutions, ready to help you thrive.

This article was originally written on January 20, 2022.

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