Loans

Small Business Loans in Arkansas

Small Business Loans in Arkansas
Written by Publishing Team

Do you run one of more than 244,000 small businesses in Arkansas? Can you do a capital injection to grow your business, perhaps by buying real estate, investing in advertising, or acquiring another company?

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

How a Small Business Loan Can Help Your Business in Arkansas

So why should you consider small business loans? Often, the benefits can outweigh the cost of financing. You can use a loan to expand the business, whether it’s to move into a larger office space, buy equipment that will make you more productive, or hire employees to lighten your load and serve more people.

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

Types of Small Business Loans to Choose From

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

long term loans

Existing businesses with good credit history may qualify for term loans from banks and credit unions. In general, these have low interest rates.

SBA Loans

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

lines of credit

Having a line of credit is useful if you want to get cash, but not all at once. You can borrow some now, pay them off, 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 at low interest rates available to qualified Arkansas corporations.

Arkansas Small Business Loan Options

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

chest chest

Fundbox offers term loans and lines of credit of up to $150,000 for small businesses. To qualify, you must have a US business that is at least 6 months old with annual revenue 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 of up to $250,000 and startup loans of up to $50,000. The lender also offers SBA 7(a) Community Advantage loans. LiftFund focuses specifically on helping women and minority-owned businesses.

Leader

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

Federal Credit Union of Arkansas

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

How to Choose the Right Loan for Your Small Business in Arkansas

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 the money. Also, how quickly will you be able to pay off the loan for itself through increased revenue?

If you’re looking for quick cash that you can pay off quickly, a short-term loan (which should be paid back in just a few months) may work. If you need to borrow millions of dollars, perhaps to buy a commercial property, you can take out a mortgage.

Just make sure that you will be able to repay the loan, otherwise you risk defaulting.

Small Business Scholarships in Arkansas

Small business loans are not your only option for small business owners to obtain financing in Arkansas. Nonprofits and local governments also provide grants that do not have to be repaid.

For grants that are open to Arkansas corporations (as well as others around the country), check out USGrants.org and Arkansas.GrantWatch.org.

If you’re a woman who owns a business, look no further than the Amber Grant, which gives you $10,000 per month, and an annual grant of $25,000. And of course, there’s the Nav Grant, which gives out up to $10,000 every quarter for small businesses.

Other Small Business Resources in Arkansas

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

The US Small Business Administration has a regional 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 manufacturing, science, and technology. The Arkansas Small Business and Technology Development Center can provide assistance with developing a business plan, advice on purchasing a business, or guidance for growing your business.

No matter where you work 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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