AEDC Announces Quick Action Loan Program for Small Businesses

In response to the inquires that they’ve received from small businesses around the state, the Arkansas Economic Development Commission (AEDC) is allocating a portion of the Quick Action Loan Program to provide loans of a smaller amount with a faster approval process. This should address the immediate need that many small businesses have for working capital that may be needed prior to securing traditional or SBA loans which may be in process. Please review the eligibility requirements and consider applying for a forgivable loan of up to $25,000.

Eligibility:

  • For small businesses in Arkansas with two to 50 (direct W-2) employees, excluding owners
  • Companies representing all industry sectors may apply
  • Companies must currently be in operation at the time of application and sign a loan agreement that includes a commitment to retaining jobs
  • Loans may only be used for working capital (e.g., payroll, rent, utilities, supplies, etc.)
  • Only one AEDC sponsored assistance program will be allowed per company (per Employer Identification Number)

The objective of this loan program is to assist companies in Arkansas with job retention as they navigate the challenges brought about by the COVID-19 pandemic. To that end, AEDC will offer the following terms for qualifying businesses:

  • A forgivable loan of up to $25,000 to be used for working capital
  • 0% interest
  • Deferred payments for 12 months, upon which time the balance is due
  • If the company retains at least 75% of its current payroll over the next 12 months, the loan balance will be forgiven

To Apply: Please follow the instructions at https://formstack.io/4E619. Upon completing the form on this link, you’ll be sent a verification email from AEDC Quick Action Loan Program (acapel@arkansasedc.com). This email will include login information to our system, where you’ll be asked to upload the following documents in order to complete the application:

All information received by AEDC through this loan process is confidential.