Small Business Jobs Act initiative assists Arkansas

12/6/2011

The U.S. Treasury Department's State Small Business Credit Initiative recently announced $13.1 million in funding to the state of Arkansas to increase small business lending, The Associated Press reports.

Arkansas' Development Finance Authority (ADFA) will team with the state's Economic Development Commission as well as its Science and Technology Authority to distribute the funds through state-run programs.

"We've always needed additional capital to grow some of our entrepreneurial and high-tech activities and this is another tool," said governor Mike Beebe, as quoted by FOX16. "The uncertainty of our national economy has made it tougher for small businesses to obtain loans and investments to create jobs. This program will help us encourage business growth in Arkansas and keep our entrepreneurial spirit strong."

The state can opt to receive the money in three equal installments, although 80 percent of the initial funding must be must be spent in order to receive each successive transfer.

The first loan will be made through the ADFA's Capital Access Program, which offers loan portfolio insurance to entice private banks to lend to small business owners.