ADFA has set aside $2,000,000 for tourism development direct loans for new business start up or expansion in the tourism industry. Additional funding of $1,000,000 will be sought through the USDA-Intermediary Relending Program (IRP). An additional $250,000 will be made available from the Arkansas Department of Heritage for projects which have cultural or historical significance.
Intermediary Relending Program (IRP) money, if received by ADFA, will be used in rural Arkansas and in federally designated Enterprise Communities whenever possible. If the business qualifies for USDA funding, the loan rate will be 3%. Otherwise, the loan rate will be ½ of the maximum finance rate allowed by the Arkansas Usury Law.
Loans will be a 50/50 match with local financial institutions. The local financial institution will service all loans. There is no maximum or minimum project size.
Maximum state loan amount is $250,000. Minimum state loan amount is $1,000.
State loan proceeds must be for fixed costs only such as acquisition of land and buildings, new construction, renovation, of an existing building, site improvements and purchase of new or used equipment (existing buildings and used equipment must be appraised).
Business planning and business skills training from UALR Small Business Development Center (SBDC) or similar programs will be encouraged for new and existing owners/operators.
A standard pre-application form has been developed to keep costs to a minimum. Any legal and closing costs associated with the loan will be paid by the borrower and can be financed.
For more information contact: Chuck Cathey at 501-682-5901