Credit Enhancement Programs
ADFA can provide a company with a bond guaranty thereby improving its debt or credit worthiness. Through programs like ADFA's Bond Guaranty Program, investors are provided with reassurance that the borrower will honor their obligation.
ABOUT THE ARKANSAS SMALL BUSINESS REVOLVING LOAN GUARANTY PROGRAM
Provides a source of capital to Arkansas small business enterprises.
Qualifying small businesses perform governmental and/or private contract work, including service contracts.
- ADFA provides a loan guarantee to lenders up to 50% with a maximum loan guarantee of $250,000 on a maximum loan amount of $500,0000.
- The cost of the guarantee is 2% due at closing and can be be included in borrower closing costs.
- Lenders then provide capital through loans to small businesses to adequately finance their working capital needs.
ADVANTAGES TO YOUR BUSINESS
- Helps obtain financing for labor and materials necessary to complete specific governmental and/or private contracts.
- Builds your lender relationships.
APPLICATION PROCESS
- After the bank approves the loan, the application will be forwarded to ADFA for its approval and issuance of the Loan Guarantee Agreement.
- Initial ADFA approvals will be issued by an ADFA Loan Committee, with ratification by the full Board at the subsequent meeting.
LOAN APPLICATION WILL INCLUDE
- Details of the project, contract history and work experience of contractor
- Applicant financial statements, credit information, loan repayment ability in the event of default
- Collateral availability and borrower’s personal guarantee.
- Bank's approval letter with evidence of board of directors, loan committee or loan officer approval.
- Banks closing package including executed loan agreement, promissory notes and security filings.
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Venture Capital Partners
