Arkansas Small Business Revolving Loan Guaranty Program
The Arkansas Small Business Revolving Loan Guaranty Program designed to provide loan guarantees ranging from 10% to 50% to financial institutions providing financing to small business enterprises that need additional enhancement to support deficiencies in the underwriting process.
ADFA provides a loan guarantee to lenders up to 50% with a maximum loan guarantee of $250,000 on a maximum loan amount of $500,000.
- The cost of the guarantee is 2% due at closing and can be included in borrower closing costs.
- Lenders then provide capital to their small business customers with the loan guaranteed by ADFA.
ADVANTAGES TO YOUR BUSINESS
- Helps obtain financing that would otherwise be denied.
- Builds your lender relationships.
- 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
- Bank’s underwriting package to include project details, financial statements, credit information, and analysis of borrower loan repayment ability.
- Collateral availability and borrower’s personal guarantee.
- Bank’s term sheet, commitment letter, and/or loan approval letter with evidence of board of directors, loan committee, or loan officer approval.
- Bank’s loan closing package including executed loan agreement, promissory note, and security filings.