Small Business Loans in Arkansas

Do you run one of the 244,000+ small businesses in Arkansas? Could you do with an infusion of capital to grow your business, maybe by purchasing real estate, investing in advertising, or acquiring another company?

Consider applying for a small business loan. If you qualify, you can get low-interest financing that can help you expand your business faster than you could on your own.

How a Small Business Loan Can Help Your Arkansas Business

So why consider small business loans? Often, the benefit can outweigh the cost of financing. You can use a loan for business expansion, whether that’s to move into larger office space, buy equipment that makes you more productive, or hire employees to lighten your load and serve more people.

For many businesses over the past couple of years, the COVID-19 pandemic has had a large impact on revenues. A business loan can also help you survive what’s left of this tragic global situation.

Types of Small Business Loans to Choose From

Before we look at where you can find business loans in Arkansas, let’s first explore different types of loans, since each has a unique purpose.

Term Loans

Existing businesses with good credit history may qualify for term loans offered by banks and credit unions. Generally, these have low interest rates.

SBA Loans

Another option for working capital loans if you have good credit is an SBA loan. There are several loan programs available from the federal government with low interest, including the 7(a) and 504 programs. Get more info at SBA.gov.

Lines of Credit

Taking out a line of credit is helpful if you want access to cash, just not all at once. You can borrow some now, pay it back, and then borrow more later.

Commercial Real Estate Loans

If you’re looking for capital to purchase commercial real estate, there are long-term loans with low interest rates available to qualifying Arkansas businesses.

Small Business Loan Options for Arkansas

Entrepreneurs in Arkansas have a variety of loan programs and lenders to choose from. Here are a few to consider.

Fundbox

Fundbox offers term loans and lines of credit up to $150,000 to small businesses. To qualify, you need to have a U.S.-based business at least 6 months old with $100,000 or more in annual revenues and a FICO credit score of 600+.

LiftFund

Another option to consider for business financing in Arkansas is LiftFund, which offers small business loans up to $250,000 and startup loans up to $50,000. The lender also offers SBA 7(a) Community Advantage loans. LiftFund has a special emphasis on helping women and minority-owned businesses.

Kapitus

If you’re looking for a short-term loan of $5,000 to $500,000, consider Kapitus. The lender offers revenue-based financing, equipment loans, business loans, and factoring. To qualify, you will need annual revenues of $120,000 or more, be in business for at least a year, and have credit scores of 500 or greater.

Arkansas Federal Credit Union

If you live in Central Arkansas and have a branch of the Arkansas Federal Credit Union nearby, check them out for business financing. Credit unions usually have lower interest rates on loans, and AFCU offers lines of credit, term loans, equipment loans, and business credit cards.

How to Choose the Right Loan for Your Arkansas Small Business

With so many lenders and types of loans, it can be hard to know where to begin. Start by considering how much you want to borrow and how you’ll use the money. Also, how quickly will you be able to make the loan pay for itself through a boost in revenue?

If you’re looking for fast cash that you can repay quickly, a short-term loan (which typically has to be repaid within just a few months) might work. If you need to borrow millions of dollars, maybe to buy commercial property, you can get a real estate loan.

Just be sure you will be able to afford to repay the loan, otherwise, you risk defaulting on it.

Small Business Grants in Arkansas

Small business loans aren’t your only option for small business owners to get financing in Arkansas. Nonprofit organizations and local governments also offer grants that don’t have to be repaid.

For grants open to Arkansas businesses (as well as others across the country), check out USGrants.org and Arkansas.GrantWatch.org.

If you’re a woman who owns a business, look at the Amber Grant, which gives away $10,000 a month, and an annual grant of $25,000. And of course, there’s the Nav Grant, which gives away up to $10,000 each quarter to small businesses.

Other Small Business Resources in Arkansas

Need help with a loan application in Little Rock? Is your business in Fayetteville or elsewhere in Northwest Arkansas and you want to connect with other business owners? There are plenty of business resources available that offer technical assistance, mentoring, workshops, and networking opportunities.

The U.S. Small Business Administration has a district office in Little Rock and offers many business resources and events.

The Arkansas Economic Development Commission is a valuable resource for minority- and women-owned businesses, as well as those in manufacturing and science and technology. And the Arkansas Small Business and Technology Development Center can provide assistance creating a business plan, advising on purchasing a company, or guidance to grow your business.

No matter where your business is located in Arkansas, know that you’re not alone. There are organizations and resources, not to mention plenty of financing solutions, ready to help you thrive.

This article was originally written on January 20, 2022 and updated on January 24, 2022.

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