Reserve (AR Cash) Program
ADFA promotes economic development in the state by providing access to low-cost financing and increased access to loans.
ARKANSAS CREDIT RESERVE (ACR) Program
The ACR program encourages financial institutions to make loans to small businesses that fall just outside their conventional underwriting standards. ACR is a form of loan portfolio insurance that provides up to 100% coverage on certain loan charge offs. As more loans that are made through the program, the protection afforded to the lender increases. ACR is not allocated or segregated in any way for the benefit of any one loan. The entire reserve fund can be used to help cover any losses with a particular loan(s).
Most types of lending institutions are eligible to participate in ACR. ACR lenders underwrite their own loans and minimal paperwork is required. Arkansas financial institutions interested in being a part of ACR should visit ADFAs web site, fill out an application, and e-mail, mail or fax it to ADFA.
ADFA sets up a loan loss reserve account for each participating financial institution wherever the institution wants, whether in their bank or at another.
ADFA makes a contribution to the loss reserve account with each enrolled loan.
The loan loss reserve is used to cover
LOANS FOR SMALL BUSINESSES
Minimum loan amount is $4,000.
Primary business must be located in Arkansas
Most small businesses with paid employees
HOW IT WORKS
Small business owners who cannot obtain financing through conventional methods may qualify for an ACR loan through an ACR lender. The borrower applies for a loan and is considered if the request meets the lending criteria established by the lending institution.
ARAKANSAS CREDIT RESERVE MATRIX OF FEES
Loan Amount: $2,000-$65,000
Loan Amount: $66,000 - $250,000
Loan Amount: $251,000 - $500,000
COMPARISON OF THE ADFA MANAGED
If you are interested in finding out more about this program, contact:
Bev Lambert - phone: 501-682-5912 or firstname.lastname@example.org