Money Talk: Arkansas women-owned businesses added nearly $10 billion to economy since 2007

Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news. 

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STUDENT LOAN DEBT HITS NEARLY $1.32 TRILLION, UP 6.8% FROM A YEAR AGO
Student loan debt rose $1.319 trillion in the fourth quarter, up 6.8% from $1.235 trillion in the same period a year ago, according to the Federal Reserve’s monthly economic data.

The amount of outstanding student loan debt, owned and securitized, has been on a steady path upward since the first quarter of 2006, when that debt tally was only at $480.9 billion. Since the Great Recession, the percentage of student loan borrowers who are not making their debt payments on time has increased significantly. The Fed report follows a recently released report that shows millennial college graduates aged 35 and under with student loans now are spending nearly one-fifth (18%) of their current salaries on student loan payments and that 60% now expect to be paying off student loans into their 40s.

ARKANSAS WOMEN-OWNED BUSINESSES ADDED NEARLY $10 BILLION TO ECONOMY SINCE 2007
The State of Women-Owned Businesses Report, commissioned by American Express OPEN, found that Arkansas has an estimated 83,400 women-owned firms, employing 55,800 and contributing roughly $9.9 billion to the state’s economy. Compared to the rest of the nation, Arkansas is ranked 14 with 42.4% in growth of the number of firms over the past nine years, but came in at 51st with 1.9% in growth of firm revenue between 2007 and 2016. Overall, the state’s combined “economic clout” ranking was only 46th as employment growth among those firms has declined 10.2% between those same years.

Nationally, the number of women-owned firms increased by 45% to 11.3 million enterprises, compared to just a 9% increase among all businesses since 2007. Those women-owned businesses have also contributed $1.6 trillion to the U.S. economy during that span of time. To see the full report, click here.

BANK EARNINGS KICK OFF MONDAY
The first quarter earnings season kicks off on Monday, April 11. Bank of the Ozarks will report its quarterly performance Monday afternoon, while competitors Simmons Bank and Home Bancshares will report on Thursday, April 21.

In between, regional and national banks will report earnings. Bank of America will report on Thursday, April 14, Regions Bank will report on Friday, April 15, and Bancorp South will report on Wednesday, April 20.

ARKANSAS VENTURE CAPITAL GROUP PARTNERS TO FORM NEW FUND FOR ENTREPRENEURIAL INVESTMENTS
NewRoads Capital Partners of Bentonville has partnered with Los Angeles-based Kayne Anderson Capital Advisors to form Kayne NewRoad Ventures II that will build on the prior success of the two firms’ investments in early stage, technology-based and other growth funding opportunities.

The new fund’s investment approach is to actively source and make non-control investments in companies with recurring revenues that have proven demand for their products or services, but can benefit from accelerated growth through a direct capital investment and strategic partners who can add operational expertise. Officials say they’ve already secured $90 million in commitments.