Arkansas Department of Commerce ready for Quick Action loans for COVID-19 impacted
by March 31, 2020 12:45 pm 1,909 views
The Arkansas Department of Commerce will begin receiving applications for the Quick Action Loan Guaranty Program to address the immediate needs of businesses affected by the COVID-19 outbreak. The program will be administered by the Arkansas Economic Development Commission (AEDC) in partnership with Arkansas banks.
Funds for the program are provided through an allocation of $4,000,000 from the Governor’s Quick Action Closing Fund, and an additional $3,000,000 from Attorney General Leslie Rutledge’s Consumer Education and Enforcement Fund. A portion of the funding will go towards the guaranty loan program while other funding will be focused on direct loans through AEDC.
“In such an unprecedented time in our state’s and nation’s history, it’s critical for AEDC to partner with our lenders to address our current economic crisis,” said Secretary of Commerce Mike Preston. “Our businesses need relief and we are dedicated in helping see them through this difficult time.”
“The highest priority for Arkansas banks is taking care of their customers, and they are committed to responding to the needs of their communities,” said Arkansas Bankers Association Board Chairman Rob Robinson. “The new AEDC Quick Action Loan Guaranty program will be another tool that Arkansas banks can use to help businesses and our local economy. Please call your local bank to specifically discuss your financial situation and understand what assistance may be available. Arkansas banks are prepared and stand ready to help Arkansans during this challenging time.”
AEDC’s Quick Action Loan Guaranty is capped at $250,000 and will guaranty up to 80% of the principal balance of a loan issued by a participating lender of the program. Funds may be used for working capital, inventory, payroll and other uses that facilitate the continuation of business operations.
Arkansas lenders interested in participating should contact AEDC. Those participating will be listed on the AEDC COVID-19 website www.arkansasedc.com/covid19. Lenders will assess the needs of borrowers to determine suitability for the program. Interested borrowers are advised to contact local lenders initially. For information on the program call 1-800-ARKANSAS or email [email protected].