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CARES ACT REVOLVING LOAN FUND

The economic impact from the coronavirus is severe. Rebuilding is costly, but crucial to success. Now is the time to plan, invest, and strengthen your business for the future. The Central Arkansas Planning and Development District can provide urgent, low-cost financing of up to $100,000 if your small business has been affected by the pandemic.

 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act Revolving Loan Fund is a new economic recovery loan program, created by the Economic Development Administration under the U.S. Department of Commerce, designed to alleviate sudden and severe economic dislocation caused by the coronavirus (COVID-19) pandemic. It will provide permanent resources to support economic resiliency and further the long-term economic adjustment objectives of the Central Arkansas Planning and Development District Region.

To find out if you are eligible for COVID-19 revolving loan funds, contact our agency today or feel free to utilize our eligibility self-check form.

LOAN INFORMATION

The Central Arkansas Planning and Development District has federal CARES Act dollars available in low-interest, working capital loans.

  Minority and women-owned business enterprise (MWBE) owners are strongly encouraged to apply.

LOAN ELIGIBILITY: 

  • Business MUST be an independently owned and located within Faulkner, Lonoke, Monroe, Prairie, Pulaski and Saline counties.

  • Business must show positive 2019 net income

  • Business has been operational (with documentation) for a minimum of two years

  • Eligible business types include corporations, sole proprietorships, LLC’s, partnerships

  • Business that has 250 employees or less

  • Business is able to document COVID-19 effects on business operations

  • Business does NOT have any current open judgments or tax liens

  • Please note other eligibility requirements may apply

USE OF FUNDS: 

  • Funds may be used for legitimate business expenses, INCLUDING BUT NOT LIMITED TO working capital, lease payments, existing real estate and equipment financing payments, covering payroll shortage, building renovations and technology upgrades.

  • Funds may NOT be used for re-financing of existing debt, speculation or investment in stocks or interest bearing securities, relocating jobs from one labor area to another, judgements, or for similar purposes for which the business has previously received federal funding.

  • Funds may be used for refinancing existing debt, SO LONG AS the business was in sound economic justification prior to the refinancing.

  • Funds may be used for similar purposes for which the business has received federal funding ONLY IF the federal funds have been forgiven or paid off. 

TERMS & REQUIRED DOCUMENTATION:

Terms:

  • Maximum:  $100,000

  • Interest rate fixed at 3%

  • Repayment Period up to 5 Years

  • MUST have Collateral from the business to secure the loan

Required Documentation:

  • Completed loan application

  • Personal Financial Statement (to be completed by anyone owning 20% or more of the businesses)

  • Proposed Use of Loan Proceeds, , including a statement describing how COVID-19 has adversely impacted the business

  • Statement of Personal History (to be completed by anyone owning 20% or more of the business)

  • 2019 federal business tax returns

  • Schedule of Liabilities for the business

 

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