Arkansas Small Business Revolving Loan Guaranty Program
Arkansas Development Finance Authority (ADFA)
Guarantee up to $250,000
AR bank-loan guarantee
A state loan-guarantee program that helps Arkansas small businesses qualify for bank financing they couldn't get on their own. ADFA guarantees 10% to 50% of a participating lender's loan, up to a maximum guarantee of $250,000 on a maximum loan of $500,000, reducing the bank's risk where underwriting deficiencies would otherwise cause a denial. The business applies through its bank; once the bank approves, the application goes to ADFA for approval and issuance of a Loan Guarantee Agreement. The guarantee costs 2% of the guaranteed amount, due at closing and able to be rolled into the borrower's closing costs. The program is part of Arkansas's State Small Business Credit Initiative (SSBCI) capital programs.
- Funding type
- Loan
- Level
- State
- Amount range
- Guarantee up to $250,000
- Realistic amount
- Loans typically run well under the $500,000 cap; the guarantee is sized (10–50%) to close th…
- Deadline
- Rolling — applications are submitted through a participating bank year-round; ADFA's Loan Committee issues initial approvals, ratified by the full Board at its next meeting.
- Status
- active
- States
- Arkansas
- Payment model
- loan
Who qualifies
- Arkansas small business enterprise
- Borrowing through a participating financial institution
- Loan needs additional enhancement to overcome an underwriting deficiency
- Loan amount within the $500,000 program maximum
- Able to pay the 2% guarantee fee at closing (may be financed into closing costs)
What it covers
Eligible expenses
- General business financing supported by the underlying bank loan
- Working capital
- Equipment
- Real estate / facilities (as underwritten by the lender)
Ineligible expenses
- Uses prohibited by the participating lender or SSBCI rules
- Loan amounts above the $500,000 program maximum
How to apply
-
1
Approach a participating bank
Apply for a small-business loan at a financial institution that participates in the program and identify that an ADFA guarantee is needed to close the underwriting gap.
~4 hrs
-
2
Bank approves and forwards to ADFA
Once the bank approves the loan, it forwards the application to ADFA for guarantee approval. The borrower provides supporting financials through the lender.
~4 hrs
-
3
ADFA approval and guarantee agreement
ADFA's Loan Committee issues initial approval (ratified by the Board at its next meeting) and issues the Loan Guarantee Agreement; the 2% fee is paid at closing.
~2 hrs
-
4
Close the loan
Close with the bank; the guarantee covers 10–50% of the loan (up to $250,000), reducing the lender's exposure.
~2 hrs
This isn't a grant or a direct loan you apply to ADFA for — start at your bank and ask whether they participate in the ADFA guaranty; the guarantee only happens after the bank approves and forwards your file. The 2% fee can be rolled into closing costs, so it shouldn't be an out-of-pocket barrier.
Deadline & timing
No fixed deadline. The bank originates and approves the loan first, then forwards the application to ADFA for guarantee approval. Approvals are committee-issued and Board-ratified.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.