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Frequently Asked Questions # 11
11.
What about non-bank lenders? Who are they and
what services do they provide?
The
Arkansas Capital Corporation Group is a
unique family of financial organizations with
the same mission - to foster economic
development of small businesses in the state of
Arkansas. Arkansas Capital Corporation (ACC) is
a privately owned corporation established to
serve as an alternative source of financing for
companies in Arkansas. ACC provides long-term,
fixed-rate loans to existing operations and
business start-ups - from dry cleaning shops to
steel fabricating plants. ACC bridges the gap
between the level of funding a business needs
and what it is able to obtain through
traditional banking sources. Generally, loans
range from a minimum of $100,000 to a maximum of
$1,250,000.
Venture capital financing is available through
Diamond State Ventures (DSV), an
affiliate of Arkansas Capital Corporation Group.
Venture capital firms invest for long-term
capital, not for interest income like banks.
Consequently, they invest only in firms they
believe can rapidly increase sales and generate
substantial profits. Generally, VC firms look to
invest in companies that will earn three to five
times their investment in five to seven years.
Typically, venture capital firms don't invest in
companies seeking less than $250,000 due to the
high costs of performing due diligence. Examples
of leading industries that receive venture
capital dollars are bio-pharmaceuticals,
communications, software, and electronics. Like
most venture capital firms, DSV typically seeks
investment opportunities in existing companies
instead of start-up businesses.
For
more information, contact the ACC at (501)
374-9247 or log on to their website at
www.arcapital.com.
Financing Ozarks Rural Growth and Economy
(FORGE) provides a revolving loan fund to
support sustainable agriculture and a healthy
rural environment. FORGE helps with access to
capital and technical support to people and
projects that may not find support from
conventional lenders.
For
more information, contact FORGE at (501)
738-1585 or send an email to
forgeinc@juno.com.
Southern Financial Partners is a 501 C 3
non-profit organization that provides lending
services and technical assistance to small
businesses.
SFP
provides financing for start-up businesses,
business expansion and working capital lines of
credit to small businesses in rural communities
that traditionally have difficulty obtaining
access to credit.
For
more information, contact SFP at (870) 246-9739
or log on to their website at
www.southernfinancialpartners.org.
Refer to the
Reality of Venture Capital.
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