Arkansas small business grants, loans and training funds (2026)

How Arkansas programs pay out

Most “Arkansas small business grant” lists mix several kinds of money. Before you apply, know which kind you are looking at:

• Credit support (you repay the loan). ADFA’s Capital Access Program, Small Business Revolving Loan Guaranty Program and DBE MWOBE Loan Mobilization fund ⁠²⁠³.
• Equity (an investor takes a share of your company). The Arkansas Venture Capital Development Fund and the Arkansas Venture Development Fund ⁠³⁠⁶.
• Reimbursement grants for narrow purposes. The SBIR/STTR match for federally funded R&D firms, Office of Skills Development training grants and AR-STEP export grants ⁠⁷⁠¹¹⁠¹³.
• Free service. ASBTDC consulting at seven centers ⁠¹⁴.

The only AEDC page that lists grants for small businesses names technology and research programs. The broad incentives on that page, such as Advantage Arkansas and Tax Back, are tax credits and refunds tied to new payroll or construction spending ⁠⁹.

ADFA’s $81.6 million SSBCI portfolio

Treasury awarded Arkansas $81,621,691 under the State Small Business Credit Initiative, paid in tranches over six years, and ADFA administers every program ⁠². ADFA must line up at least $1 of private money for each SSBCI dollar, with a goal of $10 ⁠².

Allocation figures are from ADFA’s SSBCI page; the Treasury capital program summaries describe the terms of each program ⁠²⁠³.

The Small Business Revolving Loan Guaranty Program is the one most small firms can use. ADFA guarantees 10% to 50% of a loan up to $500,000, with the guarantee capped at $250,000. The fee is 2% at closing, and it can be rolled into your closing costs ⁠⁵. You do not apply to ADFA yourself. Your bank approves the loan, sends its underwriting package to ADFA, ADFA’s loan committee gives initial approval, and the full board ratifies it at its next meeting ⁠⁵.

The DBE MWOBE Loan Mobilization Revolving Fund guarantees up to 80% of the first $100,000 on loans of $10,000 to $500,000. It is open only to businesses at least 51% owned by minority individuals, women or veterans ⁠³.

The two loan participation programs serve bigger deals. ADFA can fund up to 20% of a project of up to $20 million, with at least $4 of private money per SSBCI dollar. ADFA can also fund up to 50% of a CDFI’s loans ⁠³.

Pricing a Capital Access Program loan

The Capital Access Program (CAP) works differently from a guarantee. Each enrolled loan adds money to a reserve that ADFA owns but sets aside for the lender’s losses ⁠⁴. The borrower pays 1.5% to 3.5% of the loan into the reserve, and the lender pays the same amount. The lender may pass its share on to the borrower through fees or interest, so plan on up to 7% up front. ADFA then adds 150% of the combined premiums on the lender’s first $1 million of enrolled loans and 100% after that ⁠⁴. On a $50,000 loan at the 1.5% minimum, you pay $750 and the lender owes another $750 ⁠⁴.

The program has no minimum or maximum loan size, but ADFA caps its reserve payments for any one borrower at $150,000 in three years unless it approves more in writing ⁠⁴. Borrowers can be for-profit or nonprofit entities authorized to do business in Arkansas. Loans cannot finance residential housing or passive real estate, and the money must be used mainly in Arkansas ⁠⁴. Only depository institutions with their principal office in Arkansas can join. Once a lender sends the forms, ADFA typically enrolls the loan in 3 to 5 business days ⁠⁴. ADFA warns that a CAP loan will usually cost more than a conventional bank loan, so it is meant for borrowers a bank would otherwise turn down ⁠⁴.

Equity programs for growth companies

The Arkansas Venture Capital Development Fund invests $50,000 to $1,000,000 in a company, up to 20% of any one capital raise. Private investors must commit at least 50% of the raise before ADFA invests ⁠⁶. The company needs a significant management and employee presence in Arkansas and a board of at least three members, and it must file quarterly financials. If it moves its headquarters or main workforce out of the state, it must repay the investment at market value right away ⁠⁶. The Arkansas Venture Development Fund invests in venture fund managers instead, so you would pitch the fund, not ADFA ⁠³.

AEDC also has smaller technology programs ⁠⁹:

• Seed Capital Investment Program: up to $500,000 as debt, equity or royalty financing.
• Technology Development Program: royalty financing of up to $100,000 per technology, at 0% to 5% royalties for up to 10 years.
• Equity Investment Tax Credit: a credit worth 33⅓% of an approved investment. It goes to the investor, not to you.

None of these is a grant.

AEDC’s SBIR and STTR match under Act 440

The Arkansas Small Business Innovation Research Matching Grant Program is the closest thing Arkansas has to a cash grant for a young company. You must win a federal award first ⁠⁷. Act 440 of 2025, approved April 3, 2025, extended the match to federal STTR awards, moved administration to the full AEDC and removed the old limit of three matching grants per company ⁠⁸.

• Amount. Up to 50% of the federal award, capped at $50,000 for Phase I and $100,000 for Phase II ⁠⁸.
• Phase II eligibility. You must have filed your final Phase I report, shown that the agency is interested and submitted the Phase II proposal ⁠⁸.
• Conditions. You must stay in Arkansas for the award period, name an Arkansas resident or employee as principal investigator, and spend at least 51% of the grant in the state ⁠⁸.
• Industries. The firm must work mainly in one of six targeted fields: advanced materials and manufacturing, agriculture and food, biotechnology, information technology, transportation logistics or bio-based products ⁠⁸.
• Review and payment. AEDC reviews applications in the order received and returns incomplete ones unreviewed. It pays only as reimbursement against invoices ⁠⁸.

A related grant is the Technology Transfer Assistance Grant. It covers projects of up to $5,000 that bring an outside expert’s technology into an Arkansas business. AEDC pays the first $2,500 and splits the rest 50:50, so its share is at most $3,750. Each business can get two projects per state fiscal year ⁠⁹. AEDC’s Business and Technology Accelerator Grant (up to $250,000) goes to organizations that run accelerators, not to the startups in them ⁠⁹.

Training grants: Office of Skills Development and WIOA contracts

The Office of Skills Development pays back part of your training costs after the training ends ⁠¹¹:

• Grow Our Own: up to 75% of approved costs, for Arkansas businesses with 250 or fewer employees.
• Customized Technical Training: up to 75%, for equipment-specific or technical skills.
• Professional Development: up to 50%, for leadership and soft skills.
• Skills Gap: funding varies, for regional or industry-wide shortages.

OSHA safety courses are not eligible. OSD awarded more than $7 million in fiscal year 2024-25 ⁠¹¹. UAFS’s Center for Business and Professional Development lists a coordinator employers can call about OSD grants ⁠¹¹.

Your local workforce development board can also sign a federal WIOA incumbent worker training contract with you. It is meant to upgrade current staff or avoid layoffs, and it cannot pay for training a new hire needs ⁠¹². Most trainees must have worked for you for at least six months. You pay part of the cost: at least 10% if you have up to 50 employees, 25% at 51 to 100 employees, and 50% above 100. Trainee wages paid during training count toward your share ⁠¹².

AR-STEP export reimbursements

World Trade Center Arkansas, based at the University of Arkansas, runs the state’s SBA-funded STEP grant as AR-STEP ⁠¹³. It reimburses up to 80% of pre-approved export costs, up to $20,000 per company per grant period, across as many as seven approved activities. Eligible costs include trade show fees, economy airfare, lodging at GSA rates, compliance testing and shipping samples. Salaries and capital equipment are not covered ⁠¹³.

To qualify, you need at least one year in business, operations in Arkansas, SBA small-business size for your industry code and products with at least 51% U.S. content ⁠¹³. Applications must arrive at least 45 calendar days before the trade show or mission, and late ones are not reviewed. Funding is limited ⁠¹³.

Local loan funds AEDC points to

AEDC’s small business funding page sends very small and rural firms to loan funds rather than grants. Kiva hubs in Little Rock and Northwest Arkansas offer 0% loans of up to $15,000 for up to three years, and Communities Unlimited makes rural microloans of $1,000 to $100,000 ⁠¹⁰. These loans must be repaid.

Working the Arkansas system step by step

1. Book a free ASBTDC consultation

   Sign up online and pick the closest center: Little Rock, Fayetteville, Fort Smith, Jonesboro, Magnolia, Russellville or West Memphis ⁠¹⁴. Bring your business plan, recent financial statements or projections and the amount you need. ASBTDC also helps tech firms with SBIR and STTR proposals ⁠¹⁴.

2. Ask your bank about ADFA backing

   If a lender says your loan is too risky, ask whether it will use the Small Business Revolving Loan Guaranty or enroll the loan in CAP. Expect a 2% guarantee fee or a 1.5% to 3.5% CAP premium ⁠⁴⁠⁵. The bank applies, not you ⁠⁵.

3. Minority-, women- and veteran-owned firms: ask about the DBE MWOBE guarantee

   Have proof that the business is at least 51% owned by eligible owners ⁠³.

4. Apply to OSD before training starts

   Get a quote from a college or trainer, confirm your employee count and submit through the OSD portal. Keep invoices and attendance records, because OSD pays only after training ends ⁠¹¹.

5. Tech firms: file for the SBIR match as soon as the federal award arrives

   Applications are taken in order of receipt, and funding is not guaranteed. Have your award notice, budget and Arkansas principal investigator ready ⁠⁸.

6. Exporters: call AR-STEP at 479-418-4800 at least 45 days before an event

   Get written pre-approval before you spend any money, because unapproved costs are never reimbursed ⁠¹³.

7. If you are turned down, adjust and try again

   A bank’s credit decision can be taken to another Arkansas bank, and AEDC returns an incomplete SBIR match application without review, so check every form before you file ⁠⁸. Ask your ASBTDC consultant to review what went wrong ⁠¹⁴.

Compare Arkansas with other states on the small business grants hub.