5 Steps to Being a Great Boss

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The worst thing about being a bad boss is less obvious than you might think. No, it’s not the feeling of conversations abruptly ending when you walk in a room. It’s not even the fact that you’re the only one not invited to parties. It’s that you can be a bad boss, and not even know it. It doesn’t stop there. Bad bosses don’t keep their negativity contained– that poor leadership spreads through employees, often resulting in low morale and even lower productivity. To fight back, take a look at our list of tips and tricks to help you be the best leader you can be– for your employees and your business.

Communicate Your Vision

More often than not, your employees show up to work each day wanting to do a good job, so help them with that! Be certain that your employees understand why they do what they do, and what’s expected of them. This not only engages them, but it also makes them feel more involved and motivated each day at work.

Allow Your Employees to Communicate

That being said, communication is a two way street! Empower your employees by maintaining a work environment where honest communication is not only accepted, but expected. This allows your staff to not feel like they have to handle stresses alone, and it allows for improvement of products, processes and procedures.

Build Trust

Without trust, your staff is more cooperating instead of collaborating. Build this bond by setting an example. Be honest and fair, through both negative and positive situations, and show that you’re a team player who can be relied upon. This not only builds trust, but also team-comradery.

Provide Feedback

In any leadership position, you should never underestimate the power of feedback. In fact, according to Globoforce, 81% of employees showed greater job satisfaction following recognition from their superior. This earned praise helps employees feel valued, confident and accomplished. The return? A more efficient, motivated workplace.

Encourage Happiness

There’s a fine line that separates good employees from great employees. In that line, you’ll find happiness. Whether your employees are flipping burgers, stationed at a computer or interfacing with guests, there’s always opportunity for fun and productivity. Maybe that opportunity is something as simple as verbal encouragement, or maybe it’s something less obvious like a lunchtime desk chair race. Whatever that looks like for your office, don’t allow it to be overlooked. Sometimes the smallest activities or actions are what makes an employee excited to come in to work each day. As a bonus? Chair races are great-team building exercises!

We understand– being a boss is a tough job, and unfortunately, there’s no magic formula to make sure that you’re always being a good one. But with these tips, in combination with our 60 years of lending expertise to new and growing businesses, we’re confident that you don’t have anything to worry about. Contact us today!

Meet the Founders

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Arkansas Capital Corporation is a private, non-profit lending corporation known for helping grow businesses through our expertise and flexible financing products. We didn’t grow this large overnight though. In fact, Arkansas Capital, originally named First Arkansas Development Finance Corporation, was formed in 1957 to finance the transformation of Arkansas from an agricultural economy to an industrial one. Who were the forward-thinking, influential individuals who sparked this movement? Allow us to introduce you.

Winthrop Rockefeller

Before Rockefeller served his two terms as Governor of Arkansas, he was already known for his economic development. From his purebred cattle business, to his position as founding chair of the Arkansas Industrial Development Commission (now the Arkansas Economic Development Commission), Rockefeller was responsible for bringing thousands of jobs and millions of dollars in capital investment to Arkansas.

John Tyson

John Tyson’s entrepreneurial experience began when he heard word that chickens were selling for more money in the northern part of the United States than in his home state. With this news, Tyson began transporting hoards of chickens to Chicago, Illinois, to sell them for profit. Eventually, this led to the purchase of a broiler farm in Northwest Arkansas, where he began cross-breeding poultry, and growing a name for himself as not only innovative but successful.

Horace Cabe

As the founder of the Gurdon Lumber Company, timber businessman, Charles Louis (Horace) Cabe Sr., was another major player in the founding of what is now known as Arkansas Capital. Later in life, he went on to establish the Horace C. Cabe Foundation, created to grant funds to nonprofits and programs in both Arkansas and Texas.

Harvey Couch Jr.

From modest beginnings to being dubbed the “father of Arkansas Power and Light Company,” Harvey Couch helped create both the Louisiana and Arkansas Railway and the Kansas City Southern Railway into the major transportation systems that they are today.

John Ed Chambers

Vanderbilt graduate, John Ed Chambers, became a Chancery Judge for the 14th District of Arkansas prior to establishing Danville State bank, now called Chambers Bank, as a way to help his fellow citizens of Arkansas survive during the depression of 1930.

Dave Grundfest

Dave Grundfest, known fondly as “Mr. Dave” by his employees, founded Stering Stores Company, Inc., in 1922. In the 50 years following, he expanded to build 100 retail variety stores across the United States, including Magic Mart Discount Department Store, a 50-store venture, that by 1983, allowed Mr. Dave to retire and sell approximately 150 stores.

Charles H. Murphy Jr.

Charles Murphy Jr. took over the family enterprise, Murphy Oil Corporation, at a ripe age of 21, and spent the next five decades building it to where it is today. Mr. Murphy retired in 1994 with two refineries in the United States and the United Kingdom, and a seat on Murphy Oil’s board of directors.

Raymond Rebsamen

After being named one of the nation’s top 50 brokers, Raymond Rebsamen’s business, Rebsamen Insurance, was purchased by Regions in 2001. Since then, he served on many business and community boards in his home state of Arkansas, offering his expertise and business knowledge.

JA Riggs Jr.

After a three-year period of growth, John Riggs, Jr., or J.A., joined J.A. Riggs Tractor Co. (now Riggs CAT). With this expansion, a new branch was opened in West Memphis, and an additional 66 counties were added. Today, Riggs CAT proudly employees over 400 people statewide, and operated facilities throughout the state.

McCloud Sicard

Although Fort Smith was founded in 1817, local historians claim that the town didn’t hold a position in the commercial world until First National Bank opened in 1872. McCloud Sicard took over this operation as President in 1977. Under his leadership, First Bank Corp., National Bank of Sallisaw; Citizens Bank and Trust Company in Van Buren; First National Bank of NWA; Brown-Hiller-Clark & Associates; and Realty Appraisals, Inc. were all founded.

E.O. Yancey

E.O. Yancey served on the Searcy Board of Public Utilities when the city of Searcy purchased the Searcy waterworks system from the White Country Water Company, Inc. This system, now known as the Searcy Water and Sewer System, has operated the water and sewer system ever since.

William E. Darby

In 1929, insurance agent, William E. Darby joined National Old Line Insurance Company. Through hard work and determination, Darby rose to president and then chairman of the board. In fact, the company drew nationwide attention because of its uncommon growth, and by the time he retired in 1972, National Old Line had grown to be a billion-dollar business.

Robert A. Young Jr.

After purchasing Arkansas Motor Freights Line Inc. in 1951, Robert A. Young Jr. began growing. By 1966, Arkansas Best Corporation, a multi-million dollar holding company with three primary subsidiaries, had been formed. Arkansas Best has been named as one of Forbes’  “Platinum 400 Best Big Companies in America.”

Witt Stephens

Wilton Robert Stephens, or “Witt” as he was more commonly known, founded what was once the largest brokerage firm off Wall Street, Stephens, Inc. in Little Rock, Arkansas. After World War II and through the latter half of the twentieth century, Stephens played a leading role in the political and economic standings of the Natural State.

Though Arkansas Capital has diversified since our initial founding in 1957, we have never altered our focus– to improve Arkansas’ economy. In the past 60 years, we have provided financing products of over $1.5 billion in capital through over 1,300 loans to meet the needs of small businesses to large scale operations. Learn more about our services and what we can do to grow your business by contacting us at our Little Rock office at (501)374.9425 or in Fayetteville at (479)444.8882.

 

New Leadership for AEAF

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Kathleen Lawson, executive director of Economics Arkansas; and Steve Rice, entrepreneurship instructor for the Arkansas School of Mathematics, Sciences and the Arts (ASMSA); have been elected as new members to the Arkansas Economic Acceleration Foundation (AEAF) Board of Directors.

AEAF was established in 1999 as a 501(c)(3) affiliate of Arkansas Capital Corporation. The mission of AEAF is to be a catalyst in an environment focused on ideas and initiatives that nurture Arkansas’s future entrepreneurs, especially young Arkansans living in underserved communities.

“The Delta Plastics Arkansas Governor’s Cup Collegiate Business Plan Competition and the Youth Entrepreneur Showcase for Arkansas are our most notable initiatives,” said Sam Walls, president of AEAF and president and COO of Arkansas Capital. “To date, more than 11,000 Arkansas youth and young adults will have competed, gaining a real-world entrepreneurial experience and a further development of the financial knowledge and skills they need after they leave school.

“Economics Arkansas and ASMSA have long supported AEAF and its mission,” Walls noted. “Through these organizations, Kathleen and Steve have a direct pulse on what teachers in our middle, junior high, and high schools say their students are hungry for when it comes to financial and entrepreneurial education. Their expertise will greatly help AEAF stay relevant and true to its mission in the exciting times ahead, especially given the ongoing advances of technology.”

In addition to his role at ASMSA, Rice is also the founder of “Start Here Little Rock,” a community-led initiative that seeks to close the gap in access to capital for underrepresented entrepreneurs. Lawson has more than 15 years of nonprofit management, including serving as the director of the Arkansas Discovery Network for six years before joining Economics Arkansas.

How (Not) to Start Your Business

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From topics as wide as “Opening a Business” to as narrowly-niched as “How to Start a Coffee Shop in Arkansas,” information, advice and “how-tos” are not hard to come by. It’s the Information Age, after all! The only problem? You can start a business with a mile-long list detailing exactly what to do in the process, but if you don’t know what not to do, you’re still sunk. That’s where our team at Arkansas Capital comes in to help with our top six mistakes to avoid.

Skip Market Research

Encouragement from your friends and family is a wonderful thing. Although you’ll need that support on your business journey, no amount of grandparents’ accolades can compensate for not having a defined target audience. Instead, use the motivation from your friends and family as that– motivation, and continue to research as much as possible. Hold focus groups, survey strangers and take advantage of Census data to narrowly pinpoint exactly who you’re trying to reach, where you can find them and how they’ll react to your services.

Wait too Long to Hire

We understand. Money is tight, this startup is your baby, and “if you want a job done right, you have to do it yourself.” Unfortunately, this is exactly the mentality that can cause founders to break or make poor business decisions. Learn to delegate tasks early on to promote better mental health and prevent a poor hiring choice out of desperation.

Use the Cheapest Professionals

Set a realistic business budget, but also don’t be cheap. Just because someone has an additional acronym behind their name, doesn’t mean they’re the best in the business. Trust us when we say that spending $300 per hour on a top-notch professional is a worth-while investment if it avoids a $30,000 mistake. Remember– just because you can do it all, doesn’t mean that you should.

Stay Offline

Not having a website in 2017 is the equivalent of opening a business, but not hanging a sign on your door. Take advantage of that market research that we previously discussed, and use your website and social media tools to promote your company. Don’t make the assumption that your ideal customers will find you. Go out and find them.

Wait too Long to Seek Financing

Predicting the future may not be possible, but that doesn’t mean you can’t try! Create ongoing financial forecasts from day one, so you know exactly how much cash flow your business can anticipate during each stage of the game. This way, you’ll spot any potential money mishaps early enough to seek capital before you’re struggling to stay afloat.

Don’t Research Your Loan Provider

Remember– lenders should put money in your pocket, not take it out. Whether you’re looking to start a business or grow your existing one, contact us today for information

5 Step Guide to Organizing Your Business

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We won’t lie to you– starting a business is hard. New competitors seem to be emerging every time you blink, you’re responsible for more money than just your family’s and you can’t seem to remember your login and password information to save your life. With businesses, just like with most things in life, it’s important to take baby steps to improve. Step one? Get serious about organization. Here’s how.

Be Like Santa

Just like St. Nick himself, make a list and check it twice. Before you wrap up work, write down each and every goal that needs to be met the next day. This way, you get the satisfaction of checking items off your “to do” list, and you can get a good night’s sleep knowing that important tasks won’t slip through the cracks.

Plan for Interruptions

Similar to a box of chocolates, “you never know what you’re ‘gonna get” on a given workday. The only thing that you can plan for with complete certainty is that your day won’t go as planned. That’s why you should account for that. Be realistic when making your daily goal list, and account for interruptions and time needed to address them. 

Always FAR

A recent study found that the average person spends over 4 hours each week searching for papers. Avoid being a part of that statistic by practicing FAR. Any paperwork that lands on your desk has three ways it can be handled– it can be filed (F), acted upon (A) or recycled (R). Do one of these three actions on the front end, as soon as you receive documents, to avoid clutter and those mile-high stacks of papers that seem too intimidating to address.

Don’t Forget Your Computer

This tip rings especially true for small business owners whose bulk of work relies upon a computer. As we all know, it doesn’t take long for your, once squeaky clean, desktop to become littered with files ranging in names from “Very Important” to “Don’t Delete!” To help with this productivity roadblock, practice the above rule with some digital modifications. Once you’ve used your file, file it away somewhere on your computer, work on it until it can be filed away, or simply drag it to the trash bin.

Plan Ahead

We’ll save you some time by telling you this– no matter how hard you try, you probably aren’t going to remember that you hurriedly shoved half of your business receipts in your utensil drawer at home and the other half on your office’s bookshelf. Go ahead and plan for next tax year by creating a “next year’s taxes” box. This box will be home for all bank statements, business expense invoices, online statements, charity receipts, etc. Your future self, and your accountant, will thank you.

It may seem small, but staying organized can dramatically impact the productivity, and therefore survival, of your small business. With these tips combined with our 60 years of lending expertise, we’re confident that your new or growing business can be a success story.

 

Year 1 of Entrepreneurship: Survival Secrets

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We have some tough news that you need to hear– starting a business is not like the movies. There are no bath tubs filled with hundred dollar bills to relax in, and you probably won’t wake up one morning to find that your business has skyrocketed to “viral status” online. Starting a business is hard work, and that’s why most entrepreneurs don’t last longer than a year. That’s where we step in. We’re here to let you in on the little-known survival secrets to help your business last past year 1, and hopefully, years 2+.

Know Your Goal

If you can’t articulate your goal, it’s time to stop where you are. And no, “making a ton of money” is not a goal. If you don’t have a set business goal that you work towards each day, you’ll give up. Why? Because you won’t know if you’re ever making progress. Set a SMART goal– one that is specific, measurable, achievable, relevant and timely, and let that goal be your mantra each day.

Believe in What You’re Doing

Have you ever watched “Shark Tank” and heard stories of wanna-be entrepreneurs working all night, pitching their ideas door-to-door each day, and following a strict ramen noodle diet in order to afford to launch their business? Outside of their unhealthy habits, these business people have one thing in common– they have an unshakeable faith that their business is important.

Get Organized

In this caffeine-fueled, adrenaline pumping stage so lovingly referred to as the “chaos year,” time seems to whir by. You’ve been rescheduling meetings with your business loan lender for two weeks, your printer is jammed and spraying black ink on your new carpet, and you can’t find the login information to your laptop anywhere! It’s time to get organized. It will take some work on the front end, but the relief it’ll bring to your business in the long-run is well worth it.

Break So You Don’t Break

Even those sharks we mentioned need to take breaks every now and then. Commit yourself to taking occasional breaks as much as you commit yourself to working hard. Not only will your health improve, but you might find that the “brain break” you’ve scheduled helps spur on new ideas.

Be Risky

You think it’s risky to start a business? Imagine if your business takes off, and you’re handling millions of dollars each day. Now that’s  risky! We don’t say this to undermine your initial step. We tell you this to explain that each and every day of being an entrepreneur is going to be risky. The secret is to embrace that risk and learn to look forward to it.

Don’t Do It Alone

No matter how strong your business plan is, you’re going to need some support along the way. Like we mentioned earlier, entrepreneurship is hard. Find a support system that encourages you, motivates you and keeps your pushing towards your goals. At Arkansas Capital, we’ve spent the last 60 years providing our expertise to new and growing businesses. Contact us today for lending support.

Taking the Fear out of the Lending Process

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What an exciting time! You’ve made the plunge to promote yourself from “employee” to “entrepreneur.” The first step has been taken… now what? You know your startup will need funding, but the idea of preparing a loan proposal or business plan is even more frightening than step one. Sit back, relax, and let us help you through it.

What is your business experience?

This is your chance to make a stunning first impression. In this cover letter, clearly and briefly describe who you are, your past business experience, what the nature of your business is, and how the loan will be used. Then, describe the history and activity of your business in addition to your management team’s qualifications. These points prove to lenders that your business not only has strong leadership, but that said leadership also has the experience and understanding needed to nurture a business into success.

How much money do you need and why?

Money might be a “taboo” topic of discussion around the dinner table, but now’s not the time to be shy. In this section, state the amount of money your company needs, and how you calculated this amount. Follow that up with a clear and specific account of what the loan will be used to fund and why it is needed.

How will you repay this loan?

Although loan terms will be negotiated with your lender, this is your chance to tell him or her exactly what you want. Use this section to describe the interest rate and terms you hope to receive, and to clearly lay out how your cash flow will help you meet each repayment schedule. This leads us to the second form of repayment that is important to be addressed.

What if you’re unable to repay the loan?

While it’s not fun to think of your business dream taking a slower start than anticipated, it’s important to be prepared. Here, you will state and describe the collateral you’re willing to pledge in case your business can’t generate sufficient repayment.

How are your personal and business’ finances?

In this last section, it’s time to seal the deal. Here, you will make sure that any owner with 20% or more interest in the business has submit their (less than 90 day old) financial statements. Then, if you’re a growing business, your complete financial statement, including balance sheet, income statement, net worth and interim financial statement, for the last 3 years will be included. If you’re a new business, this is where you will illustrate your projected balance sheet and income statement.

At Arkansas Capital, we understand that starting and scaling your business can be frightening. That’s why we’re here, with our sixty years of expertise, to support you every step of the way.

Small Business Spark

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Congratulations! If you’ve made it this far, you’re probably well on your way to either starting or growing your dream business. The truth is; though, whether your business is big, small, booming or just puttering along, every entrepreneur experiences the inevitable lull. A period where you don’t have quite the same amount of “get up and go” as you did when the idea of starting your business was first born. When moments like these arise, it’s important to not dwell on it, but instead, to stay energized and motivated. We hope this list from entrepreneurs, who have been in your same position, helps revive you to push through to work for your dream.

  • “Quality is more important than quantity. One home run is much better than two doubles.” –Steve Jobs
  • “It is human nature, as we get older, to look for stability in our lives. But if you want to be a successful entrepreneur, you have to fight against that somewhat. Starting a business requires movement. You cannot stay still.” –Robert Herjavec
  • “If people like you, they will listen to you, but if they trust you, they’ll do business with you.” –Zig Ziglar
  • “A brilliant idea doesn’t guarantee a successful invention. Real magic comes from a brilliant idea combined with willpower, tenacity, and a willingness to make mistakes.” –Lori Greiner
  • “Don’t be afraid to give your best to seemingly small jobs. Every time you conquer one it makes you that much stronger. If you do the little jobs well, the big ones will tend to take care of themselves.” –Dale Carnegie
  • “Negativity is a blood-sucking, poisonous, good-for-nothing weed that kills any creative spark you have in business and life. Keep an optimistic attitude no matter what.” –Barbara Corcoran
  • “Move out of your comfort zone. You can only grow if you are willing to feel awkward and uncomfortable when you try something new.” –Brian Tracy
  • “If people haven’t laughed at your dreams, then you aren’t dreaming big enough. Just keep pushing forward!” –Daymond John
  • “It’s very easy to be different, but very difficult to be better.” –Jonathan Ive
  • “Whatever the problem, be part of the solution. Don’t just sit around raising questions and pointing out obstacles. We’ve all worked with that person. That person is a drag.” –Tina Fey
  • “Great entrepreneurs are not just passionate about their idea, but have enough passion to weather all the obstacles and see things through to the finish line.” –Barbara Corcoran

The Do’s and Don’ts of Perfecting Your Pitch

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In this world of instant gratification, making business connections has to be quick. That’s why now, more than ever, perfecting your elevator pitch should be at the top of your career “To Do” list. Use our list of Do’s and Don’ts to make a big impact in a small amount of time.

Be Brief & Don’t Ramble

It’s called an “elevator pitch” for a reason. Respect your audience’s time by keeping your pitch short and sweet— between 10-30 seconds— no more time than a ride from floor 1 to floor 9 would take.

Be Relatable- Not Robotic

It’s true that practice makes perfect (we encourage practicing too!), but remember that you’re talking to a real person. Lose the industry jargon and “keywords” that you sprinkle throughout your resume.

Keep it Conversational

This point is twofold. First, don’t ramble off your laundry list of what you can do and how your company would be a great fit to work alongside theirs. Remember this is intended to be a dialogue not a monologue.

Also keep it conversational in tone. Think about your pitch the way you’d tell your best friend about your dinner last night. You wouldn’t say, “The exquisite appetizers and rustic, yet chic, décor made for a charming evening.” You’d say, “I ordered cheese dip at dinner last night, and it was so delicious that I licked the bowl then ordered a second round.” See the difference?

Be Persuasive, but Humble

You’ve got a reason to be pitching. You clearly bring something to the table. Don’t be afraid to share about your skills, specialties and background! That being said, don’t overshare by reciting all of your awards and accreditations.

Always Be Ready

You never know when an opportunity might arise. Yes, it could be at your monthly networking meeting, but there’s a good chance it could also be in the check-out line at your local grocery store.

Don’t Forget Business Cards

Your elevator pitch is a conversation, not a close. The whole purpose of the interaction is to start a relationship with the person you’re speaking with, so don’t forget to leave them with contact information to remember you.

What’s Next in Growing Your Business

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You’ve successfully maneuvered those challenging early years, and now you might be thinking, “what’s next?” Perhaps you need additional staff or plan to build a new location. All these things require money.

When your business is experiencing growth, a slowdown in cash flow can negatively impact short and long term goals. How can a small business keep up with the demands as it slowly begins to transform into a mid-size company?

Before you begin to panic, Arkansas Capital may be able to help you. Depending on the course and maturity of your business, as well as how much debt you have on the books, you can consider a variety of loans.

Under SBA 504 loans, businesses can purchase real estate, new machinery and equipment, or make improvements like landscaping. Additionally, if you need to renovate your existing office or facility, these funds can help. 

The SBA does not lend the money directly to entrepreneurs to grow a business, but sets certain stipulations for loans made by its partners (like Arkansas Capital). The SBA helps to eliminate some of the risk to lenders by guaranteeing that these loans will be repaid.

Financing a growing business is a good problem to have. Remember, Arkansas Capital is a champion of small businesses and wants to help you thrive. For more information about all our loan programs, click here.

Governor’s Cup Winners Announced at Awards Luncheon

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The Donald W. Reynolds Governor’s Cup is the premier, statewide business plan competition for college and graduate students. The awards luncheon was held April 17, 2017, at the Statehouse Convention Center with over 500 people in attendance. This year’s theme was “The Clash for the Cash,” and the event showcased the entrepreneurial talent of students from across our state.

These entrepreneurs were among more than 2,500 competitors who have been a part of the Governor’s Cup’s prestigious history, representing 839 teams from 24 campuses across Arkansas. The winners have taken away a cumulative $2.05 million in cash prize awards, including the $152,000 cash prize awards that were given away this year.

This year’s winners include:

Donald W. Reynolds Undergraduate Division Award:

First Place: AgChron Technology, University of Arkansas– $25,000

Second Place: Easy Dam, John Brown University– $15,000

Third Place: Pasture Parent, Arkansas State University– $10,000

Donald W. Reynolds Graduate Division Award:

First Place: Rejuvenics Technologies, University of Arkansas – $25,000

Second Place: Grox Industries, University of Arkansas– $15,000

Third Place: RED BioBattery, University of Arkansas – $10,000

Arkansas Farm Bureau Agriculture Division Award:

First Place: AgChron Technology, University of Arkansas– $5,000

Second Place: Ghost Pot Busters, John Brown University– $3,000

Delta Plastics Innovation Division Award, Undergraduate Team Winner:

Vitele, Harding University- $5,000

Delta Plastics Innovation Division Award, Graduate Team Winner:

Grox Industries, University of Arkansas- $5,000

Awards Luncheon Elevator Pitch, Undergraduate Winner:

Easy Dam, John Brown University- $2,000

Awards Luncheon Elevator Pitch, Graduate Winner:

Ghost Pot Busters, John Brown University– $2,000

The top two teams in the Reynolds Overall Graduate and Undergraduate teams now head to Las Vegas for the 10th annual Donald W. Reynolds Tri-State Competition, May 30 and 31, at The Mirage! Good luck and congratulations to our winners!

Since 2001, the Arkansas Economic Acceleration Foundation (AEAF), a 501(c)(3) affiliate of Arkansas Capital, has challenged students with ideas for new or better products or services to see if they could be profitable by putting it through a rigorous and real-world entrepreneurial process — while at the same time having the chance to win big cash awards! Thank you to the Donald W. Reynolds Foundation for their generosity.

For more information about the Donald W Reynolds Governor’s Cup, visit https://acccapital.com/governors-cup/.

Financing Your Expanding Small Business

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To be a successful small business, it takes tremendous passion and incredible work ethic. Nothing comes easy. And nothing is given to you.  504 GROW Loans reward the efforts of small business owners by providing access to more affordable funding that can be applied to a wide range of commercial growth needs.

  • Up to 90% commercial financing (50% lender first mortgage, up to 40% SBA 504 funding)
  • Below market, fixed interest rates (SBA 504 portion)
  • Long amortization terms (up to 20 years)
  • Loans are assumable by qualified, acquiring businesses
  • Large project sizes (SBA 504 portion up to $5.5MM)
  • First mortgage rate set by participating lender
  • $5.5MM for manufactures and loans that qualify under energy efficiency criteria (all others up to $5.0MM for the SBA 504 portion)

If your business needs major fixed assets such as equipment or real estate, you should consider a 504 GROW Loan. Eligible use of 504 Loan proceeds includes:

  • Buy land and construct new building
  • Buy land with an existing building
  • Remodel, convert, expand or renovate existing building
  • Green initiative projects
  • Purchase of long-life machinery and equipment
  • Associated fees and soft costs

“504 Grow Loans are absolutely the best way for small businesses to finance land, buildings and equipment with its higher advance rates, lower down payments and 20-year fixed interest rates. Additionally, it is a great refinance loan product,” says Al Hodge, Executive Vice President, Arkansas Capital.

 

If you’re ready to apply for a business loan now, click here to contact us. To receive more information on small business loans and to find the one right for your business, visit the loan products page.