Arkansas Capital Corporation: 10 Key Things You Must Know

Overview

Arkansas Capital Corporation (ACC) is a private, not-for-profit company based in Little Rock, Arkansas. Established to promote economic growth and development, ACC leverages public and private partnerships to provide financing solutions that stimulate economic development throughout the state. As a unique exemplar of public-private cooperation, it plays a pivotal role in boosting the economic landscape of Arkansas. Through the following points, you’ll discover detailed insights about its origin, operations, and impact.

1. Foundation and Growth

Arkansas Capital Corporation was founded in 1957 as the First Arkansas Development Finance Corporation. The initiative was spearheaded by Herbert L. Thomas Sr., with the intent to enhance economic prosperity through financial services. ACC's initial framework aimed at providing secured, term industrial loans, positioning itself as a critical component in Arkansas’s drive to maintain and create jobs. Over decades, it grew from a modest operation into a multifaceted organization supporting diverse economic sectors.

2. Financial Services

ACC provides an array of financial services designed to meet the needs of startups, expansions, and business acquisitions. They offer conventional commercial loans, SBA 504 loans for purchasing fixed assets, and USDA Business & Industry loans. These financial products are instrumental for businesses in acquiring capital for real estate, equipment purchases, and working capital, among other needs.

3. Small Business Support

Arkansas Capital Corporation is particularly known for its commitment to empowering small businesses through SBA lending. By acting as a facilitator and lender for SBA 504 and 7(a) loan programs, ACC ensures that small businesses have access to long-term, fixed-rate financing options crucial for sustainable growth and competition in the marketplace.

4. Educational and Entrepreneurial Initiatives

ACC actively propels entrepreneurship by organizing educational initiatives such as the EDGE Summit and the Governor’s Cup Collegiate Business Plan Competition. These platforms not only foster entrepreneurial skills among students and young professionals but also spotlight innovative ideas and provide networking opportunities vital for budding entrepreneurs.

5. Venture Capital

Recognizing a gap in local venture capital sources, ACC formed Diamond State Ventures, which is a venture capital initiative aimed at funding start-ups and growing enterprises. This move is part of ACC's broader strategy to foster innovation and business expansion in Arkansas, appealing to both local and foreign investors.

6. Tax-Exempt Status

As a non-profit organization, ACC does not distribute dividends or profits to stockholders but reinvests earnings to further economic development objectives. This structure enables ACC to focus wholeheartedly on benefitting the communities it serves through innovative financial products and services.

7. Community Development

Committed to revitalizing communities, Arkansas Capital Corporation collaborates with local banks and government entities to deliver projects that benefit the regional economy. They also engage in partnerships aimed at promoting internet use and technology adoption to bridge economic and digital divides.

8. Policy and Leadership

Through its leadership and innovative policies, ACC has garnered numerous accolades. Executives like C. Sam Walls contributed significantly by diversifying ACC's offerings and expanding its impact across the state. Their strategic focus on economic welfare reflects in the continuous adaptation and expansion of their services.

9. Public-Private Partnership

One of ACC's distinguishing features is its public-private partnership model, which leverages resources from utility companies, private investors, and government funds. This model ensures a stable and extensive capital base, enabling ACC to undertake substantial economic development projects across Arkansas.

10. Economic Impact

Since its inception, Arkansas Capital Corporation has provided over $1.7 billion in capital to Arkansas businesses. This massive infusion of capital has played a decisive role in the development of diverse sectors, helping countless businesses thrive and sustain economic activity, thus positively influencing the employment landscape.

Conclusion

Arkansas Capital Corporation stands as a testament to effective public-private collaboration, driving economic growth through tailored financial solutions and entrepreneurial support. It remains an integral part of Arkansas’s economic infrastructure by fostering innovation and facilitating access to capital. The corporation’s ongoing commitment to community development and support for future entrepreneurial endeavors keeps its mission relevant and vital for continuous economic progress. Would you like to learn more about how specific ACC programs impact Arkansas businesses?