Eligibility Criteria
The determination whether or not an ultimate recipient is eligible to receive funds under the IRP program will be based on assessing whether or not the applicant is eligible as a business concern and is the purpose of the loan itself eligible. The eligibility decision will be made after reviewing IRP regulations.
Maximum Loan Amount/Borrower's Investment
The maximum USDA IRP loan amount will be approximately $500,000. This represents ACRC providing funding of approximately $350,000 and $150,000 funded through the IRP program. In any case, the IRP dollars will never exceed 75 percent of the loan amount. All USDA IRP loans will be leveraged by the borrower's business equity, and/or cash injection.
The USDA funds will be utilized for the following:
- Acquisition of existing businesses, to include any conversions, enlargements, repairs, modernization, or development cost.
- The purchase of real estate including buildings and other improvements.
- The purchase of machinery and equipment, inventory and leasehold improvements.
USDA funds may also be used as working capital to provide needed cash to fund ongoing business operations.
Loan Terms
The ACRC loan terms will vary based on the type of project being financed, however, the loan policy of Arkansas Capital Relending Corporation will be adhered to in the following manner:
| Real Estate |
10 year fixed rate term with possible 15 year amortization. |
| Machinery & Equipment |
3 to 10 years, based on the life of the equipment. |
| Working Capital |
1 to 5 years, based on the need and collateral. |
**ACRC provides long-term financing with a fixed rate of interest. |
Interest Rates
An ACRC loan has a blended interest rate that is typically below the current market rate at the time of closing.
