The ABC Entrepreneurship Fund was established as a revolving micro-loan fund specifically to support the start and growth of small businesses owned by current and former students of Arkansas Baptist College (ABC) by providing loans that revolve and are re-loaned.
ABC anticipates a minimum of 3 rounds of funding each year. To meet that goal and respond to the demand, all loan payments and interest will be revolving meaning they will be available for future entrepreneurs. ABC will not require collateral but will require a personal guarantee by the borrower and regular reporting. Additionally, ABC will provide access to a range of resources including, but not limited to, mentors, technical assistance providers, and training opportunities
The goal of the ABC Entrepreneurship Fund is to support opportunities for current and former ABC Business students, especially those interested in starting their own businesses.
Startup or existing businesses owned by current or former students of ABC in the state of Arkansas .
Up to $5,000.
Borrowers who perform as agreed may apply for additional loans to support business growth. The maximum amount outstanding at any one time cannot exceed $5,000.
The loan term will be up to 3 1/2 years based on the loan amount and cash flow. Loans may have up to 6 months of interest only. Loans may be repaid early without penalty.
Borrowers will be charged an Annual Percentage Rate that is competitive with the market. There will be no closing fees and the interest rate will remain the same throughout the term of the loan.
No collateral is required. Borrowers will be required to sign a personal guarantee.
Loan decisions will not be based on your credit history and a credit report will not be pulled as part of the underwriting. After loan approval, your credit history will be reviewed and you may be required to develop a credit improvement plan to help position your business for growth and access to traditional funding institutions.
A committee will review all applications and make final decisions by a majority vote. Applicants may be asked to provide additional information or may be asked to meet with the committee.
Borrowers will execute loan closing documents to include:
Upon receipt of the fully executed loan closing documents, a check will be issued to the borrower from ABC.
Contact 501.420.1317 for more information