Arkansas
State Resources
Arkansas is the only state where diamonds can be mined and kept by the finder. It is named the “Natural State” due to its abundance of parks, forests, rivers, and mountains including the Ozarks. It is also well-known for the home of the largest retailer, Walmart. The Arkansas Economic Development Council (AEDC) works “strategically with businesses and communities to create strong economic opportunities.” Key industries of interest include aerospace and defense, information technology, metals, and others.
AEDC maintains a list of various funding sources including angel investment, venture capital, specialized loan programs, and more. Small businesses can also apply for various tax credits, like a R&D tax credit. AEDC also provides a list of small business incentives, ranging from grant programs to investment programs and targeted incentives programs.
Business & Technology Accelerator Grant
The Arkansas Business and Technology Accelerator Grant Program (ArBTAGP) seeks to provide an established Arkansas technology-based company with funds up to $250,000 towards projects that stimulate innovation for the next generation of technology businesses. Eligible businesses include companies engaging in advanced materials and manufacturing systems; biotechnology, bioengineering, and life sciences; information technology, software development; internet-enabled technology or service solutions; agriculture, food processing, and environmental sciences; and transportation logistics. Interested parties must apply through AEDC.
Arkansas Venture Capital Development Fund
The Arkansas Development Finance Authority, a division of the Arkansas Department of Commerce, oversees the Arkansas Venture Capital Development Fund. This fund provides Arkansas technology-based companies, in various stages of growth and development, with matching investments for private equity funding from angel, seed and venture capital investors. The maximum investment is $1,000,000. It is recommended that interested parties review the Program Guidelines.
Seed Capital Investments
Through the Seed Capital Investment Program (SCIP), the state makes direct investments in technology-based companies that cannot secure enough capital through traditional sources to reach commercialization. Investment is made in the form of debt financing, equity financing, a royalty participation agreement, or a combination thereof up to $500,000.
SBIR/STTR Matching Grant
Arkansas provides matching funds for both Phase I and Phase II SBIR/STTR awards. Phase I matching awards cannot exceed $50,000; while Phase II matching awards cannot exceed $100,000.
