By John Lyon
Arkansas News Bureau
LITTLE ROCK — Arkansas’ small businesses will get a boost from the federal stimulus, Sen. Blanche Lincoln, D-Ark., said Friday.
Lincoln noted the U.S. Treasury Department this week approved using $55 million from the stimulus to provide tax incentives for economic development projects in lower-income and rural communities in Arkansas.
“I don’t have to tell anyone here that we’ve been living through a once-in-a-generation economic crisis, and for more than a year our nation’s economy has been in tumultuous times,” Lincoln said at a news conference at the Little Rock office of Arkansas Capital Corp.
“We’re seeing some hopeful things. We’re not out of the woods yet; we know that. We’re still working on it. But quite frankly, what’s going to bring us out of the woods … are our small businesses,” she said.
The $55 million was awarded to Heartland Renaissance Fund, an affiliate of Arkansas Capital Corp. The money is part of $1.5 billion in awards the Treasury Department approved for 32 organizations under the New Markets Tax Credit program.
Heartland Renaissance received the second largest amount to be dedicated to efforts in a single state.
Sam Walls, CEO of Arkansas Capital Corp., said Lincoln worked to include funding for the New Markets Tax Credit program in the American Recovery and Investment Act.
“She went to bat for us,” he said.
Small businesses can apply to Heartland to receive tax credits under the program. Heartland, the governor’s office and the Arkansas Economic Development Commission will decide which projects qualify, Walls said.
Projects in rural communities will be “a particular focus,” Lincoln said.
Linda Nelson, Arkansas district director for the U.S. Small Business Administration, also announced two new loan programs.
The America’s Recovery Capital program will provide no-interest loans of up to $35,000 to viable small businesses that are suffering immediate financial hardships to help them make their principal and interest payments on existing, qualified debt, Nelson said.
Also, the Dealer Floor Plan will provide guaranteed loans to finance inventory for eligible car, recreational vehicle, boat and other dealerships that are facing challenges because of uncertainty in the auto industry, she said.
