Thanks to such a low cost of living, owning a business in Arkansas means that each dollar from financing will go further in driving your business forward compared to more expensive areas. Remember, business loans were first and foremost created with the idea of helping small businesses reach the next rung of success. Depending on your company’s mission, that rung might be a little bit easier to reach in Arkansas.

To find the best rate, you should look at both local and national options when it comes to small business loans in Arkansas, especially depending on your location or industry. If your company works in a rural or economically depressed area, you might be able to get grants or special, low-interest business loans. If your company works in technology or science, you might also be eligible for special funding in Arkansas. Regardless, you should evaluate how each funding option will help your business grow in the long term.

Once you know how you want to structure your Arkansas business (such as a sole proprietorship or corporation), you will have to register your business with the Arkansas Secretary of State. Depending on your industry, you might need a state license in the Natural State. Once your company is official, you can start applying for loans based on how long you’ve been open, your annual revenue, and your creditworthiness. Specific qualifications and requirements will depend on the lender, so do your homework.

While you shouldn’t base your entire business plan around receiving grant funding, an impressive array of grants are available to eligible Arkansas businesses. The Central Arkansas Library System has a well-known program that can help entrepreneurs find and apply for grants. The Arkansas Early Childhood Commission offers grants to businesses focused on childcare, while the Arkansas Economic Development Commission Division of Science and Technology has options specifically for tech, applied research, and other innovative Arkansas businesses.

The Arkansas state government and local business leaders are currently very interested in growing the state economy by supporting small businesses. In recent years, the state has pushed to become an IT business hub, so many groups are looking to help tech startups thrive like Startup Junkie. Moreover, the Arkansas Economic Development Commission maintains a great list of resources available to the state’s entrepreneurs.

An SBA preferred lender is a lender that’s been approved by the Small Business Administration to administer SBA loans without additional approvals from the SBA. Typically these lenders have years of experience and can approve SBA loans faster than non-preferred lenders.

SBA loans are backed by the government and offer lower interest rates than other types of small business loans. They typically require a minimum time in business of two years and a credit score of 650+.