Conductor of Conway resource map increases entrepreneurship support

Entrepreneurship activity and support picked up across many levels in Arkansas last week led by the Conductor of Conway issuing its first resource map.

The entrepreneurial support organization said the Arkansas Entrepreneurship Resource Map is a comprehensive guide to small-business support organizations across the state. The 36-page guide lists organizations in various categories that support entrepreneurship, and business growth and development.

“Arkansas is becoming the destination of choice for entrepreneurs in the heartland, with startup communities bubbling up all across the state,” the guide says in its opening.

“These growing economies receive support from a number of organizations, each with its own specialty and area of expertise. This guide is intended to be used as a tool for current and aspiring business owners to identify which organization can best suit their needs.”

The guide focuses on three primary categories: direct entrepreneur support, chambers of commerce and economic development organizations.

“Knowledge of available resources is crucial to an entrepreneur’s success,” Tiffany Henry, director of entrepreneurial communities at the Conductor, said in a news release. “Arkansas has such a rich fabric of support organizations for every spectrum of the entrepreneur.”

Lack of resources is a critical problem for entrepreneurs in the state and the region, according to a report from Heartland Forward of Bentonville.

Venture capital is difficult to secure, but it’s especially a problem for regional entrepreneurs. “Despite producing over 35% of the U.S. GDP and 33% of new firms founded, the Heartland has received only about 10% of the VC investment since 2016,” the organization said.

Female-owned businesses struggle even more.

“Nationally, female-founded firms received an average of $3 million in capital per completed deal over the past five years, with those in the Heartland receiving an average of only $1.7 million,” the report said.

A new nonprofit organization to support entrepreneurs in Northwest Arkansas was announced Wednesday.

The Walton Foundation is providing financial support for Entrepreneurship for All, a yearlong business accelerator program in Northwest Arkansas. It will offer a pitch contest this summer in both English and Spanish.

Also Wednesday, the Little Rock Venture Center continued to roll on successfully

with its ICBA ThinkTECH Accelerator program, offered for the third year in partnership with the Independent Community Bankers of America and the state of Arkansas.

During the demonstration day, fintech participant Beauceron Security of Canada was named “MVP” for its extraordinary effort, spirit of collaboration and the platform’s potential to solve for community bankers’ business challenges and opportunities.

The 2021 program was held entirely virtually and included participation from hundreds of outside mentors — including venture capital firms and regulators — who gave advice to the nine fintech participants.

Gov. Asa Hutchinson, who spoke at the event, noted the success of the Venture Center’s programs and of entrepreneurship in Arkansas.

“One look at this year’s group will confirm that the state of fintech is solid gold, and that Arkansas retains its crown as the leader in financial technology, entrepreneurship and high-tech leadership,” Hutchinson said.

SECURITIES FRAUD

The Arkansas Securities Department is urging Arkansas investors victimized in an alleged $185 million precious metals investment scheme targeting over 1,600 investors to immediately file a claim with the court-appointed receiver.

Last week, the Securities Commissioner entered a final cease and desist order against Metals.com, more popularly known as TMTE Inc. or Chase Metals Inc., directing the company to stop violating securities laws in Arkansas.

The commissioner found that the company provided unregistered investment advice and committed investment adviser fraud in selling precious metals to Arkansans.

Investors who believe they were defrauded have until April 30 to file the appropriate claims.

The receiver in the case is Kelly Crawford, who can be contacted at kelly.crawford@ solidcounsel.com for more information.

INCREASED SUPPORT

The U.S. Small Business Administration is increasing the maximum amount that small businesses and nonprofit organizations can borrow through its covid-19 Economic Injury Disaster Loan program.

Starting April 6, the Small Business Administration is raising the loan limit from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months and $500,000.

The low-interest loans provide small businesses with working capital to help businesses make it through the pandemic.

“Increasing the lending limit will provide greater access to long-term capital to assist in rebuilding businesses across our state,” said Edward Haddock, director of Small Business Administration operations in Arkansas.

This new relief builds on the Small Business Administration’s March 12 announcement that the agency is extending deferment periods for all disaster loans, including covid Economic Injury Disaster Loans, until 2022 to offer more time for businesses to build back.

Businesses that received loans under limits do not need to submit requests for an increase at this time; the Small Business Administration will contact them.

ARKANSAS MADE

The Arkansas Department of Agriculture is opening up its Arkansas Grown and Arkansas Made branding effort to all grower and producer members.

Logos of Arkansas Grown and Arkansas Made are now available at no charge for members to use on promotional material and on their websites.

Before the change, memberships were tiered, and benefits were based on membership levels and fees. The more than 900 producers and members of the program all will have the same benefits.

The program also now is open to retailers, restaurants and other companies that sell Arkansas Grown and Arkansas Made products. Membership is priced at $250.