(a) The Bond Guaranty Program was created to provide long-term, tax-exempt, and taxable financing for businesses expanding or locating in Arkansas.
(b) Although the city or county may issue the revenue bond, the company is still responsible for paying the principal and interest.
(c)
(1) Under this program, the Arkansas Economic Development Commission “guarantees” timely payment of principal and interest, up to five million dollars ($5,000,000) principal per bond issue, to the bondholders.
(2) This guaranty gives the bonds a better rating, thereby making the bonds more attractive to investors and reducing the company’s cost to borrow money.
(d) For additional information contact: Business Finance Division Arkansas Economic Development Commission 1 Commerce Way, Ste. 601 Little Rock, Arkansas 72202 (501) 682-1121