The OnRamp Fund is a new business loan program designed to address the barriers faced by many Arkansas small businesses seeking capital. OnRamp launched in November 2023.
OnRamp is not a loan. Instead, it is a loan guarantee model for established small businesses in Arkansas owned by women, minorities, veterans, rural entrepreneurs, and socially and economically disadvantaged individuals who qualify. Businesses must have generated revenue for at least six months prior to applying.
The program provides a 100% guarantee to lenders for OnRamp loans. If the business owner does not have an existing relationship with a bank or if their bank does not want to participate in the program, the OnRamp team helps match the business owner with willing lenders.
The amount a business can borrow is based on its revenue. The maximum loan is 10% of revenue, up to $10,000.
The program provides critical capital and support needed to position small businesses for growth and access to traditional funding sources.
OnRamp’s goal is to fill gaps in lending by addressing primary reasons for business loan denials, including credit scores below lender minimums; insufficient collateral to secure a loan; and requests for very small loans that are below other lenders’ minimum size.
Businesses must have generated revenue for at least six months prior to applying.
Access to OnRamp is exclusive to businesses engaged with the Arkansas Small Business and Technology Development Center.
OnRamp supports business growth through hands-on technical assistance. Business owners work with ASBTDC to complete the application package. Businesses interested in applying complete a questionnaire to begin the process.
OnRamp is a partnership between private funders, Community Development Financial Institutions (CDFIs), banks, credit unions, and ASBTDC. The program is administered by the Arkansas Community Foundation.
Delta Owned, a project launched by the Winthrop Rockefeller Foundation and Communities Unlimited in 2019, inspired OnRamp’s creation.
OnRamp Frequently Asked Questions
Fitness Studio, Apparel Store Receive Microloans with OnRamp
Breakout Lifestyle Fitness is a boutique fitness studio in Little Rock offering personal training and nutrition coaching. Owner Darrick Collier Jr. started his business during the height of COVID.
Unexpected delays and setbacks left him in a tough financial position and behind on his marketing efforts. Additionally, waiting for new membership draft revenues to arrive the following month left little money available for advertising and promotions.
The business needed to implement marketing strategies to increase its sales funnel opportunities, stabilize cash flow, and be able to hire paid staff to support its new members. However, because of credit score challenges, Collier was unable to obtain a business loan or line of credit from his bank.
At ASBTDC’s Startup Crash Course workshop, Collier learned about the OnRamp program and was immediately connected with the center’s Arkansas Business Navigator team.
They reviewed Collier’s financial records and determined he was eligible for the program. Next, the team helped him develop a business model outline to explain how his business would utilize the microloan.
The OnRamp loan guarantee made him bankable with a local CDFI. He secured a microloan in December and is busy refreshing and revamping his business for new clientele in 2024.
Dice Apparel, an urbanwear clothing business owned by Ismail Al Mughrabi, received a microloan of $6,500 to expand its winter inventory for the holidays.
Al Mughrabi had been unable to secure the loan through his commercial lender, as it was too small an amount for them to lend. The OnRamp program offered him a way to quickly access capital in time for the holiday shopping season.
Phoenix Youth and Family Services, an Arkansas Business Navigator partner, told Al Mughrabi about the OnRamp loan fund and directed him to ASBTDC.
The Business Navigator team assisted him with the application and provided timely feedback to complete the process within a week.
Note: Based in Monticello at the time of the loan, Dice Apparel has moved to Greenville, Miss.
