Nevada County Picayune and Gurdon Times Newspaper Archive

ADFA Touts Services In Community

By JOHN MILLER

Arkansas is unique for many things, but none more so than the Arkansas Development Finance Authority.

Arkansas is the only state in the nation with such an entity. This was pointed out Friday, Aug. 22, when members of the ADFA were in Prescott to tell what ADFA is and does.

Rush Deacon, ADFA president, is the only member of a state agency to hold the title of president. ADFA, he said, is a separate, self-supporting entity within the state government. It receives no state appropriations and must find its own financing in order to operate.

In essence, he said, ADFA is a state-owned bank, because most of the business it does is similar to what banks do. ADFA, he said, imports capital into the state by issuing bonds throughout the nation, while lending the money to those in need -- but in specific areas.

Actually, there are three primary areas ADFA works in: the agriculture/aquaculture division; housing; and the development finance division. Each of these divisions is overseen by a vice president.

However, Deacon said, one of the main problems ADFA faces in Arkansas is people don't know what it is, what it does or how to contact the entity to ask for help.

Because of this, he, Ted McNulty, the vice president of the agriculture/aquaculture division, Gene Eagle, vp of development financing, and LeRoy Emerson, vp of housing programs, have been touring the state talking about ADFA.

McNulty spoke to the group gathered at Prescott High School, about how ADFA works with farmers. He said members of his division visit with county agents to see what is needed in a given area.

In many cases, what is needed is a way for those young people interested in returning to the land to get started. Because of this, ADFA offers a beginning farmer program.

The beginning farm program is one of two programs designed to help the next generation of farmers in Arkansas.

McNulty said the other program is a farm link program where older farmers looking to retire help young farmers break into the business.

ADFA's agricultural loan program allows young farmers to borrow money to purchase the land or equipment they need, while the lender is able to loan it out tax free.

McNulty said the loans can be used to purchase land, equipment, buildings or stock, and has a $250,000 lifetime exemption.

Eagle followed to talk about development financing. He said with a pool bond issue closing for five counties in Arkansas soon, the ADFA will be able to do small projects.

His division offers an industrial development bond guaranty program to provide long-term, below market fixed interests rate loans to manufacturing industries.

In addition, an export finance program is offered to help small service companies, manufacturers and agri-businesses insure against risk to foreign buyers.

The division also offers a speculative building loan program which gives a source of financing to industrial development corporations, such as the Prescott-Nevada County Economic Development Office, so they can construct spec buildings and industrial facilities.

There is also a capital access program, which makes higher risk loans more attractive to participating lending institutions.

Eagle also discussed the waste water revolving loan program, which provides low interest rate financing to municipalities wanting to improve their waste water treatment facilities.

He said the cooperative revolving loan program gives low interest rate loans to agriculture cooperatives who are producing and/or marketing fruit and vegetable products.

The disadvantaged business enterprise program gives banks with working capital guarantees for disadvantaged business enterprise contractors.

There is also a college savings bond program, he said, with a $30 million budget to help students continue their education with capital needs.

Emerson spoke last on the housing program, saying a mortgage revenue bond program, low income housing tax credit program and a HOME program are offered through ADFA.

These programs provide low interest loans to low and moderate income first time homebuyers, while assisting in the development of low income apartment houses and finally, the HOME program, is a federally funded program with housing grant funds targeted to help low and very low income Arkansans.

For more information on ADFA or the programs offered under the authority, Deacon can be reached at 501-682-5900; Emerson's phone number is 501-682-5911; Eagle can be reached at 501-682-5905; while McNulty can be called at 501-682-5849.