The New Markets Tax Credit (NMTC) Program drives economic revitalization across Arkansas, from the Delta region’s agricultural communities to the urban centers of Little Rock and Fort Smith, and the growing Northwest Arkansas corridor. As a state with significant rural populations and economically distressed areas, Arkansas presents compelling opportunities for NMTC deployment that create jobs, expand essential services, and strengthen communities that have long been underserved by conventional finance. CBO Financial partners with manufacturers, agricultural enterprises, healthcare providers, and community organizations to structure financing solutions addressing Arkansas’s unique economic development challenges and opportunities.
Arkansas’s economy—characterized by agriculture, food processing, manufacturing, retail headquarters, transportation, and emerging technology sectors—creates diverse applications for community development investment. The state hosts Fortune 500 headquarters, including Walmart, Tyson Foods, J.B. Hunt, and Dillard’s, yet maintains persistent poverty in rural counties where median household incomes lag far below state and national averages. This economic disparity makes NMTC financing particularly valuable for projects serving Arkansas’s most economically challenged communities.
How the NMTC Program Works in Arkansas
The NMTC Program incentivizes private capital investment by providing federal tax credits to investors who support qualified businesses and real estate projects in designated low-income census tracts. Community Development Entities (CDEs) certified by the U.S. Treasury’s CDFI Fund receive allocation authority to deploy tax credit equity into qualifying projects throughout Arkansas’s urban neighborhoods, rural counties, and tribal communities.
In Arkansas, this financing structure addresses several critical challenges. The Arkansas Delta region, encompassing the eastern portion of the state along the Mississippi River, experiences some of the nation’s highest poverty rates and most persistent economic distress. Rural communities across Arkansas face healthcare provider shortages, aging infrastructure, limited broadband access, and declining traditional industries. Even in growth areas like Northwest Arkansas, pockets of distress exist where conventional lenders decline financing despite precise community needs and development potential.
The NMTC subsidy—approximately 20% of the qualified equity investment after fees—bridges financing gaps, preventing economically viable projects from achieving financial feasibility. Whether supporting a food processing facility expansion that creates jobs in a Delta county, developing a rural health clinic in a medically underserved area, or revitalizing a historic downtown commercial district, NMTC capital enables projects that conventional underwriting rejects despite their strong community impact potential.
Arkansas benefits from active local CDEs, including Southern Bancorp, which received $50 million in NMTC allocation in recent rounds and focuses on job creation in financially underserved areas across Arkansas and Mississippi. Organizations like FORGE Community Loan Fund and Communities Unlimited provide additional CDFI resources supporting small businesses and sustainable community development across rural Arkansas. These local institutions understand Arkansas market conditions and community needs, making them valuable partners for NMTC transactions.
For comprehensive information about Arkansas’s broader community development finance ecosystem, explore our CDFI program resources covering multiple capital sources that support economic growth in underserved markets.
Eligible Projects and Borrowers
NMTC financing in Arkansas supports diverse community development initiatives aligned with the state’s economic strengths and community needs.
Agriculture and Food Processing projects include poultry processing and value-added food manufacturing; grain storage and distribution facilities; aquaculture operations supporting Arkansas’s growing catfish and baitfish industries; agricultural equipment suppliers; and cold storage infrastructure. Arkansas’s position as a leading agricultural producer creates significant NMTC opportunities in food-related industries serving rural communities.
Manufacturing and Distribution projects encompass automotive parts manufacturing, building products and materials, furniture manufacturing, plastics and packaging operations, and logistics centers leveraging Arkansas’s central U.S. location and transportation infrastructure. The state’s manufacturing legacy, combined with a business-friendly environment, supports NMTC-financed industrial development.
Healthcare and Education projects address critical access gaps through federally qualified health centers, rural hospital expansions, dental clinics, behavioral health facilities addressing Arkansas’s substance abuse challenges, K-12 charter schools, early childhood education centers, and workforce training facilities preparing Arkansans for careers in manufacturing, healthcare, and technology sectors.
Commercial and Community Development includes downtown revitalization in small cities and county seats throughout Arkansas, mixed-use developments combining retail and housing, grocery stores serving food-desert areas, particularly in the Delta region, community centers providing social services, and facilities supporting nonprofit organizations serving low-income populations.
Technology and Innovation projects support technology business incubators, broadband infrastructure in underserved rural areas, fintech operations, and facilities that support Arkansas’s emerging entrepreneurship ecosystem, particularly in Northwest Arkansas.
Eligible borrowers include for-profit businesses, nonprofit organizations, cooperatives, real estate developers, and community facilities serving qualified low-income communities. Projects must be located in qualifying census tracts and demonstrate measurable community benefit through job creation, service provision to low-income populations, or economic revitalization of distressed areas.
CBO Financial provides experienced new market tax credit financing services, helping Arkansas borrowers navigate qualification requirements, identify appropriate CDEs with Arkansas allocation authority and mission alignment, and structure transactions optimized for community impact and financial performance.
Benefits of the NMTC Program for Arkansas
The NMTC Program delivers substantial benefits, particularly suited tArkansas’s development challenges and opportunities:
Rural Economic Development: Arkansas’s predominantly rural character makes NMTC particularly valuable for projects that create employment and infrastructure in small communities where conventional financing is difficult to secure. Manufacturing facilities, agricultural processing operations, and healthcare facilities benefit from capital subsidies, making projects feasible despite lower property values and revenues in rural markets.
Delta Region Revitalization: The Arkansas Delta faces extraordinary economic challenges requiring creative financing solutions. NMTC enables projects serving this region’s predominantly low-income, minority communities, where traditional development capital remains scarce despite clear economic potential. Agricultural operations, food processing, healthcare facilities, and commercial development benefit from NMTC capital bridging feasibility gaps.
Healthcare Access Expansion: Arkansas ranks among the states with the highest rates of rural hospital closures and healthcare provider shortages. NMTC-financed clinics, hospitals, dental facilities, and specialty care centers bring essential services to communities where residents previously traveled significant distances for basic care, improving health outcomes while creating quality employment.
Manufacturing Retention and Expansion: Arkansas’s manufacturing sector provides family-sustaining employment throughout the state. NMTC capital enables existing manufacturers in distressed communities to modernize equipment, expand capacity, and remain competitive, thereby preserving and creating jobs in areas where manufacturing is a primary source of employment.
Community Infrastructure: Small Arkansas cities and towns need downtown revitalization, modern commercial space, and community facilities that support economic activity. NMTC financing enables historic preservation, adaptive reuse, and new construction, creating vibrant commercial districts that attract residents and businesses.
Food System Development: Arkansas’s agricultural strength, combined with significant food deserts, creates opportunities for NMTC-financed food processing, distribution, and retail infrastructure that improve nutrition access, support local farmers, and create employment.
Whether you’re expanding agricultural operations, developing healthcare facilities, or creating community infrastructure in Arkansas, CBO Financial can assess your project’s eligibility and structure financing suited to the state’s unique market conditions. Apply for project evaluation to explore your options.
Regulatory & State Development Framework
Arkansas’s economic development framework supports projects aligned with NMTC objectives by having agencies that understand the state’s unique challenges and opportunities. The Arkansas Economic Development Commission (AEDC) serves as the state’s lead economic development organization, working to attract higher-paying jobs, expand and diversify state and local economies, and generate positive growth throughout Arkansas. The Commission offers financing programs, workforce training resources, and incentives that complement NMTC transactions, reducing total project costs and improving feasibility.
AEDC administers various grant programs supporting infrastructure, community facilities, and economic development activities in small cities and rural counties through Community Development Block Grants, Rural Services Block Grants, and Rural Community Grants. These programs often layer with NMTC capital to fund infrastructure improvements, site preparation, and public facilities supporting NMTC-financed projects.
Arkansas’s network of Community Development Financial Institutions—including Southern Bancorp, FORGE Community Loan Fund, Communities Unlimited, and People Trust Community Loan Fund—provides essential support for businesses and communities accessing community development capital. These organizations understand Arkansas markets, maintain relationships with national CDEs that hold NMTC allocation authority, and offer technical assistance to help borrowers navigate complex financing structures.
Regional planning and development districts throughout Arkansas provide localized support for project planning, grant administration, and coordination with state and federal agencies. These organizations understand specific regional needs, economic assets, and development opportunities, strengthening project design and community support.
CBO Financial maintains relationships with CDEs holding Arkansas allocation authority and specializes in navigating the state’s regulatory environment, coordinating with AEDC programs, and structuring comprehensive financing packages that maximize available resources while ensuring compliance with federal NMTC regulations.
Get Started with NMTC Financing in Arkansas
Ready to explore how New Markets Tax Credits can support your Arkansas project? CBO Financial’s experienced team understands Arkansas’s unique market dynamics—rural economic challenges, Delta-region development opportunities, agricultural sector strength, and healthcare access needs—and can structure transactions tailored to your specific circumstances.
From initial feasibility assessment through closing and compliance monitoring, we provide comprehensive support throughout the NMTC process. We evaluate projects by considering Arkansas-specific factors, including rural market challenges, coordination with state grant programs, agricultural seasonality, and workforce availability across segments.
Contact us today to discover how strategic community development finance can transform your vision into reality while delivering lasting benefits to Arkansas’s underserved communities.