Arkansas Capital Corp.: 55 Years and Still Growing

by Mark Friedman  on Monday, Aug. 27, 2012 12:00 am  

Nine years later, Martin de-clined to reveal revenue figures but said Little Rock Tours now has 45 employees.

He said ACC was critical in helping the company get off the ground. “When you’re getting started, everything is fragile, and they definitely got us through the fragile period and helped us become stronger,” Martin said.

Recession’s Aftermath

The recession hit some of the ACCG entities. The number of loans the Arkansas Capital Corp. division closed using money from the state of Arkansas fell from 42 in 2008 to 27 in 2010 and had rebounded only slightly, to 29, last year. This year’s pace has been similar: ACC closed 14 loans in the first two quarters.

The Six Bridges division also has seen a decline. It closed 32 loans in 2008 for a total of $19.3 million using federal money. In 2009, the number of loans plummeted to 16 for a value of $16.9 million. Activity has increased to 24 loans closed in 2011 with a value of $15.1 million. During the first half of this year, seven loans have closed for a total of $3.5 million.

“Have you talked to people in the finance business?” Walls asked. “Things are slow, and they certainly were slow in those periods of time you were asking me about.”

Walls said that ACC has never missed a payment to the state. ACC paid the state of Arkansas a total of $5.15 million in interest in 2005-08 but has only paid $1.24 million during 2009-June 30, 2012 because market rates have declined. The interest rate dropped from 2.16 percent in 2005 to 1.3 percent in 2008 to 0.82 percent as of June 30.

Between 2005 and June 30, 2012, ACC’s charge-off rate was 0.67 percent.

Walls said part of the reason for the low charge-off rate was because of the SBA guarantees. ACC officers also work with borrowers who develop problems paying back their loans.

“Look, we got into this together, and we’ll get out of this together,” he said.



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