TO ENCOURAGE THE AWARD OF ECONOMIC DEVELOPMENT FUNDING TO NEW BUSINESSES AND BUSINESSES ESTABLISHED WITHIN THE PREVIOUS FIVE YEARS.

HB 1372 requires Arkansas' Economic Development Commission to direct at least 5% of its economic development funding - such as community development block grants - toward supporting new businesses or businesses established within the past five years. It specifically targets startups and businesses based in Arkansas, directing funds to programs that assist new business owners or services aiding businesses under five years old. The bill mandates this allocation for all eligible economic development programs, effective January 1, 2027. This policy change directly shifts funding priorities to support newer businesses through existing state economic development mechanisms.