ARMS Program Incentives
The ARMS Program is an initiative that injects market forces into underutilized Army facilities; those market forces stimulate facilities reuse. Reuse converts underutilized property into growing industrial parks open to the private section. Currently, $206 million of ARMS seed money has been invested at over ten sites thus far. Properties once seen as liabilities are now firm assets, communities benefit from new and steady revenue streams; and the Army "pays its way" by reducing its cost during downsizing -- ARMS has developed into a winning program with an inviting future.
This program makes underutilized Army facilities available to the private and public sector. ARMS encourages business interests to become tenants at its facilities. Properties are refurbished to meet the needs of the new tenant and are financed by ARMS. The subsequent lease includes these upgrades with no interest added. Facilities are managed and marketed by private sector contractors strongly motivated to meet corporate and Army expectations. The Army approves all facility and equipment use. Tenants contract directly with the facility use contractors, not with the Army.
The ARMS Program also offers Lake City tenants a loan guarantee, with low interest, for working capital, leasehold improvements, equipment purchase, raw material purchase and other uses. The ARMS Loan Guarantee Program, a cooperative program between the Army and USDA Rural Development, is a tool for prospective commercial tenants to capitalize on this business opportunity. The Army provides this program's funding, and the USDA administers the loan guarantee program. The ARMS Program guarantees a portion of the loan rather than lending directly. A commercial lender finances the entire loan and assumes the risk on the remaining non-guaranteed portion of the loan. Once a borrower has located a lender interested in financing their loan and has submitted a full application to the lender, the ARMS Loan can be processed in 120 days.
Additional ARMS Information: Operation Enterprise