The proposed bill aims to promote economic development by encouraging the allocation of funding to new businesses and those established within the last five years. It amends Arkansas Code Title 15, Chapter 4, Subchapter 2, by adding a new section, 15-4-221, which mandates that the Arkansas Economic Development Commission ensure that at least five percent of the budgeted funding for economic development programs, including community development block grants, is directed towards supporting initiatives for new businesses and services for businesses that have been operational for less than five years.

Additionally, the bill includes temporary language stating that the act will take effect on January 1, 2025. This initiative is designed to foster entrepreneurship and support the growth of newer businesses within the state, thereby contributing to the overall economic development of Arkansas.