Technology Development Program (TDP)

Technology Development Program (TDP)

Funds Arkansas science and technology projects with royalty-return financing linked to commercialization progress.

The Technology Development Program (TDP) is a royalty-back financing instrument administered by the Arkansas Economic Development Commission (AEDC), formerly part of the Arkansas Science and Technology Authority (ASTA) before ASTA programmes were consolidated into AEDC in 2017. TDP provides up to $100,000 in financing to Arkansas science and technology projects that demonstrate clear commercialisation potential, using a royalty-repayment structure rather than traditional debt or equity. The programme sits within AEDC's Division of Science and Technology and complements the larger Seed Capital Investment Program for companies that require smaller, earlier-stage capital.

Under the royalty-back structure, the applicant repays the investment as a percentage of revenues, with the royalty rate set between 0 and 5 percent, and the repayment term capped at 10 years. This structure is particularly suited to companies that have uneven early revenue but a credible long-run commercial trajectory. Eligible applicants must be for-profit companies registered and operating in Arkansas; nonprofits, universities, and individuals are excluded. The programme targets science and technology sectors, including AI infrastructure, biotechnology, hardware, and manufacturing, though eligibility ultimately turns on the commercialisation potential of the specific project rather than sector classification alone.

TDP operates on a rolling basis with no fixed application deadlines, and applicants initiate the process through AEDC's Science and Technology Division. Because the royalty rate and term are negotiated as part of the award, applicants should come prepared with financial projections that support a credible repayment scenario. The programme is designed for early-stage projects where a traditional loan with fixed interest payments would be prohibitive, and it fills a distinct gap between grant programmes and conventional venture or bank financing in the Arkansas technology ecosystem.