The honest order of importance
For most small schools, money comes from these five places, roughly in this order:
- Tuition and fees, often paid through an Arkansas Education Freedom Account (EFA)
- Loans to bridge the gap before tuition arrives
- Donors and your own community
- Church partnerships (free or cheap space)
- Grants, usually small and for specific things like books, gardens or field trips
Grants come last on purpose. In our checks, very few grants pay rent or salaries for a new small school, and most of the ones that do are for nonprofits only.
1. Tuition, including EFA
Arkansas EFA is universal by law from 2025-26 ("there shall be no limitation on student participation"). For 2026-27, ADE lists $7,208 per student ($1,802 a quarter), or $8,011 for "Succeed" students.
The catch is timing:
- The first 2026-27 deposit to families was August 20, 2026.
- Money lands in the family's ClassWallet account first.
- Your school is paid when the parent accepts your ClassWallet payment request.
That's why startup costs (rent deposits, furniture, curriculum) come due before tuition does.
There are two ways in: become an EFA participating private school (accreditation track) or an approved service provider (microschools, learning pods and co-ops serving homeschool students). See Arkansas EFA for schools: participating private school vs. service provider.
2. Loans to bridge the gap
Loans you can actually get as a small school:
- The Lending Lab: $10K–$50K, built for small independent schools.
- ACC Capital: $5K–$50K for for-profit Arkansas businesses.
- SBA microlenders serving Arkansas: Communities Unlimited, FORGE, LiftFund and People Trust.
- Kiva: 0%, up to $15K.
- Christian schools: credit unions such as America's Christian Credit Union. ACCU's page names the problem directly: "quarterly state voucher disbursements disrupting your cash flow? An operating line of credit could be the answer."
Loans must be repaid, and most need a personal guarantee. See How to apply for a small-business loan (and what lenders will ask for).
3. Donors and community
Gifts are tax-deductible only when they go to a qualified organization such as a 501(c)(3) or a church (IRS Pub 526). An LLC can still raise money honestly, as long as it never calls gifts "tax-deductible." See Donations and crowdfunding for small schools: what's tax-deductible and how to raise money honestly.
Two tax-credit scholarship programs also move donor money to students:
- PIAK (Arkansas): donors get a 100% state tax credit.
- The new federal credit: up to $1,700 per donor, starting January 1, 2027. Arkansas has opted in. See Scholarship tax credits: Arkansas PIAK and the new federal credit (2027).
4. Church partnerships
Many Arkansas schools meet in church buildings on weekdays. A church can host your school as its own ministry or rent space to you as a tenant. Get it in writing. See Church-hosted schools and co-ops: the model, what to put in writing, what to ask.
5. Grants that fit small schools
These are real, but small and targeted:
- Walmart Spark Good ($250–$5,000; nonprofit private schools)
- Arkansas State Parks Field Trip Grant (up to $1,000; names private schools and homeschool groups)
- KidsGardening (any organization serving 15+ kids)
- Snapdragon and the Laura Bush Foundation (library books)
- Pets in the Classroom
- HSLDA Group Grants (homeschool groups)
See the full list and How to write a grant application as a small school.
A realistic first-year plan (example, not advice)
- Spring: enrollment contracts with deposits, and your EFA application.
- Summer: a small loan or line of credit to cover rent and setup.
- Fall: apply for one or two small grants for specific items.
- Year-round: keep clean books so next year's lender says yes.