I have talked to several Community Action directors in the state of Arkansas that said they would love to go paperless but they thought the state required them to keep paper copies of all their applications and associated paperwork.  According to state law, an electronic image of a document must be treated the same as the paper document.  Here is the actual language of the law.
  • (a) If a law requires that a record be retained, the requirement is satisfied by retaining an electronic record of the information in the record which:
    • (1) accurately reflects the information set forth in the record after it was first generated in its final form as an electronic record or otherwise; and
    • (2) remains accessible for later reference.
  • (b) A requirement to retain a record in accordance with subsection (a) does not apply to any information the sole purpose of which is to enable the record to be sent, communicated, or received.
  • (c) A person may satisfy subsection (a) by using the services of another person if the requirements of that subsection are satisfied.
  • (d) If a law requires a record to be presented or retained in its original form, or provides consequences if the record is not presented or retained in its original form, that law is satisfied by an electronic record retained in accordance with subsection (a).
  • (e) If a law requires retention of a check, that requirement is satisfied by retention of an electronic record of the information on the front and back of the check in accordance with subsection (a).
  • (f) A record retained as an electronic record in accordance with subsection (a) satisfies a law requiring a person to retain a record for evidentiary, audit, or like purposes, unless a law enacted after March 19, 2001, specifically prohibits the use of an electronic record for the specified purpose.
  • (g) This section does not preclude a governmental agency of this State from specifying additional requirements for the retention of a record subject to the agency’s jurisdiction.

I recommend that you verify this with your legal counsel and also your funders.

Here is a good article that was written by CAPLAW on this subject: https://www.hemingwaysolutions.net/what-are-legal-requirements-for-community-action-who-wants-to-go-paperless/

Federal paperless requirements