Microbusiness Open for Business
The Arizona Microbusiness Loan Program

Small businesses, particularly those with less than five employees known as “microbusinesses,” are the heartbeat of Arizona’s economy. Microbusinesses drive economic development and investment as well as create jobs for thousands across the state. Making funding available to help these microbusinesses grow their businesses will impact individuals, families, and communities across the state. 

In the News

Earnest House – Microbusiness Loan Program with Katie Hobbs
On August 8, Governor Hobbs publicly launched the new Arizona Microbusiness Loan Program, which offers favorable loans to the state’s smallest businesses (fewer than five employees) to facilitate economic development and foster job creation in communities across Arizona. Today, Governor Hobbs paid a visit to one of the first businesses to be issued a loan through the program, stopping by Earnest
Governor Hobbs at Microbusiness Event
Businesses with five or fewer employees can access loans through State Partner Community Development Financial Institutions or Community Non-Profit Lending Organizations Phoenix, AZ – Today, Governor Katie Hobbs, in partnership with the Arizona Office of Economic Opportunity (OEO), launched the Arizona Microbusiness Loan Program to foster economic development and job creation in communities
Arizona Microbusiness Loan Program Grant Opportunity
Round Two Application now open to experienced lenders The Arizona Office of Economic Opportunity (OEO) is now accepting grant applications for a second round of grants for the new Arizona Microbusiness Loan Program. The goal of the program is to bolster economic development across the state, create and retain jobs, and support businesses with five or fewer employees by providing low-interest loans

How it works

The State of Arizona has designated $5 million to be available to Arizona’s microbusinesses in the form of loans administered by the Office of Economic Opportunity  in partnership with Community Development Financial Institutions (CDFIs) and non-profit community lending partners across the state. 

  • Microbusiness loans can range from $2,000 - $50,000 per qualified business. Microbusiness owners who are interested in applying for a microbusiness loan can directly visit their regional lending partner application page at one of the links below. 
  • CDFI lenders and community non-profit partners to provide additional financial education and training  to support to loan recipients, ensuring the microbusinesses recipients have access to training and resources to improve outcomes of each loan. 
  • Partners like Startup Tucson, Local First Arizona, Bureau of Indian Affairs Division of Capital Investment, Navajo Nation State Small Business Credit Initiative, Northern Technology and Business Incubator and others will supplement awarded microbusiness loans by offering financial education and training, business planning and forecasting, accounting, credit counseling and other areas to accompany funding to ensure successful growth and development of microbusinesses loan recipients and deliver positive outcomes for borrowers.
  • Visionary state leadership from Arizona’s Executive and Legislative branches support and champion public investment designed to facilitate economic growth and development and foster job creation in every corner of the state.

 

CDFI PARTNERS

COVERAGE ACROSS ARIZONA

 

By the Numbers

 

The impact of microbusinesses in Arizona local communities

Workforce
Arizona has 85,491 microbusinesses

employing 155,449 people (average 2.1 employees per business).

 

Traffic & Population
Microbusinesses make up 40%

of all businesses in Arizona and employ approximately 5% of the total Arizona workforce. 
 

GPS Map
The top three counties

with the largest percentage of total employment working at microbusiness establishments are Yavapai (9%), Santa Cruz (8%) and Gila (7%).
 

The top three industries with the largest percentage of total employment working at microbusiness establishments

 

Professional, scientific and technical services

Professional, scientific and technical services

17.3%

Commercial Real Estate

Real estate and rental leasing

17.0%

Other Services - Automotive Industry

Other services

13.8%

*Source: Bureau of Labor Statistics, Q2 2023

 


 

Frequently Asked Questions

 

Are there Microbusiness Loan Programs covering Maricopa and Pinal Counties?

At this time, while OEO has dedicated lending partners selected for the majority of counties and Tribal communities throughout the state, OEO has not yet selected dedicated lending partners for Maricopa or Pinal Counties.

However, our current lending partners are capable and willing to provide loans to those interested and qualified microbusiness owners who reside in one of those counties. For Maricopa County, please follow the link to our partner Growth Partners Arizona, and for Pinal County, those interested can inquire about microbusiness loans with CIC or Groundswell Capital.

After dedicated partners are selected to cover Maricopa and Pinal Counties in our next round of partner solicitation, their contact and coverage information will be added to this web page.
 

Can the grant funding available to community lending partners be used to support the administrative costs of running a loan program? 

The grant funding cannot be used to support administrative costs of running a loan. Per Laws 2023, Chapter 136, Section 4 all funds must be used to loan to microbusinesses.


What uses are permitted for the use of loan funds received by microbusinesses? 

Per Laws 2023, Chapter 136, Section 4, a microbusiness loan provided by an eligible entity may only be used for the following:

  • Operation of the microbusiness, including creation and retention of jobs.
  • Working capital.
  • Acquisition or improvement of real property.
  • Acquisition of machinery and equipment.
  • Refinancing of debt obligations.

Is this federal funding?

The Microbusiness loan program is solely funded by the state and established by the the fifty-sixth legislature, first regular session of 2023.


How can microbusiness owners apply for these loans?

Microbusiness owners can apply directly to the community lending partner that covers their area of the state, listed above. 

For more information, please contact

Jeff Hecht, Office of Economic Opportunity, Marketing and Communications Manager | 602-703-9901 | [email protected]