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
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
Community Partners
Community Food Bank of Southern Arizona | YWCA Southern Arizona,
Startup Tucson | Local First Arizona | The Robert Wood Johnson Foundation
Covered Counties
Cochise | Graham | Greenlee | Pima | Santa Cruz
Community Investment Corporation 520-529-1766
Groundswell 520-222-6722
By the Numbers
The impact of microbusinesses in Arizona local communities
Arizona has 85,491 microbusinesses
employing 155,449 people (average 2.1 employees per business).
Microbusinesses make up 40%
of all businesses in Arizona and employ approximately 5% of the total Arizona workforce.
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
17.3%
Real estate and rental leasing
17.0%
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]