Arizona Microbusiness Loan Program Grant Opportunity

Arizona Announces Second Round of Grants for Microbusiness Loan Program

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 through eligible lenders. 

 

$3 million remains available to eligible entities with lending experience, including Community Development Financial Institutions and nonprofit organizations, to facilitate loans to microbusinesses within the state to generate economic development and jobs. Funding to grantees will not exceed $2,000,000 per eligible lending organization.

 

Each grantee will become a lending partner with the state to offer individual loans to eligible microbusiness borrowers with a principal amount of up to $50,000 per loan. Grantees should provide financial education and training to loan recipients, either through the use of internal training services, if available, or through referrals of microbusiness loan recipients to local partner organizations that provide professional financial education.

 

Grantee Eligibility
To receive funding from this Microbusiness Loan program, an eligible entity must satisfy the following criteria: 

  • Applicants must be a Community Development Financial Institution (CDFI) or other nonprofit organization, with at least two years of lending experience.  “Community Development Financial Institution" means an entity that is currently certified pursuant to 12 Code of Federal Regulations 29 section 1805.201.
  • Grantees must demonstrate expertise in microbusiness loan applications and processing, knowledge of evaluating microbusiness creditworthiness, and assessment of whether a proposed microbusiness loan will generate economic development and jobs within this state.
  • Grantees must have an administrative system in place for effective loan monitoring and reporting. 
  • Grantees must comply with Microlending rules and regulations.

 

Application Deadline

All applications are due by 5 p.m., Thursday, June 13, 2024 through the eCivis Grants Portal.


For more information, and to review the Request for Grant Application for the Microbusiness Loan Program, please visit the OEO Funding Opportunities webpage.