It takes money to make money. That’s one of the basic tenets of business financing. Figuring out how to get the money you need to either start a business or take a current business to the next level can be challenging.
The good news is there are a variety of options for getting the small business funding you need if you live in Arizona. Not only are there Arizona small business grants available for business owners, but you can also find small business loans aimed at Arizonans designed to help entrepreneurs move forward.
Finally, there are more general options for business financing, including venture capital and invoice factoring. Small business loans in Arizona can help you grow and expand your business, whether you use a national source or stick close to home.
On this page:
- Arizona Small Business Grants
- Small Business Loans in Arizona
- Small Business Investors in Arizona
- Other Sources of Small Business Financing
- Getting Your Business Ready for Financing
- What Kind of Financing Do You Need?
Arizona Small Business Grants
If you’re looking for free money that you don’t have to repay, Arizona small business grants have you covered. These grants are designed to help businesses learn, become more profitable, and get what they need to take the next step towards success. Here are some of the small business grants available in Arizona.
ASBA Training Grants
- Grant amount: Up to 75% reimbursement to train new hires and up to 50% reimbursement to train existing staff
- Eligibility: Must be a member of the ASBA
- Deadline: Open application
Training staff can get expensive. If you want to reduce your costs, these grants managed through the Arizona Small Business Association can provide you with reimbursement from the state. Call 602.306.4000 for more information about how to participate.
Neighborhood Commercial Rehabilitation (Phoenix)
- Grant amount: $15,000 per suite with a $225,000 maximum request
- Eligibility: Must be located within Redevelopment and Neighborhood Initiative Areas
- Deadline: Open application
If you’re willing to develop projects designed to help revitalize areas, you can answer a request for proposals from the Phoenix city government. If you want information about the open application process, email [email protected].
Small Business Assistance (Phoenix)
- Grant amount: Up to $50,000
- Eligibility: Non- and for-profit corporations that use the grant for job creation or to re-train low-income individuals
- Deadline: Open application
This is an open application that can be completed as needed. If your business provides assistance to other businesses, including training, outreach, and marketing, you can apply for this grant. For more information, call 602.261.8697.
Management Technical Assistance Program
- Grant amount: No dollar amount; free services
- Eligibility: For-profit businesses that will create a job in the next two years or a micro-enterprise whose owner has a low to moderate income.
- Deadline: Open application
If you want free access to an experienced consultant, this grant program can help you make the most of your resources. Call 602.261.8697 for more information on how to apply.
Arizona STEP Program
- Grant amount: Based on services provided to the business
- Eligibility: Must be a small business looking to enter export markets for the first time or expand into new markets
- Deadline: Open application
If you want to export your products, this grant program can help you by providing assessments, marketing help, translation services, and even facilitating participation in trade shows and summits. Contact [email protected] for more information.
Amber Grant for Women
- Grant amount: Up to $27,000
- Eligibility: Be a woman entrepreneur and pay the $15 application fee
- Deadline: End of the month for each $2,000 grant
The Amber Grant is open to women all over the country — including in Arizona. Women can apply for a $2,000 grant by sharing their business purpose. One $2,000 grant is awarded each month of the year. At the end of the year, each of the 12 recipients is eligible for another $25,000 in grant money. You can get more information and apply at AmberGrantsforWomen.com.
Small Business Loans in Arizona
Even if you don’t qualify for Arizona small business grants, it’s still possible to get funding. Small business loans in Arizona are available from banks that offer SBA loans. Here are some of the banks that lend to small businesses.
Alliance Bank of Arizona
You can get access to SBA 504 or 7(a) programs through Alliance Bank of Arizona. Terms and rates depend on your credit situation as well as the program you choose. In general, interest rates at Alliance Bank are very competitive, including below-market rates for SBA loans.
SBA 504 program
Repayment terms of up to 10 years for equipment or 20 years for commercial real estate. Get a loan for as little as 10% down and refinance multiple loans. In general, lenders like to see a credit score of at least 680 to qualify for one of these loans.
SBA 7(a) program
Borrow up to $5 million with this program with a down payment as low as 10%. You can also get a variety of repayment terms, ranging from seven to 25 years, depending on your needs. In general, you should have a credit score of around 640 to qualify for this program.
Commerce Bank of Arizona
In addition to SBA loans, you can get other small business loans in Arizona from Commerce Bank. You may be eligible for a line of credit of up to $500,000 based on your credit worthiness, time in business, and other factors. The Commerce Bank of Arizona will work with you to customize repayment terms as well as work with you on a competitive interest rate based on a local decision-making process.
Mountain America Credit Union
Even though it’s headquartered in Utah, you can get small business loans in Arizona from this lender. Mountain America Credit Union offers a variety of solutions, including business credit cards, SBA loans, a line of credit, and equipment loans. You can borrow more than $50,000 and get a competitive interest rate if you have good credit. Depending on your needs, there are a variety of repayment terms. Plus, because Mountain America is a credit union and so is member-owned, decisions are made locally — and fees may be lower than at other institutions.
Small Business Investors in Arizona
Perhaps, instead of getting Arizona small business grants, you may decide to look for investors. When you work with investors, you may have to give up some of your profits or a measure of control –but this can still be a good way to fund your enterprise.
Angel investors generally inject capital in return for ownership equity or convertible debt, while venture capitalists want an equity stake that can be sold later for massive profit. Angel investors aren’t as concerned with fabulous returns as venture capitalists.
Arris Ventures (Venture)
This venture capital fund focuses on information technology, distance learning, e-commerce, life sciences, and networking. If you fall into those categories, you might be able to get some funding from them.
McKellar and Co. (Angel)
With a fund size of $100 million, this angel investment fund focuses on consumer products, biotech and medical, financial services, and alternative energy sectors.
Solstice Capital (Venture)
With an $85 million fund, this venture capital focuses on companies in sectors that include the environment, information technology, education, and alternative energy.
Thunderbird Angel Network (Angel)
You can apply to attend at one of the Thunderbird Angel Network’s presentations to see if you can qualify for angel funding from this investment network. Various markets are considered and the network focuses on early-stage business.
Other Sources of Small Business Financing
Just because you’re based in Arizona, doesn’t mean you have to confine yourself to local lenders and grant makers. If you can’t get Arizona small business grants, you should consider other sources of funding. If you’re unhappy with the small business loans in Arizona, or unable to qualify, these options may be able to provide you with the funding you need.
Fundbox focuses on invoice factoring. You submit an invoice and Fundbox will advance you 100% of the amount. Additionally, it’s possible to get a business line of credit with Fundbox.
- Loan amount: $1,000 – $100,000
- APR: 16.5% – 76.5%
- Term Length: 12 or 24 weeks
- Fees: Based on length of loan and amount, starting at 4.66% of the draw amount
- Business history: 2+ months of activity
- Annual revenue: $50,000
- FICO score: No minimum
You can access term loans, a line of credit, or use invoice factoring to get the small business financing you need with BlueVine.
- Loan amount: $5,000 – $5 million
- APR: 17.5% – 60.0%
- Term Length: 12, 26, or 52 weeks, depending on the product
- Fees: Based on length of loan and amount, starting at 1.6% for draw fees
- Business history: 3+ months of activity
- Annual revenue: $100,000
- FICO score: 530+ (600+ for term loan or line of credit)
FundingCircle offers P2P business loans for a variety of purposes.
- Loan amount: $55,000 – $500,000
- APR: 4.99% – 27.79%
- Term Length: 6 months – 5 years
- Fees: Based on term length, 0.99% – 6.0% of the loan amount
- Business history: 2+ years
- Annual revenue: No minimum requirement
- FICO score: 620+
Getting Your Business Ready for Financing
If you want to get financing for your business, whether you’re applying for Arizona small business grants, looking for an investor, or hoping for a loan, there are a few things you need to do in order to get ready. Generally speaking, it’s a good idea to have:
- An Employee Identification Number (EIN)
- A business checking account
- A solid track record of business success
- A business plan
- Information about your personal finances, including your credit score
- Business credit
Depending on the type of financing you need, some of these requirements might not apply to you. For example, if you plan to get invoice factoring, if you’ve been in business for at least two months and can show that you have unpaid invoices, you don’t need much else. It’s fairly easy to qualify.
However, if you want a business grant or an infusion of capital from an investor, you need an entire presentation that lays out the financials of your company and includes a plan for future growth. Many business loans also require that you provide personal and business financial and credit information.
>> Read More: Business credit vs personal credit
Before you apply for financing, make sure you understand the criteria used to judge your application. Preparing a business grant application or applying for an SBA loan can take several days — or even weeks — of preparation ahead of time.
What Kind of Financing Do You Need?
The type of business funding you need depends on your current situation and your goals for the business.
If you’re a startup looking for solid financing to get your venture off the ground, you might want to look into venture or angel capital. Small-sized businesses hoping to expand or get a little extra help might benefit more from modest Arizona small business grants.
However, if you’re an established company, business term loans or business lines of credit can make sense. If you need ongoing capital for payroll or for expansion, a line of credit may be a good choice because you can access it as needed. On the other hand, if you need to make a one-off equipment purchase, a secured business loan from a local bank or credit union can provide you with a lower rate and better terms.
Finally, if you need fast cash and don’t have time to go through the loan application process, an alternative lender such as BlueVine or Fundbox that offers invoice financing might help you bridge a current funding gap. These loans can be more expensive but they’re easier to qualify for — even if you haven’t been in business very long. Plus, you can usually see money in your account within one or two business days.
No matter what stage your Arizona business is in, there are funding options available. From Arizona small business grants, to investor capital, to small business loans in Arizona and beyond, it’s possible to find some type of funding to fit your needs. Carefully consider your situation and decide what type of financing is best suited to your business.