Where to Apply for Business Loans in Arizona

by Kieran Daly
September 26, 2023
Where to Apply for Business Loans in Arizona

With its low tax rates, great weather, and growing economy, Arizona is becoming a popular place to live and start a small business. In fact, there are over 600,000 small businesses in the state, employing about 42% of Arizona employees. 

Starting and growing a small business in Arizona can be an exciting endeavor, but it often requires financial support to succeed. Fortunately, the Grand Canyon state offers a variety of lenders, loan programs, and resources to help businesses get the capital they need. 

In this article, we will cover the financing options available for small business owners, eligibility requirements, and practical advice on how to secure business loans in Arizona.

Where to Get Business Loans in Arizona

If you want to get a small business loan in Arizona, it's essential to know your financing options. Here are some key types of lenders you can consider: 

  • Traditional banks: You can get several types of business loans at national and local banks. These can include standard loans, lines of credit, or credit cards. Traditional lenders will generally look for a superb business plan and excellent credit when determining whether to approve your application.

  • Credit unions: Arizona has numerous credit unions that provide business loans with competitive rates and flexible terms. However, like traditional banks, you will need to provide a lot of documentation and have good credit.

  • Community development financial institutions (CDFIs): CDFIs offer loans specifically designed to support underserved communities and businesses. These loans can be easier to apply for, but you’ll need to meet certain eligibility requirements.

  • Online lenders: Online lending platforms provide alternative financing options, including short-term loans, working capital advances, and business lines of credit. They often have quicker approval processes.

  • SBA-approved lenders: If you're considering an SBA loan, you can work with SBA-approved lenders in Arizona. While the application process can be lengthy, SBA loans often have competitive loan terms. 

Specific Loan Programs for Arizona Businesses

There are several loan programs in Arizona tailored to different business needs. Here are some notable Arizona small business loan options. 

Small Business Administration (SBA) Loans 

The U.S. Small Business Administration provides several loan programs, including the SBA 7(a) loan program, the SBA 504 loan program, and SBA Express loans. These SBA loan programs typically have favorable repayment terms and low interest rates, making them a great choice for small businesses. 

However, it can take a while to get approved for a loan, and there are restrictions on what borrowers can use the money for. 

PPEP Microbusiness and Housing Development Corporation (PMHDC)

PMHDC is an economic development agency that helps increase capital offerings to companies based in the Phoenix and Tucson areas, with a special emphasis on rural Arizona. 

It offers small business loans of up to $250,000 as well as microloans of up to $50,000. To be eligible to apply, you have to have been denied a loan from a commercial bank or credit union. Plus, your business needs to be licensed and in good standing with the State of Arizona Corporation Commission. 

You’ll also need to provide: 

  • A business plan

  • Two forms of identification

  • Two years of balance sheets

  • Two years of profit and loss statements

Prestamos CDFI

Prestamos is a community development financial institution that is focused on promoting community revitalization through increasing access to capital. It provides coaching programs as well as lending programs for Arizona small businesses. 

You can apply for up to $1 million in funding. The money can be used for a variety of expenses, including inventory and supplies, real estate, furniture, machinery, and refinancing. However, you’ll need to provide collateral and have been in business for two years to apply.  

LISC Phoenix

LISC is a national organization focused on helping communities. The Phoenix chapter offers a range of grants and loans for affordable housing developers, small businesses, and nonprofits. 

Some of the available business loans for Arizona include commercial real estate loans of up to $5 million, Kiva crowdfunding loans of up to $10,000, and economic development loans of up to $500,000.

Verde Valley Regional Economic Organization

For businesses located in Northern Arizona, the Verde Valley Regional Economic Organization offers a revolving loan program. Loans are for a minimum of $25,000 to help businesses that can’t get conventional funding. The money can be used for various purposes, including inventory or equipment purchases, working capital, or renovations. 

6 Practical Tips for Securing Business Loans in Arizona

If you are looking to secure funding for your Arizona business, it’s best to have a solid plan in place before you apply. Here are some tips to make your loan application stand out. 

1. Prepare a Solid Business Plan

Most lenders will want to see a business plan when you apply for a loan. Make sure it's well-researched, detailed, and demonstrates your business's potential. You should include a description of your company as well as market analysis, your marketing and sales plan, and your funding request. 

Be sure to detail how the funding will help your business and/or the community. For example, will the funding allow you to create jobs?

2. Build and Maintain Good Credit

Having good credit will increase your chances of getting a loan with decent terms and a low interest rate. Work on improving your credit score (business and personal) by paying your bills on time, reducing debt, and managing your finances responsibly. While having good credit won’t guarantee that you’ll receive a loan, it certainly will help. 

3. Explore Various Options

Don't limit yourself to one lender or loan program. Shop around and compare terms and rates to find the best fit for your business. You can also consider multiple loan options, grants, or alternative funding to fulfill your financing needs. 

4. Network

Attend business events, join local chambers of commerce, and connect with other entrepreneurs. Networking can provide valuable insights and potential loan opportunities. It’s also a good chance to find out about the latest trends in your industry and could lead to partnerships with other businesses. 

5. Be Prepared for Due Diligence

Lenders will conduct due diligence on your business and financials. Be transparent and organized when providing requested documentation. Make sure to keep copies of everything. You’ll likely need to provide your tax returns, cash flow statements, and bank account information to get a loan. 

6. Start Early

Securing financing can take time, so start the loan process well in advance of when you'll need the funds. Planning ahead can reduce stress and increase your chances of success. 

Depending on the loan amount you ask for, you may need to apply for loans at several different places. It’s not uncommon for small businesses to be rejected by more traditional lenders, so take that into account when preparing your loan applications.    

Find the Business Financing You Need in Arizona 

Arizona offers a range of financing options and resources to support businesses of all sizes and stages. By understanding the available lenders, loan programs, and eligibility requirements, you can navigate the process of securing a business loan effectively and propel your business toward success in the Grand Canyon State.

If you are looking for small business financing, loans aren’t your only option. Consider applying for a working capital advance or business line of credit instead. 

With Backd’s working capital advance, you can get up to $2 million in funding with flexible loan terms of up to 16 months. If you need access to revolving funds that you can draw from whenever you need it, Backd’s business line of credit provides up to $750,000 in funding. 

Apply today, and find out if you qualify in just 24 hours.

What would you do with the right amount of capital?

Working Capital Advance

Easy payment structures offer amounts with fast turnaround, Simple and easy process to access working capital.

  • Flexible - no collateral required
  • $10K - $2M
  • Terms up to 16 months
  • Automatic daily or weekly, or semi-monthly payments

Business Line of Credit

Get instant access to revolving credit with unlimited terms, and the best rates for your business.

  • Draw funds anytime
  • $10K - $750K
  • Unlimited terms, incredible rates
  • Soft credit pull that doesn't affect your credit score