Arizona small business grants and loans for 2025

What to consider before applying

If you’re beginning to explore business funding and support in Arizona, here’s what to consider before you apply.

How hard is it to get a business loan in Arizona?

Qualifying for a business loan in Arizona depends on a few key factors, such as how much funding you need, how long you've been in business, your credit score, and the type of lender. Traditional lenders like banks often require strong credit, at least two years in business, and detailed financials. If you're a newer business, consider SBA loans available through local lenders such as Prestamos CDFI.

Are there free funding programs for Arizona small businesses?

Grants and similar programs offer money you don't have to pay back in return for effort based on merit and eligibility. For example, the AZSTEP Grant helps small businesses cover export-related costs like marketing and international trade shows. Each program has different eligibility requirements, such as industry type, revenue size, or location, so it’s worth checking directly with your city’s economic development office or the Arizona Commerce Authority.

Does Arizona have a debt relief program?

Arizona doesn't operate a single, statewide debt relief program for small businesses, but there are reputable organizations and financial resources that can help, like Growth Partners Arizona and the Arizona Small Business Development Center Network (AZSBDC). Always avoid debt relief scams and look for nonprofit or government-backed organizations. When in doubt, consult your bank or local chamber of commerce for verified referrals.

Arizona small business grants

Grants can give your business a much-needed boost without the stress of repayment. They’re offered by cities, counties, nonprofits, and state programs, and they’re designed to support the people and industries that keep Arizona growing. Here are some small business grants available in the state:

1. Arizona Commerce Authority

The Arizona Commerce Authority (ACA) is one of the best places to start. It offers grant programs and business resources designed to fuel growth in areas like advanced manufacturing, tech, and workforce development. Programs like the Arizona Innovation Challenge reward high-potential startups with funding and expert guidance to help them scale.

2. City of Phoenix small business grants

Phoenix offers local grant programs to support small businesses across the city, especially in underserved communities. These grants may help cover rent, payroll, marketing, or other daily expenses. Programs change throughout the year, so it’s worth checking in with the city’s business resources page regularly.

3. Arizona Advanced Manufacturing Facilities Grant

The Arizona Advanced Manufacturing Facilities Grant is built for businesses in the semiconductor or hard materials space. If your business qualifies, you could get up to $75,000 in matching funds—plus access to discounted lab space and tools at Arizona State University’s Core Research Facilities.

4. Amber Grants for Women

This grant is all about supporting female entrepreneurs. Each month, the Amber Grant awards between $10,000 and $25,000 to women-owned businesses in Arizona. There are also mini-grants of up to $2,000 available.

5. Specialty Crop Block Grant Program (SCBGP)

If your business is in agriculture and focused on crops like fruits, vegetables, tree nuts, or nursery products, the SCBGP might be a perfect fit. This program funds projects that improve the competitiveness of specialty crops in Arizona. Grants are awarded through the Arizona Department of Agriculture and usually support collaborations between small producers, nonprofits, and community organizations.

6. AHCCCS grants

The Arizona Health Care Cost Containment System (AHCCCS) offers grant opportunities to support programs that improve health outcomes across the state. These grants often focus on behavioral health, substance use treatment, healthcare access, and services for underserved communities.

Eligibility requirements for grants in Arizona

Grant programs in Arizona each come with their own rules, but most look for a few key things before awarding funds. Here are the most common eligibility factors to keep in mind:

• Business size: Many grants are designed for small businesses, which usually means fewer employees and lower annual revenue.
• Location: Some programs focus on certain areas in Arizona, especially rural, tribal, or underserved communities.
• Financial need: You may need to show that your business has faced financial hardship or could benefit significantly from extra funding.
• Industry type: Arizona often prioritizes industries like advanced manufacturing, agriculture, clean energy, health care, and tech innovation.
• Business history: Some grants require your business to be up and running for a certain amount of time—usually at least six months to two years.
• Community impact: Programs typically favor businesses that support job creation, sustainability, or services that benefit local communities.
• Matching funds: A few grants expect you to pitch in a portion of the project cost to show commitment and share the risk.
• Ownership status: Some funding is reserved—or prioritized—for businesses owned by women, veterans, minorities, or other historically underrepresented groups.
• Documentation: Be ready to submit paperwork like your business plan, financial statements, proof of Arizona residency, and any necessary licenses or registrations.

Federal small business grants

Federal grants, such as the following, are also available and may be a potential funding source for your business.

1.Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs

The SBIR and STTR programs support small businesses engaged in research and technological innovation. These grants provide funding to help businesses develop and commercialize new technologies in industries such as healthcare, defense, and energy. Eligible businesses must meet federal guidelines and work with government agencies like the National Science Foundation or the Department of Defense.

2. USDA Rural Business Development Grants

The U.S. Department of Agriculture (USDA) provides Rural Business Development Grants (RBDG) to help small businesses in rural communities grow and thrive. These funds support projects such as training, technical assistance, and infrastructure improvements. To qualify, businesses must operate in areas with a population of fewer than 50,000 people.

3. Minority Business Development Agency (MBDA) Grants

The MBDA, a division of the U.S. Department of Commerce, offers grants to support minority-owned businesses. These grants fund programs providing business training, access to capital, and expansion opportunities. MBDA grants are typically awarded to nonprofit organizations and business development centers that assist minority entrepreneurs.

4. Economic Injury Disaster Loans and Grants

During economic downturns and natural disasters, federal grants and low-interest loans become available through agencies like the SBA and the Federal Emergency Management Agency (FEMA). 

Additional grant resources for Arizona businesses

Beyond state-run programs and federal funding, Arizona small business owners can tap into other valuable grant opportunities. Local governments, foundations, and even big-name companies often offer funding to support entrepreneurship across the state. Here are a few places to look:

• City and county grant programs: Many Arizona cities, like Phoenix, Tucson, and Mesa, offer small business grants for needs like storefront improvements, job creation, or neighborhood revitalization. Check your local government or economic development office for open programs.
• Private foundation grants: Organizations like the Arizona Community Foundation provide grants that support economic development, indigenous-owned businesses, and rural entrepreneurship.
• Corporate grants: Companies sometimes fund small business grant programs—especially those focused on innovation, minority-owned businesses, or local impact. These opportunities may not always be well-publicized, so it’s worth signing up for email alerts or checking company websites.

How to get a business grant in Arizona: Application process

Whether you're applying for a grant from the state of Arizona, a federal agency, a local government, or a private organization, the application process requires preparation, accuracy, and the right documentation. Here's a step-by-step guide to help you through the grant process.

Applying for Arizona-sponsored grants 

Follow the steps below to help you apply for small business grants in Arizona.

1. Explore Arizona grant opportunities

Visit the Arizona Commerce Authority website to see what’s currently available. You’ll find programs for small businesses, startups, rural businesses, and more.

2. Register with the Arizona Procurement Portal (APP)

For many state grants, you’ll need to sign up with the Arizona Procurement Portal. This gives you access to grant applications and updates on new funding opportunities.

3. Gather required documentation

Prepare your business license, financial records, tax ID, ownership structure, and any additional documents listed in the program’s guidelines.

4. Review the Notice of Funding Opportunity (NOFO)

Each grant will have specific rules, deadlines, and criteria. Look for the NOFO (Notice of Funding Opportunity), which explains who’s eligible and what you’ll need to submit.

5. Complete and submit your application

Once you’re ready, fill out the application and submit it through the portal or website listed. Be sure to follow formatting instructions and double-check for any missing info.

6. Participate in available trainings or webinars

The ACA and other agencies occasionally host webinars to guide applicants through the grant process. Attending can help you avoid mistakes and improve your chances of success.

Applying for federal grants

1. Identify federal funding opportunities

Search for available grants on Grants.gov and specific federal agency websites. Review eligibility criteria, funding priorities, and application deadlines.

2. Obtain a Unique Entity Identifier (UEI)

Register in the System for Award Management (SAM.gov) to obtain a UEI, which is required for federal grants. Maintain an active SAM.gov registration to stay eligible.

3. Review the Funding Opportunity Announcement (FOA)

Carefully read the FOA to understand grant objectives, requirements, and evaluation criteria. Note key deadlines and required documents.

4. Prepare the application package

Write a detailed project narrative explaining your goals, impact, and execution plan. Develop a comprehensive budget and justification for requested funding. Be sure to also gather supporting documents, such as letters of support, resumes, and compliance certifications.

5. Submit your application

Use the designated platform to submit your application. For federal grants, this is typically Grants.gov. Ensure all components are properly formatted and submitted before the deadline.

6. Follow up and await feedback

Monitor your application status through the submission portal. Respond promptly to any requests for additional information or clarifications.

Applying for local, private, or corporate grants

1. Find grant opportunities

Check local government websites, private foundations, and corporate grant programs for available funding. Review eligibility and application requirements.

2. Prepare required documents 

Gather business details, financial statements, and a strong proposal outlining your project, goals, and impact.

3. Submit your application 

Follow the specific submission process for each grant, ensuring all required documents are included.

4. Monitor and follow up 

Track your application status and respond to any follow-up requests for additional information.

Are there repayment requirements for small business grants in Arizona?

When you receive a grant in Arizona, you’ll usually be required to sign a funding agreement that outlines exactly how the money should be used. If you don’t follow the rules, like using the funds for something outside the approved scope or failing to provide proper documentation, you could be required to return the money. That’s why it’s important to keep detailed records and make sure you're meeting all the terms of the grant.

Arizona small business loans

Arizona offers several business loan programs to help entrepreneurs secure funding for startup costs, day-to-day operations, and business growth. Below are some key loan options available to consider:

1. Small Business Diversity Banking Program

Offered by the National Bank of Arizona, this program is designed to expand funding opportunities for minority-owned businesses. To qualify, your business must be based in Arizona, have more than 50% minority ownership or control, and bring in less than $10 million in annual revenue.

2. Arizona Microbusiness Loan Program

Arizona Microbusiness Loan Program is aimed at the smallest businesses in the state. Backed by a $5 million investment, it offers loans ranging from $2,000 to $50,000, distributed through trusted nonprofit lenders and Community Development Financial Institutions (CDFIs).

3. Arizona Loan Guarantee Program (AZLGP)

If you’ve ever struggled to get approved for a business loan, the AZLGP might help. The state of Arizona partners with lenders and backs up to 50% of the loan amount, reducing the lender’s risk. That means you’re more likely to get approved, even if you’re a newer or smaller business.

4. SBA 7(a) Loan Program

In addition to state-sponsored loan programs, the SBA 7(a) Loan Program is a federally backed option that offers Arizona small businesses funding for working capital, equipment, real estate, and debt refinancing. Loans are issued through banks, credit unions, and alternative lenders, with the U.S. Small Business Administration guaranteeing a portion of the loan to reduce lender risk. Eligibility typically requires strong credit, sufficient revenue, and a solid business plan.

Arizona small business loan eligibility

To qualify for most small business loan programs in Arizona, your business will need to meet a few basic requirements. While each program may have its own specific criteria, here are the common standards:

• Business size: You’ll typically need to qualify as a small business under state or federal guidelines—often meaning fewer than 500 employees, though some programs may allow up to 750.
• Location: Your business must be based in Arizona or have significant operations within the state.
• Good standing: You should be in good standing with the Arizona Corporation Commission (or other relevant agencies), with no recent bankruptcies, tax issues, or legal judgments

Your business must also meet any other requirements specified by the lender. 

Do you have to pay back loans in Arizona as a small business?

Yes, if you take out a loan as a small business in Arizona, you’re expected to pay it back—usually with interest. Repayment terms can vary depending on the lender and the type of loan you choose. Be sure to consider factors like interest rates, repayment length, fees, and penalties for early or missed payments before you commit. Consult a financial advisor or accountant who can help you choose the best loan for your business and manage repayment effectively.

How to get a business loan in Arizona: application process

Small business loans in Arizona are available from both private lenders and government-backed programs. To improve your chances of approval, follow these key steps:

1. Assess your financing needs 

Determine how much funding you need, what it will be used for, and which loan type best suits your business.

2. Check your credit and financials

Review your business and personal credit scores, gather financial statements, and ensure your revenue supports loan repayment.

3. Prepare a business plan 

Most lenders require a detailed business plan outlining your operations, revenue projections, and repayment strategy.

4. Research lenders 

Compare options from banks, credit unions, online lenders, and state-backed programs to find the best terms and eligibility requirements.

5. Gather required documents

This typically includes tax returns, financial statements, legal business documents, and collateral details if needed.

6. Submit your application

Follow the lender’s specific process, whether online or in person, and ensure all required documents are included.

7. Await approval and funding 

Lenders review your application, conduct underwriting, and may request additional details before issuing funds.

Arizona small business funding resources

Whether you’re just getting your business off the ground or looking to grow, Arizona has a variety of programs and organizations that can help you find funding, build skills, and connect with the right people. Here are a few great resources to know about:

Arizona Commerce Authority (ACA)

The Arizona Commerce Authority is a go-to resource for small businesses in the state. They offer grant and loan programs, help with navigating regulations, and provide tools for everything from writing a business plan to expanding your workforce.

We Rise 

Run by Local First Arizona, We Rise is a program that focuses on supporting Black entrepreneurs. The program offers a six-month business accelerator that covers various aspects of entrepreneurship, including business plan development, financing, and networking.

Arizona Small Business Development Centers (AZSBDC)

The AZSBDC Network offers free, confidential, one-on-one business advising and training through centers located throughout the state. Services include help with business plans, marketing strategies, funding readiness, and financial analysis.

Other ways to fund your small business in Arizona

Grants and loans are common funding options for businesses, but they aren’t the only ways to secure financial support. Arizona small businesses can explore a variety of alternative funding methods to fuel growth and operations. Here’s a look at some of the most popular options:

Alternative loans

Non-traditional financing options such as online lenders, peer-to-peer lending, or merchant cash advances, often with more flexible requirements than bank loans.

Angel investors

Established entrepreneurs (angel investors) who invest their personal money into startups, often at an early stage, in exchange for equity.

Bootstrapping 

Using personal savings and revenues to fund business operations without external financing.

Contests

Competitions where businesses pitch ideas to win funding or resources.

Corporate programs

Initiatives by large companies offering funding, mentorship, or resources to small businesses.

Crowdfunding 

Raising small amounts of money from a large number of people, typically via online platforms.

Friends and family 

Obtaining funds from personal networks to support business ventures.

Incubators 

Organizations that support startups with resources, mentorship, and sometimes funding.

Microloans

Small, short-term loans from nonprofit lenders, government programs, or alternative lenders, often designed for startups and businesses that may not qualify for traditional bank loans.

Product presales

Selling products before they are produced to generate upfront capital.

Purchase order financing

Obtaining funding based on purchase orders to pay suppliers and fulfill customer orders.

Vendor financing

Suppliers provide goods or services with deferred payment terms to support business cash flow.

Venture capitalists 

Professional firms that invest in startups with high growth potential in exchange for equity.

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