The Arizona Office of Economic Opportunity (OEO), the Arizona state agency committed to strengthening Arizona’s workforce and economy, announced a new opportunity for grant funding through the Arizona Microbusiness Loan Program. The program, launched by Governor Katie Hobbs in August 2024, is already making a positive impact in communities across the state.
Arizona’s small businesses are invaluable in fostering economic growth, community development and job creation, and the Microbusiness Loan Program provides opportunities for Arizona’s smallest businesses – those with five or fewer employees – to receive access to loans from Community Development Financial Institutions (CDFIs) and non-profit community lending partners. In addition, microbusinesses that are issued loans also receive financial education and training to ensure the successful outcome of the loans in growing their businesses.
In the first two rounds of funding, OEO provided state-designated grant funds to six lending partners serving nearly every corner of the state. Since the launch of the program, microbusinesses have been applying directly through CDFI partners selected to serve their communities, including nearly every Arizona county and all 22 federally designated Tribal communities in the state. The Arizona Legislature established the program last year, providing $5,000,000 in loan funding to Arizona-based microbusinesses; each qualifying borrower can receive up to $50,000 in loans by applying through a network of experienced small business lending partner organizations.
OEO opened a six-week Request For Grant Application (RFGA) cycle (closing on December 11, 2024) to select additional lending partners for the program, seeking coverage from community non-profit lenders to serve microbusinesses across Arizona, including Maricopa and Pinal Counties. Interested community lending organizations can learn more about the Microbusiness Loan Program, lending partner criteria and requirements, and submit an application here.
“Since Governor Hobbs publicly launched the Microbusiness Loan Program in August, the response has been tremendous, both from the lending community as well as microbusinesses in cities and towns across the entire state,” said Office of Economic Opportunity Director Carlos Contreras. “In many cases, microbusiness owners have no access to funding to grow their business and facilitate economic development and job creation in their communities. This program provides these entrepreneurs with a means to secure loans that would otherwise be unavailable to them, helping to fulfill their ownership dreams while having a positive impact on their immediate communities.”
Earlier this month, Governor Katie Hobbs visited Earnest House in Tucson, one of the first microbusinesses to receive funding through the program. Founded and directed by Daniel Howe, Earnest House is a transitional housing organization dedicated to providing safe and sober housing for individuals re-entering society, particularly those recovering from substance abuse or exiting the prison system. The funding secured through the Microbusiness Loan Program will help cover expenses related to their moving process and assist in the opening of a new housing facility.
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