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There are more than 550,000 small business owners in Arizona, from Phoenix to Tucson to Sedona, and they all have one thing in common: they need capital to grow.
Sometimes they have this capital in reserve in their bank accounts. Sometimes they need to find it elsewhere. This is where small business loans can come in handy.
How a Small Business Loan Can Help Your Business in Arizona
Small business loans can be used for so many things. They can provide working capital while you wait for customers to pay their bills. If yours is a seasonal business in Arizona, this money can get you through your busy season.
You can use a business loan to fund marketing, hire employees, or buy equipment. And if business acquisitions are on your list, corporate financing can also help.
The question is, how can small business loans NOT help your business in Arizona?
Types of small business loans to choose from
Business financing comes in many shapes and sizes. Whether you’re looking for a $5,000 microloan or a big $1 million home loan, there are lenders in Arizona who can help.
The United States Small Business Administration guarantees loans through several loan programs, including SBA 7(a) loans, SBA 504 loans, and microloans. These loans have low interest rates and long repayment periods. Learn more at SBA.gov.
Banks, credit unions, and online lenders offer long-term loans with low interest rates to those with excellent credit.
If you don’t have good credit, you may qualify for short term loans. These may have higher interest rates, but be easier to obtain.
Lines of credit
Rather than getting all the money at once, a line of credit lets you borrow what you need on that line and pay it back, then borrow again.
Commercial real estate loans
Just as you would take out a mortgage for a home, you can also take out a commercial mortgage to purchase investment property, retail space, warehouses and offices.
Business credit cards
Having a business credit card allows you to make purchases for your business in stores and online. Get a card with rewards, and it can pay for itself.
Small Business Loans Available in Arizona
Here are some of the lenders who can help you get any type of loan in Arizona.
Newtek offers loans between $1,000 and $15 million, so whatever your financing needs, the lender can help. The loans, with terms ranging from 7 to 25 years, can be used for business acquisition, refinancing or commercial real estate.
Arizona Bank and Trust
Arizona Bank & Trust is an SBA lender and also offers commercial lines of credit, term loans and leasing solutions. Plus, you can get a business credit card, high-yield savings, and cash management services.
Looking for a $1,000 to $150,000 line of credit? Kabbage can help. Its financing solutions are backed by American Express, which means you have access to cash management tools.
Alliance Bank of Arizona
Alliance Bank of Arizona is an SBA lender and offers 504, 7(a), and SBA Express loans at low interest rates. The bank also offers a variety of other business banking services, ranging from checking and savings to business credit cards and term loans.
What it takes to get approved for a small business loan
Each lender has slightly different eligibility criteria for approving a loan application. Typically they want you to have at least two years in business, so startups can have trouble getting loans from banks and the SBA.
You may need to post collateral for a loan, so make sure you have high-value fixed assets you can use. Some lenders, like the SBA or banks, may ask you to provide certain documents like a business plan and/or financial statements and tax returns.
How to choose the right loan for your small business in Arizona
The right loan depends on your business needs. Are you looking for $5,000 to buy equipment or $1 million to buy real estate? How much can you afford to borrow? Remember that the loan amount you agree to borrow must be repaid, so be sure to budget for this monthly repayment cost.
Also think about what you are entitled to. If you have good credit, you have plenty of options at low rates. If your credit is bad, you will have fewer options and you will pay more interest. Is it worth getting the financing your business needs in Arizona?
Small Business Grant Options for Arizona
Small business loans aren’t your only option for getting working capital in Arizona. There are also grant programs that can provide funds that you don’t have to repay.
The EmergeAZ grant is a partnership between the Office of the Governor, invisionAZ, and StartupAZ, and is intended to help startups involved in addressing issues caused by the COVID-19 pandemic. To qualify, your startup must have a product on the market, be in business for at least one year, and have five or more employees.
Nav Small Business Grant
Nav is doing its part to help businesses in Arizona (and those in other states) find the funds they need to grow. Nav’s Small Business Grant provides $10,000 to one lucky business each quarter and $5,000 the second.
In Phoenix, PHXbizGrants is offering grants of up to $15,000 to help micro and small businesses cover business expenses during the pandemic. To qualify, you must have a Phoenix business at least a year old, 25 or fewer employees, and gross sales of $3 million or less. Additionally, your gross sales must have decreased by at least 25% due to COVID-19 after March 1, 2021.
Additional Resources for Arizona Small Businesses
Learn about some of the business resources available to you as an Arizona business.
The Arizona Small Business Development Center has 10 district offices statewide and offers free training, events, and consulting.
The AZSTEP program helps small businesses interested in entering export markets for the first time or expanding into new markets. The program offers compliance training, trade shows, go-to-market initiatives and education.
Arizona Small Business Boot Camp and Collective
Don’t let the term boot camp scare you off. This initiative, set up by the Arizona Commerce Authority and Local First Arizona, offers a series of webinars and resources to help entrepreneurs recover from the pandemic.
With so many financing options and resources available to small businesses, it’s no wonder there are so many great businesses in Arizona. How will you develop yours?
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