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Arizona

Arizona Small Business Loans

Arizona is one of the few states in the country experiencing a continuing growth in population, which means that the state is full of opportunities for small business owners and entrepreneurs. As of 2018, Arizona was home to over half a million registered small businesses, employing almost 1 million workers. As the state’s economy continues to grow, small businesses will likely need additional business financing. Luckily, there are numerous small business loans in Arizona that are worth considering.

Written by Tetiana Sitiugina-Babiuk - Independent writer and content strategist, updated on 9/10/2021

At a glance The average loan amount for small businesses within the state of Arizona is $110,000. Also, there are more than 592,000 small businesses currently registered within the state. Thus, small businesses make up more than 99% of the privatized workforce. They also employ almost 1.6 million people. Amongst the 50 states within the US, Arizona has been ranked as the seventh-best state to own or start a small business, and a great place to apply for loans and grants.

Top Arizona Small Business Loan Options

One of the biggest challenges faced by small business owners is finding the best financial institution to acquire a loan. Luckily, the state of Arizona has a few great options to choose from.

National Bank of Arizona

National Bank of Arizona is a local bank dedicated to providing dependable business financing to Arizona-based businesses. Their professional teams of commercial, business, and corporate bankers are always available to evaluate the financing needs of local entrepreneurs and offer a customized solution based on their unique goals and needs.

As such, National Bank of Arizona offers the following forms of business financing:

  • SBA loans. Small Business Administration loans are an excellent solution for renovating or building new facilities, expanding your business, purchasing real estate, and more. Through the National Bank of Arizona, you can borrow up to $5 million, with terms ranging up to 25 years.
  • Business lines of credit. Business lines of credit can be used for working capital or short-term financial needs. National Bank of Arizona offers lines of credit between $5,000 and $50,000, with terms up to 36 months.
  • Term loans. Term loans can be used for purchase of equipment, vehicles, or machinery and provide fixed-rate financing with predictable monthly payments
  • Other types of loans. National Bank of Arizona also offers real estate financing, equipment financing, invoice factoring, and more.

Arizona Bank & Trust

Powered by Heartland Financial USA, Arizona Bank & Trust provides a variety of tailored financial solutions to local small business owners and entrepreneurs. Whether you need new equipment, more office space, or just a line of credit, consider contacting Arizona Bank & Trust to see what they have to offer.

For example, their long-term SBA loans can vary in value and be used to finance franchising, expand a business, purchase machinery, equipment, or real estate, and more. SBA loans have rates and fees comparable to non-guaranteed loans, but often come with lower down payments. In addition, Arizona Bank & Trust offers business lines of credit, term loans, letters of credit, and more.

Horizon Community Bank

Chartered in 2002, Horizon Community Bank initially opened in Lake Havasu City, Arizona, but quickly expanded throughout Mohave and La Paz Counties. While the Bank is a full-service financial institution, their primary focus is on business and commercial banking.

With Horizon Community Bank, you can apply for a business loan ranging from $100,000 to $3,000,000 and choose from a variety of terms to fit your needs. Among other products, the Bank offers SBA loans, business term loans, commercial real estate loans, business lines of credit, and more.

Southwest Business Financing Corporation

Southwest Business Financing Corporation (SBFC) has been ranked as one of the top SBA lenders in Arizona for over 15 years: since 1981, they have invested over $1.5 billion in small businesses throughout the state.

SBFC provides SBA 504 loans - government-backed loans issued specifically for the purpose of purchasing equipment, real estate, or other fixed assets. These loans are long-term, with a minimal down payment and fixed rate, typically in the range of two points above the 10-year Treasury rate.

In order to qualify for an SBA loan from SBFC, your business must:

  • Be a for-profit business
  • Have a net worth of $15 million or less
  • Have strong credit

Small Business Loan Provider

Types of Financing

Loan Amount

Terms & Rates

National Bank of Arizona

  • SBA loans
  • Business lines of credit
  • Term loans... and more
  • Up to $5 million for SBA loans
  • Between $5,000 and $50,000 for business lines of credit
  • Up to 25 years for SBA loans
  • Up to 36 months for business lines of credit

Arizona Bank & Trust

  • SBA loans
  • Business lines of credit
  • Term loans... and more

Not specified

Not specified

Horizon Community Bank

  • SBA loans
  • Business lines of credit
  • Term loans... and more

Between $100,000 and $3,000,000

Not specified

Southwest Business Financing Corporation

  • SBA loans

Not specified

Fixed rate, typically in the range of two points above the 10-year Treasury rate

Top Online Arizona Small Business Loan Options

In addition to traditional lender options in Arizona, you should consider applying for a small business loan with one of the convenient online lending platforms.

1. Fundbox

Fundbox is an online lender providing valuable financial support to small business owners and entrepreneurs in the form of invoice factoring and short-term lines of credit. Through their platform, one may apply for a loan varying between $1,000 and $100,000, with repayment periods ranging between 12 and 24 weeks. The application process is rather straightforward, and the fund disbursement upon approval is fast.

The great thing about Fundbox loans is that they don’t require any collateral or personal guarantee, and don’t have any hidden fees. However, to qualify for financing from this lender, your business must have been in operation three months or more and have an annual revenue of at least $25,000. Furthermore, your personal credit score should be at least 500.

2. Credibly

Credibly has been offering fast and cheap small business loans to entrepreneurs ever since 2010. With generous repayment terms and lenient eligibility requirements, the variety of Credibly’s financial products and services are worth exploring:

  • Long-term business expansion loans. These long-term loans are issued specifically to aid entrepreneurs in expanding their business. As such, a business plan is required along with the online application. Business expansion loans can be valued between $150,000 and $5,000,000, with 3 to 10 year terms.
  • Working capital loans. These types of loans are intended to assist small business owners in meeting their short-term financial needs. Working capital loan amounts can range up to $400,000, with repayment terms varying between 6 and 18 months.
  • SBA loans. SBA loans often offer more favourable terms, yet require additional documentation to apply. Credibly doesn’t disclose the maximum SBA loan amount, but they specify that the term length for SBA loans can range between 2 and 25 years.
  • Other types of loans. Credibly also provides other types of products, such as merchant cash advances, business lines of credit, equipment financing, and invoice factoring.

3. Fora Financial

Fora Financial is a reliable online lender providing thousands of Arizona small business owners and entrepreneurs with easy access to much-needed financing. Through the platform, businesses operating in a wide range of industries may apply for short term loans or merchant cash advances ranging between $5,000 and $500,000.

Fora Financial is also famous for its quick turnaround times: here, application approval typically takes under 24 hours, while fund disbursement - under 72 hours. To be eligible for a loan, you need to make sure that your business annual revenue is at least $12,000, and you have been in operation for at least 6 months. Additionally, you should not have any unsettled or open bankruptcies.

Additional Arizona Small Business Financial Resources

In the state of Arizona, there’s a program specifically aimed toward granting funding to small businesses Along with the government groups, such as SBIR, STTR, or Visa, private financial institutions have been known to help small businesses get on their feet.

The companies and the government achieve this by offering low interest rates and handing out small or large sums of initial capital. However, the main challenge associated with grants is that you have to meet certain requirements to qualify for it.

Luckily, along with the grants, there are a few other valuable financial resources available for Arizona-based small businesses:

Small Business Innovation Research Program

The Small Business Innovation Research Program has been in operation for the past two decades, providing grants to a diverse portfolio of small businesses and startups working in the technology field.

To meet the grant requirements, a business plan is needed, and you also need to meet certain criteria which assesses your level of disadvantage. In addition, you must have no criminal history.

Arizona Commerce Authority

Arizona Commerce Authority is among the top economic development associations in the state, offering a wide range of business services to new and existing businesses alike. Therefore, should you require access to financial resources, business certification programs, or business counseling, consider contacting Arizona Commerce Authority for assistance.

Arizona Small Business Association

The Arizona Small Business Association (ASBA) aims to advocate for the success of small businesses within the state.  As such, all the business members of ASBA receive invitations to tens of networking events per year and are listed in the common business directory for referrals. 

 

However, keep in mind that membership to the ASBA comes at a fee. There are four different levels of membership with fees ranging from $350 to $1,250 per year.

How to Prepare for an Arizona State Business Loan

In order to qualify for an Arizona small business loan, it is crucial to have a strong application and a solid structure for your business.  Follow these steps to ensure that you maximize your chances of being approved for business financing:

  • Have a business plan. Most lenders will want to see that you have a reasonable plan that will allow you to generate profits and expand your business over time.
  • SWOT analysis. “SWOT” stands for Strengths, Weaknesses, Opportunities, and Threats. Conducting a SWOT analysis is an excellent way to identify and analyze your company’s internal strengths and weaknesses and develop a successful strategy for the future.
  • Find a lender working with young businesses. Consider both conventional lenders, such as banks and credit unions, and non-conventional online options.
  • Have a good credit rating. Good credit rating can’t be built overnight, but you can somewhat improve your credit over time by paying off any existing debts and keeping your balances low at all times.
  • Explore alternative options if you have poor credit rating. If your credit score is still not great, consider looking into other options like crowdfunding or applying for a business credit card. In addition, many online lenders tend to have more lenient requirements as compared to traditional banks.
  • Get correct paperwork in order to qualify for specific financing options. Each lender or grant organization will have their own application requirements. Make sure that you get all the required paperwork in order before applying for a loan or grant.

The Bottom Line

Many people have great, innovative, and creative ideas for businesses, although most don’t have the funds they require to complete their goals. Therefore, individuals need to explore all available funding options when establishing their business.

In the state of Arizona, you may wish to begin by applying for a grant. However, to meet the requirements for a state grant an individual needs to be disadvantaged, or of a minority background, or have a business idea that will largely benefit the state of Arizona. If you don’t meet these criteria there are alternative funding methods that should be explored, such as business credit cards, invoice financing, collateral financing, and personal loans. 

Each loan option is associated with its benefits and risks profile. Additionally, if all the options for a loan or grant are exhausted without the desired result, crowdfunding or a personal online credit card loan should be examined. These are often last resort and have no guaranteed outcome; however, anything is possible with enough creativity, desire, and the correct business plan.