By InBusiness Phoenix
Access to capital ranks as one of the largest barriers facing small business owners. To promote small business stability, growth, and success, especially among entrepreneurs from underserved communities, Governor Hobbs and the Arizona Commerce Authority (ACA) have partnered with community financial institutions and mentors to launch a new suite of small business support programs.
A 2023 report from The Kauffman Foundation found that 83% of entrepreneurs don’t have access to capital from traditional sources. Similarly, roughly half of small business owners cite as barriers “not having enough information on available sources of capital” and “not having enough revenue or assets to qualify for a loan.”
To address these challenges and more, the ACA has launched the Arizona Loan Guarantee Program, which provides guarantees to partnering lenders for up to 50% of principal on loans to eligible businesses. The program helps partnering lenders mitigate risk so they can increase capital available to small businesses located across the state. Arizona is currently partnered with three Community Development Financial Institutions (CDFIs) on the loan guarantee program: Prestamos CDFI, Clearinghouse CDFI and Lendistry CDFI.
