Top 5 Small Business Grants Arizona This Year

Arizona has about 640,000 small business owners who can apply for small business grants. Submitting an application and competing for Arizona small business grants can help you grow your small or medium-sized enterprise in the Grand Canyon State.

Arizona’s economy has a gross domestic product of $458.9 billion as of 2022. That’s the 18th largest GDP in the United States out of the 50 states and the District of Columbia. Small businesses contribute to the nation’s economy.

Small and medium-sized firms exported about $6.1 billion worth of goods from Arizona in 2021, which ranks 19th in the nation out of the 50 states and Washington, D.C., according to the most recent U.S. Census Bureau export data.

Below Today Africa highlight some of the top small business grants Arizona that you can explore.

Overview of the State of Arizona

The State of Arizona offers a diverse range of funding options geared towards fostering the growth of small businesses. Entities such as the Arizona Commerce Authority actively engage in extending grants designed to bolster innovative, technology-driven enterprises. For example, they provide the Federal and State Technology (FAST) grant to support small business owners, boosting their competitive edge on a national scale.

Local initiatives, like Local First Arizona, contribute substantially to the expansion of statewide economic development through grant programs. They encourage entrepreneurs to seek funding opportunities that align with their specific needs, optimizing chances for successful business growth.

The Maricopa Grants program, another significant contributor, offers reimbursement-based financial support for losses incurred by small businesses, reflecting Maricopa County’s commitment to sustaining the local business community.

Within the funding ecosystem, one can also observe a trend towards encouraging sustainable and innovative business operations. Thriving in the Future: 2024 Business Trends Shaping Arizona’s Landscape outlines the dynamic evolution of the Arizona business topography, indicating a drive towards integrating sustainability and innovation into the mainstream business models.

Through these programs, the State of Arizona solidifies its reputation as a hub for entrepreneurial activity, offering comprehensive support structures to maintain robust business health and ensuring small business owners have access to crucial capital.

Eligibility for Funding Programs in Arizona

When considering funding options in Arizona, a broad spectrum of eligibility criteria applies to small businesses, partnerships, small business owners, and nonprofits. These criteria often include the nature of the business, the number of employees, and financial metrics. Documentation of good standing, compliance with state regulations, and evidence of a sound business plan are common requisites for application.

For Small Businesses and Owners:

• The applicant must be a legally recognized small business entity in Arizona.
• They may be required to demonstrate financial need or growth potential.
• Credit history and previous financial statements can play a crucial role.

For Partnerships:

• All partners should be in agreement and sign necessary application documentation.
• The business must adhere to Arizona’s legal structure for partnerships.

For Nonprofits:

• Must have a valid 501(c)(3) status or equivalent.
• Should serve a public or community need as part of their mission.

Entities must be wary of the specific program’s mandate — some focus on innovation and technology development, while others may be oriented towards community service or economic empowerment.

It is pivotal for applicants to visit official funding sources, such as grants from the Arizona Business Know How, to understand their unique eligibility conditions fully. For instance, Local First Arizona offers insights into programs that cater to for-profit and nonprofit organizations alike, including Maricopa Grants specifying assistance for small and micro businesses with fewer than 50 employees as of March 1, 2020.

Arizona Small Business Grants

If you’re looking for small business grants in Arizona, here are some potential options to consider:

1. Arizona advanced manufacturing facilities grant

• Program description: This grant can help you cover some of the costs of using the Arizona State University Core Research Facilities.
• Incentive: Eligible companies can receive matching grants of up to $50K providing discounted access to ASU’s Core Research Facilities.
• General requirements: Here are some of the general requirements for this grant:
  • Be a small business based in Arizona or relocating to the Grand Canyon State
  • Be in good standing with the Arizona Corporation Commission and other regulatory bodies
  • Moving toward the commercialization of innovative technology or a scientific solution to a marketplace issue
  • ASU Core Facilities research aligns with the semiconductor and hard materials space
  • Be an eligible business structure, such as a corporation, limited liability company, or partnership
  • Sole proprietorships are not eligible
  • Have at least two but no more than 29 full-time employees
  • Companies may not have more than $10 million in net assets, which does not include capital from investors
• How to apply: Contact ASU’s Core Research Facilities before submitting any Arizona Advanced Manufacturing Facilities Grant applications.

2. Arizona state trade expansion program (AZSTEP)

• Program description: The Arizona Commerce Authority offers STEP grants that can help you export your goods and services from the Grand Canyon State to foreign markets.
• Incentive: Receive AZSTEP assistance to participate in international trade shows and expos. AZSTEP can help you export your goods and services to Mexico and beyond.
• General requirements: Arizona small businesses seeking to enter export markets for the first time or expand into new markets may be eligible for AZSTEP assistance.
• How to apply: Contact the Arizona Commerce Authority if you’re interested in participating in AZSTEP.

3. City of Mesa business export assistance program (BEAP)

• Program description: This program can provide eligible small and medium-sized businesses in Mesa with financial assistance to attend training seminars, trade shows, and sales missions.
• Incentive: Qualified Mesa companies can receive up to 50% reimbursement for eligible expenses associated with trade show participation and export training seminars.
• General requirements: Here are some of the general requirements for this reimbursement program:
  • Be a company headquartered in Mesa, Arizona
  • Submit an application at least 30 days prior to the start of your reimbursable activity
  • Submit proof of seminar completion, trade show attendance, or any other documentation after completing the approved activity
  • Reimbursement is only allowed for preapproved items, including registration and service fees 
  • Reimbursement for travel or other incidental expenses is not allowed
• How to apply: Contact the City of Mesa’s Office of Economic Development if you wish to apply.

4. Phoenix flash grants program

• Program description: Phoenix Flash Grants provide funding to local artists, art collectives, and organizations as they expand their practices and programs in underinvested areas of Arizona’s capital city.
• Incentive: Receive merit-based awards between $1,000 and $3,500 supporting an art-based activity, such as festivals, exhibitions, performances, or educational art programs.
• General requirements: Here are some of the general requirements for this grant:
  • Be based in the City of Phoenix or Maricopa County 
  • Produce an in-person cultural festival in Phoenix serving mainly Phoenix residents​
  • Have a connection or relationship to the area where the project is proposed to take place
  • Be one of the following applicant types:
    • 501(c)3 organization
    • Arts and culture LLC with a prior income below $250K
    • Arts collective
    • Individual artist or culture worker
    • K–12 school
    • Youth group
• How to apply: You can submit your Phoenix Flash Grants application through the city’s online portal.

5. Town of Pinetop-lakeside façade grant program

• Program description: This matching grants program provides funding to commercial property owners who complete façade improvements on buildings in the Town of Pinetop-Lakeside.
• Incentive: Be reimbursed up to $2,500 for implementing eligible façade improvements, such as landscaping or visual enhancements to a commercial property.
• General requirements: Here are some of the general requirements for this grant:
  • Be a local service business or commercial property owner in the Town of Pinetop-Lakeside
  • Propose a façade improvement project that complies with the town’s building codes, sign regulations, zoning ordinances, and any other regulations
  • Meet with a member of the town’s Community Development Department to discuss the project before formally applying for the grant
• How to apply: You can request the Façade Grant Program application at Town Hall or download a copy from the Town of Pinetop-Lakeside’s website. Complete and submit your applications to the Community Development Department.

Grants for Small Business in Arizona

In Arizona, small businesses have several grant opportunities designed to support innovation, technology development, and economic growth. Both federal and state entities offer funding programs, while local grants aim to meet the unique needs of the community.

Federal and State Grant Opportunities

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are federal funding mechanisms that small businesses engaged in research and development (R&D) can tap into. The Arizona Commerce Authority often facilitates access to these grants and provides resources to help businesses apply.

Local programs supported by the Arizona Commerce Authority include the Federal and State Technology (FAST) Grant. This grant aims to advance innovative, technology-driven small businesses with the potential for commercialization of their products or services.

Local Grants and Funding Options

The Arizona Community Foundation distributes various grants to support local small businesses, focusing on different sectors and needs within the state. Among the opportunities available, small businesses can find grants designed to foster job creation, support employee retention, and aid in hiring.

In cities like Phoenix, small business owners can seek Micro and Small Business Grants to assist with economic hardship or expansion efforts. Eligible businesses, particularly those in areas with lower median incomes or higher poverty rates, may receive additional support.

Business Development and Growth Resources in Arizona

Arizona offers a robust selection of support structures for small businesses focusing on development and growth. These resources are vital for entrepreneurs looking to maximize their business potential, expand their operations, and drive job creation.

Counseling and Technical Assistance

Small businesses can benefit from personalized counseling services and technical assistance to overcome challenges and stimulate growth. The Arizona Small Business Association is integral to providing such support, ensuring that businesses get the tailored help they need. Additionally, the Arizona Green Business Program offers grants that not only aid in business development but also encourage eco-friendly practices.

Education and Training

For entrepreneurs seeking to enhance their expertise, various education and training programs are available. State initiatives, such as through the Arizona Commerce Authority, provide workshops and seminars on strategic planning, marketing, and finance—all aimed at fostering business success stories.

Tools for Expansion and Job Creation

To facilitate expansion and job creation, Arizona equips businesses with a multitude of tools. From financing options to competitive grant programs, businesses have access to the resources needed for scaling up. One such example is the USDA Rural Business Development Grants that support projects in rural areas driving economic growth. Another pivotal resource is the Arizona Economic Resource Center, which assists in securing grants to elevate local businesses and communities.

Support for Rural and Underserved Communities in Arizona

In Arizona, rural communities often face unique economic challenges that necessitate specialized funding programs. Small businesses in these areas can explore the Rural Business Development Grants program, which presents two grant types: Opportunity and Enterprise. Opportunity type grants cater to a myriad of community needs with a funding limitation of up to 10 percent of total annual funds. On the other hand, Enterprise type grants are dedicated to projects that will benefit small and emerging businesses within the specified rural locales.

Furthermore, the Arizona State Director of USDA Rural Development has announced substantial investments totaling $117.5 million. These funds are aimed at catalyzing job growth, prospering clean energy initiatives, expanding high-speed internet access, and promoting economic development in underserved regions. As part of this investment, support for rural Arizona communities is a cornerstone in driving forward positive change.

Businesses and entrepreneurs in these regions also have the opportunity to leverage programs like the Rural Microentrepreneur Assistance Program. This program provides grants for technical assistance and establishes a Rural Microloan Revolving Fund, underscoring commitments to foster small business growth and sustainability in rural Arizona.

Who Is Eligible for Small Business Grants in Arizona?

Local business owners or operators of an enterprise with fewer than 500 employees may be eligible for small business grants in Arizona.The U.S. Small Business Administration’s Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. A small business, including individuals with freelancing business ideas, may be eligible for small business grants.

What Industries Does Arizona Support With Grants?

Arizona offers a variety of grants supporting the following industries:

• Advanced manufacturing
• Aerospace
• Information technology
• Medical technology
• Performing arts
• Renewable energy
• Restaurants and other eating places
• Retail trade (store and nonstore retailers)
• Semiconductor

Arizona Resources for SMB Owners Looking for Funding

Here are some resources for small and medium-sized businesses looking for funding in the Grand Canyon State:

Arizona Small Business Development Center (SBDC)

The Arizona SBDC is a statewide program that can provide Arizona’s small business owners with the following services:

• Confidential business counseling at no cost
• Market research
• Workshops and training courses

SBA District Office in Arizona

The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. The SBA’s Arizona District Office serves the entire Grand Canyon State with a main office in Phoenix plus satellite offices in Show Low and Tucson.

Alternative Funding Sources for Small Business Grants Arizona

Here are some alternative funding sources for small businesses in Arizona:

Arizona State Small Business Credit Initiative (SSBCI)

Arizona’s SSBCI is a federally funded program for small business owners in the Grand Canyon State. Federal law — the American Rescue Plan Act of 2021 — allocates more than $111 million to Arizona’s State Small Business Credit Initiative program.Here’s how Arizona plans to use the SSBCI funding:

• Arizona Multi-Fund Venture Program — $50 million. This program will help eligible startups access venture capital.
• Arizona Venture Co-Invest Program — $37 million. This program will provide eligible startups and underrepresented businesses in Arizona with direct SSBCI equity capital alongside matching private sector investment.
• Arizona Loan Guarantee Program — $24.03 million. This program makes it easier for Arizona startups to qualify for small business loans by providing guarantees of up to 50% of unpaid principal on enrolled loans.

Arizona Microloan Lenders

Community-based nonprofits may offer microloans of up to $50,000 to small business owners in Arizona, including microloans for women-owned small businesses. In general, microloans can range from $500 to $50K and may be available to startups.

Arizona SMB Loans from Private Lenders

Banks, credit unions, and private lenders may offer different types of small business loans to Arizona business owners. Here are some of the funding products you may consider depending on your needs:

• Commercial real estate loans
• Equipment financing
• Small business loans for startups
• Working capital lines of credit

Frequently Asked Questions

This section addresses common inquiries regarding small business funding opportunities in Arizona, aiming to provide entrepreneurs with essential information to support their business ventures.

What types of small business grants are available in Arizona for startups?

Arizona provides a variety of small business grants for startups, including those focusing on innovation, technology, and economic development. Startups can find grants that cater to specific industries or that prioritize businesses demonstrating potential for growth and job creation.

How can individuals access small business funding programs in Arizona?

To access small business funding programs in Arizona, individuals must typically apply through the designated program’s official channels, which may include online applications, submission of business plans, and adherence to specific eligibility criteria.

Are there any free funding programs for small businesses in Arizona?

Yes, there are free funding programs available for small businesses in Arizona, such as the Maricopa County Small Business Resilience Program. These programs offer grants that do not need to be repaid, aiming to support business stability and growth.

What small business loans are available in Arizona?

Small businesses in Arizona can apply for various loans, including those offered by the State Small Business Credit Initiative. These loans are often geared toward expanding access to capital for small businesses, especially for those that might not qualify for traditional bank loans.

How can minority-owned businesses obtain grants in Arizona?

Minority-owned businesses in Arizona can obtain grants by seeking out programs specifically aimed at supporting diversity in business. These programs may focus on providing technical assistance, financial support, and resources to ensure a more equitable business landscape.

Who provides small business grants in Arizona?

Local and state government agencies, including the Arizona Commerce Authority, offer a variety of small business grants in Arizona.

You can compare small business grants in Arizona with similar programs in other states, such as:

• Illinois Small Business Grants
• Small Business Grants Ohio
• Colorado Small Business Grants & Funding

This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post.

References:

• Resolve Pay
• Lantern Credit