Are you overwhelmed with the bevy of lenders and loan types out there? As a small business owner in the Grand Canyon State, where should you turn when you need financing to fund costly or unexpected business expenses?
We’ve got the answers you need to find small business loans in Arizona as well as a list of organizations offering helpful resources to local entrepreneurs.
The Small Business Landscape in Arizona
Arizona is one of the top 25 states for businesses, according to Forbes. No doubt in part due to the increase in the number of people and companies that call the area home. So much so, that the state is expected to experience the third-fastest population growth in the country by 2023, with business growth projected to be on par.
While Arizona is home to many notable companies, including PetSmart and U-Haul, small businesses employ 43.7% of the private workforce, according to the U.S. Small Business Administration (SBA).
Here’s a snapshot:
Small Business Workforce in Arizona
More than 590,000 small businesses are located in Arizona, according to SBA, accounting for 1.1 million private-sector employees in the state.
Top 10 Small Business Industries in Arizona
The SBA also listed the following industries as being the top 10 among small firms.
- Professional, scientific and technical services
- Other services (except public administration)
- Real estate, rental and leasing
- Construction
- Retail trade
- Health care and social assistance
- Administrative, support and waste management
- Transportation and warehousing
- Arts, entertainment and recreation
- Finance and insurance
5 Small Business Lenders in Arizona
1. Western State Bank
This area bank is accredited by the Better Business Bureau (BBB), through which it has an A+ rating. Whether you’re looking for equipment financing in Arizona or a commercial real estate loan, you’ll find it here.
Its loan offerings include:
- Floor plan lines
- Equipment leasing
- Vehicle and equipment loans
- Operating lines of credit
- Real estate construction and permanent financing loans
- SBA loans, including 7(a), 504, Express and subordination loans
The bank also participates in the following programs, through which additional financing may be available:
- Bureau of Indian Affairs
- Federal Home Loan Bank
- Rural Development (USDA)
- Small Business Lending Fund
- Dakota Certified Development Corporation
Bank locations include Chandler, Casa Grande, Mesa, Scottsdale, Sun City and Sun City West.
2. Alliance Bank of Arizona
If you’re in search of small business loans in Arizona, consider this bank. It has an A+ rating from the BBB and is a division of Western Alliance Bancorporation, which Forbes ranked sixth among America’s Best Banks.
Available financing includes:
- Secured loans
- Business credit cards
- Revolving lines of credit
- SBA loans
- Equipment financing
- Commercial real estate lending
- Hotel franchise financing
- Technology financing
- Mortgage warehouse lending
- Nonprofit financing
Branch locations include Tucson, Chandler, Flagstaff, Gilbert, Scottsdale, Mesa, Phoenix and Chandler.
3. Republic Bank of Arizona
This local lender has a 5-star rating on Yelp as well as an A+ rating from the BBB. There are 2 locations in Phoenix and 1 in Scottsdale.
Small business loans at this Arizona bank include:
- Accounts receivable financing
- Business term loans
- Equipment loans
- Business lines of credit
- SBA 7(a) and 504 loans
- Commercial real estate loans (for purchase, refinance or construction)
4. BMO Harris Bank
Rated a “Top Regional Bank 2020” by Bankrate and earning an A+ rating from the BBB, this bank makes our list of top conventional lenders offering small business loans in Arizona.
- SBA loans
- Business credit cards
- Fixed-rate business loans ($25,000-$1,000,000)
- Variable-rate lines of credit (from $10,000-$1,000,000)
- Business real estate loans (from $25,000-$1,000,000)
- Equipment financing
- Dental practice financing
- Trucking financing
Visit one of 25 locations throughout Arizona, including Scottsdale, Mesa, Cave Creek, Phoenix, Tempe, Gilbert and Chandler.
5. Commerce Bank of Arizona
The BBB also gave this Arizona lender an A+ rating. Small business owners can visit one of 4 locations in Scottsdale, Green Valley and Tucson.
Financing options include:
- SBA 7(a) and 504 loans
- Revolving business lines of credit (up to $500,000)
- Business term loans
- Equipment loans (up to 90% of purchase price)
- Commercial real estate loans for purchase, refinance or construction (up to 75% loan to value, including fees financed)
Alternative Forms of Financing in Arizona
While there are conventional banks in Arizona offering competitive interest rates and terms, the process to apply and get funded can take time. It can also require extensive paperwork, a solid credit history and an offering of collateral.
Whether you’re seeking a short-term loan for working capital or equipment financing in Arizona, alternative lenders can get you the funds you need. They offer a streamlined funding process and are able to approve applicants with lower credit scores than banks typically require.
Alternative financing applications are completed online and funding is available fast, in some cases, within 24 hours of approval. Often, the trade-off is shorter repayment terms and less competitive rates.
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Small Business Resources in Arizona
If you’re looking for helpful resources to start or grow your small business, you can contact your local city’s office or visit their website to see if they have any recommendations. Additionally, consider the following organizations dedicated to the success of small businesses in Arizona.
Arizona Small Business Development Center Network
This SBA resource partner offers a wealth of services available at 10 centers throughout the state. Locations include Casa Grande, Flagstaff, Kingman, Phoenix, Prescott, Show Low, Sierra Vista, Thatcher, Tucson and Yuma as well as satellite and meeting sites.
Services include:
- Free 1-on-1 business counseling sessions and assistance with the following:
- Business plans
- Cash flow projections
- Capital requirements
- Sales planning and assessments
- Marketing planning
- Technology plan development
- Importing and exporting
- Clean technology and green initiatives
- Affordable workshops, seminars and other events for entrepreneurs
SCORE
This nationwide SBA partner has 24 locations throughout Greater Phoenix, Southern Arizona and Northern Arizona. SCORE is widely known for its free mentorship programs, in which entrepreneurs can meet with experienced professionals for business counseling and advice.
In addition, small business owners can attend free or low-cost educational workshops, seminars and online courses. Topics range from brand building to website building and more. SCORE’s blog also provides tips and information on topics of interest to small business owners.
Women’s Business Center
Offered through the YWCA of Southern Arizona, the Women’s Business Center is partially funded through a cooperative agreement with the SBA. After attending an orientation session, small business owners can participate in an individualized coaching session in English or Spanish. Additionally, courses are offered on helpful topics such as QuickBooks, financial literacy and business plan development.
