Modernize Your Business With A Good Restaurant Ordering System

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The Difference Between Revolving And Non-Revolving Lines Of Credit

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8 Great Food And Restaurant Franchises To Open In 2019

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What You Need To Know About Funding Your Startup With A Home Equity Loan

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The Complete Guide To Home Equity Loans For Business Purposes

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Maryland Small Business Loans

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The Best Business Loan And Financing Resources For Arkansas Small Businesses

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Eat, Drink, And Be Merry: Liquor Liability Insurance Explained

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The Best Business Loan And Financing Resources For Massachusetts Small Businesses

In 2018, Massachusetts was the fastest-growing state in the Northeast, with its population growing by over 5%. As its population grows, so does the state’s economy. Once known for agriculture, trade, and fishing, this state has grown to become a global leader in finance, biotechnology, and other modern industries. Massachusetts has even been named by as the most innovative state by Bloomberg.

With a strong economy and new opportunities always on the horizon, there’s no better time than now to launch or expand your own small business. Whether you’re the owner of an established business or you’ve only flirted with the idea of entrepreneurship, the state of Massachusetts has small business financing and resources available to you.

If you’re ready to launch your business or take your existing business to the next level, keep reading! Instead of poring through hundreds of small business lenders and resources, we’ve handpicked the best options for you. Whether you’re seeking low-interest loans, fast financing, or free business tools, this guide has you covered. Read on to find out more about the small business resources available to Bay Staters.

Online Business Lenders For Massachusetts Businesses

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Running your own business keeps your schedule full. When you need extra capital for your business, it seems like there aren’t enough hours in the day to head to your local lender. Fortunately, there is a solution that allows you to get the financing you need without spending hours at the bank. That solution is to work with an online business lender.

Through online lenders, you can apply for your loan, submit documentation, and even receive funds all without ever leaving your office. With online lending, you have more choices than ever and many online lenders also have less stringent requirements than traditional lenders. This means that you can access capital even if you have credit score challenges, haven’t been in business for long, or don’t meet typical revenue requirements.

On the one hand, having so many lenders to choose from is great because you can shop around your options. On the other hand, knowing where to even start can be a challenge. Instead of scouring the internet alone, check out what these online lenders have to offer.

SmartBiz

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You don’t have to go to your local bank to get a low-interest, long-term loan. Small Business Administration loans not only have competitive interest rates but are also easier to qualify for than traditional business financing. While you can visit a lender in person to apply for an SBA loan, smart business owners know that SmartBiz is the way to go.

SmartBiz is an online marketplace that has helped small business owners receive more than $1 billion via SBA loan programs. Through SmartBiz, you may qualify for a loan is as little as 5 minutes and receive your funding in just 7 days. The application process is streamlined so you can get the funding you need as quickly and easily as possible.

There are two loan products to consider. The first option is SmartBiz’s SBA Working Capital and Debt Refinancing Loans. These loans can be used to refinance business debt, expand your business, pay for a marketing campaign, hire employees, purchase equipment, or increase your inventory.

Through this program, you could receive $30,000 to $350,000. Interest rates are 8.25% to 9.25% with repayment terms up to 10 years.

To qualify for this loan, you must meet these requirements:

  • U.S. citizen or permanent resident
  • At least 2 years in business
  • Personal credit score of 640 or above
  • Sufficient cash flow for loan payments
  • No bankruptcies or foreclosures in the last 3 years
  • No defaults on government-backed loans
  • No outstanding tax liens

The second SBA loan program available through SmartBiz is the SBA 7(a) Commercial Real Estate Loan. With this loan, you can receive between $500,000 to $5 million to purchase commercial real estate or refinance your existing commercial mortgage. Interest rates are 7% to 8.25% with repayment terms up to 25 years.

The following are the requirements for receiving this loan:

  • U.S. citizen or permanent resident
  • Property must be at least 51% owner-occupied
  • Purchase price must be greater than $500,000
  • No new construction or investment properties
  • At least 3 years in business
  • Personal credit score of 675 or above
  • No bankruptcies or foreclosures in the last 3 years
  • No defaults on government-backed loans
  • No outstanding tax liens

If an SBA loan doesn’t seem like the right option for you at this time, you can also apply for a bank term loan from one of SmartBiz’s lending partners. You may qualify for $30,000 to $200,000 with repayment terms up to 5 years and fixed interest rates starting at 6.99%.

Lendio

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No time to send out applications to multiple lenders? Give Lendio a try. With Lendio, you can get offers from multiple lenders through just one application. Lendio is a loan aggregator that has partnered with over 75 lenders, making it easier than ever to compare your financing options.

Through Lendio, you can apply for nearly any type of business financing, including:

  • SBA Loans: $50,000 to $5 million
  • Term Loans: $5,000 to $2 million
  • Short-Term Loans: $2,500 to $500,000
  • Lines Of Credit: $1,000 to $500,000
  • Equipment Financing: $5,000 to $5 million
  • Startup Loans: $500 to $750,000
  • Accounts Receivable Financing: Up to 80% of receivables
  • Commercial Mortgages: $250,000 to $5 million
  • Business Credit Cards: $1,000 to $500,000
  • Merchant Cash Advances: $5,000 to $200,000

Rates, terms, and requirements vary by product and lender. Time to funding also varies, but some products are available in as little as 24 hours. There is no obligation to accept an offer, and receiving your offers will not impact your credit.

Unsure of which business loan is best for you? Learn more about the different types of small business loans.

OnDeck

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OnDeck has provided $10 billion to businesses around the world, and you could be the next business to get the capital you need. Through OnDeck, you can apply for one of two financing options: term loans and lines of credit.

A term loan provides you with a lump sum of capital in amounts up to $500,000. Short-term loan options come with 3- to 12-month terms and are best for purchases that deliver an immediate return on investment, such inventory or a new marketing campaign. The long-term option gives you 15 to 36 months to repay your loan and is best for larger purchases such as expanding your business or buying equipment.

OnDeck’s short-term loans have simple interest rates starting at 9%. This is the total amount of interest you will pay and is a percentage of your borrowing amount. Long-term loans have a 9.99% annual interest rate. OnDeck also charges an origination fee of 0% to 4% of your loan amount for short- and long-term loans. Payments are made daily or weekly and are automatically deducted from your checking account.

To receive a small business loan from OnDeck, you must have:

  • Time in business of at least 1 year
  • At least $100,000 in annual revenue
  • Personal credit score of 600 or above

If you need a more flexible financing option, consider applying for an OnDeck line of credit. You can receive up to $100,000 to cover unexpected expenses, make up for gaps in income, or for any business purpose. Rates start at 13.99% and payments are automatically deducted from your checking account each week. A $20 monthly maintenance fee will also be applied, but the lender will waive the fee for 6 months if you draw at least $5,000 within 5 days of opening your account.

To qualify for this option, you must have:

  • Time in business of at least 1 year
  • At least $100,000 in annual revenue
  • Personal credit score of 600 or above

Fundbox

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What do you do if your business is performing well, but you don’t have an excellent credit score? There are options open to you, including a line of credit from Fundbox.

Fundbox bases its approval decision on the performance of your business, so you don’t have to have perfect credit to qualify. Through Fundbox, you may be eligible to receive a revolving line of credit with limits up to $100,000. You’ll repay the lender over a period of 12 or 24 weeks. Fees start at just 4.66% of the draw amount.

If you don’t use your line of credit, you won’t pay a dime. If you do make a draw, you can pay your balance off early and save since Fundbox waives all remaining fees. Payments are automatically deducted from your business checking account each week. As you pay down your balance, funds will become available for you to use whenever you need them.

To qualify for a Fundbox line of credit, you must have:

  • A U.S.-based business
  • At least $50,000 in annual revenue
  • A business checking account
  • At least 3 months of transactions in a business banking account OR at least 2 months of activity in supported accounting software

BlueVine

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If you’re seeking a higher limit for a line of credit, you can receive up to $250,000 through BlueVine. Rates start at 4.8% for the most creditworthy borrowers. There are no fees if you don’t use your line of credit. Repayments are made on a monthly or weekly schedule over 6 to 12 months.

To qualify for BlueVine’s line of credit, you must have:

  • Personal credit score of 600 or above
  • Time in business of at least 6 months
  • At least $100,000 in annual revenue

If unpaid invoices are causing your cash woes, BlueVine offers an invoice factoring service that could provide you with up to $5 million. You can receive up to 90% of the balance of your unpaid invoices up front. Then, once the customer pays the invoice, you’ll receive the remaining balance, minus fees. Fees start at 0.25% per week.

To qualify for invoice factoring, you must be a B2B business that meets these requirements:

  • Personal credit score of 530 or above
  • Time in business of at least 3 months
  • At least $100,000 in annual revenue

Amex Business Loans

American Express OptBlue

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Worried that applying for financing will harm your credit score? If you’re an American Express cardholder, there may be an option available for you that has no impact to your credit score.

American Express Business Loans provide you with $3,500 to $50,000 in capital for your small business. You can repay your loan over 12, 24, or 36 months. These loans come with fixed APRs of 6.98% to 19.97%.

This offer is available only to select American Express Business cardholders. By logging into your Amex account, you can find out if you’ve been preapproved. This preapproval will provide the maximum borrowing amount and your maximum rate. After providing some information about your business, you could receive your funds in as little as 3 business days if you’re approved.

Because American Express uses the information it has on file for you, there’s no impact to your credit to apply. To qualify, you must meet these requirements:

  • Hold a Basic Card or Business Card
  • Be in good standing with American Express
  • U.S. citizen or permanent resident
  • Be at least 18 years old

Amex Merchant Financing

American Express OptBlue

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If you don’t qualify for American Express Business Loans, you may be able to get the capital your business needs through Amex Merchant Financing. If your business accepts American Express cards, you could qualify for this funding option.

Amex Merchant Financing provides $5,000 to $2 million to qualified business owners. Repayments are made over 6, 12, or 24 months. You’ll pay one fixed fee of 1.75% to 20% to take advantage of Amex Merchant Financing. Repay early and you can receive a rebate of up to 25% of your fixed fee.

Daily payments are automatically deducted to pay off the lender. You can opt to have a fixed amount taken from your business bank account, or you can choose to get a percentage of your daily receivables withdrawn.

To qualify for Amex Merchant Financing, you must have:

  • A business that accepts American Express cards
  • At least $50,000 in annual revenue
  • At least $12,000 in annual debit and credit receivables
  • Time in business of at least 24 months

Upstart

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Many of the previous options listed require at least a few months in business, but what do you do if you’re looking for capital to launch your business? Time in business requirements could bar you from receiving small business financing. However, you could qualify for a personal loan to use for business expenses.

Because this isn’t a business loan, time in business, annual revenue, and business credit history aren’t considered. Instead, your personal credit score and annual income are used to qualify you for a loan through a lender such as Upstart.

Upstart offers qualified borrowers $1,000 to $50,000. These funds can be used to fund your startup costs or cover other business expenses. Upstart’s APRs range from 7.54% to 35.99% based on creditworthiness. Repayment terms are 36 to 60 months.

To qualify for an Upstart loan, you must:

  • Be a U.S. citizen or permanent resident
  • Be at least 18 years old
  • Have a valid email account and a verifiable name, date of birth, and SSN
  • Have a source of income
  • Have a personal bank account
  • Have a personal credit score of at least 620

In addition to your credit score, Upstart will consider other factors of your personal credit profile. Additional qualifying requirements include:

  • No bankruptcies or public records
  • No delinquent account
  • Less than 6 inquiries over the last 6 months
  • Solid debt-to-income ratio

Banks, Credit Unions, & Nonprofit Lenders In Massachusetts

While online lenders make borrowing easier and more convenient than ever, you may still prefer to go the traditional route with a local bank, credit union, or nonprofit lender. If you haven’t already established a relationship with a local institution, consider one of these lenders that serve small business owners in Massachusetts.

Eastern Bank

Eastern Bank was founded in 1818 and has its headquarters in Boston. Today, there are over 120 locations throughout Massachusetts and New Hampshire in cities including Boston, Burlington, Reading, and Lowell.

Eastern Bank offers multiple financial services for small business owners. The institution not only offers business checking and savings accounts, but entrepreneurs can also take advantage of the following services:

  • Eastern Express Business Loan: Up to $100,000
  • SBA 7(a) Loans: Up to $5 million
  • SBA 504 Loans: Up to $5 million
  • Cash Reserves: Up to $10,000 to protect against overdrafts
  • Business Term Loans
  • Lines Of Credit
  • Business Credit Cards

Eastern Bank also has commercial financing options, including industrial lines of credit, commercial real estate loans, and asset-based lending.

You can learn more by visiting your local Eastern Bank branch or applying for your chosen financial product online.

Metro Credit Union

If you want a more personalized experience, consider joining a local credit union, such as Metro Credit Union. This institution has locations throughout the state of Massachusetts to best serve more than 200,000 members. Metro Credit Union branches are located in cities including Boston, Lawrence, Framingham, and Salem.

As a member of Metro Credit Union, you may be eligible to receive small business financing through one of its lending programs including:

  • Commercial Real Estate Loans
  • Business Lines Of Credit
  • Business Term Loans
  • Unsecured & Secured Business Credit Cards

Metro Credit Union also provides merchant credit card services, payroll services, and additional services to small business owners in Massachusetts.

To apply for financing, you must be a Metro Credit Union member. To become a member, you must:

  • Live, work, or own a business in one of the following counties: Barnstable, Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk, Worcester
  • Open a Metro Regular Savings account with a $5 deposit

Common Capital

Common Capital is a community loan fund and nonprofit organization that provides tools, resources, and financing to small businesses and community projects in order to strengthen communities.

Through Common Capital, small business owners can apply for fixed and variable rate loans and lines of credit. Funding of up to $300,000 is available and can be used for the following purposes:

  • Working Capital
  • Inventory & Supplies
  • Equipment
  • Startup Costs
  • Business Acquisitions Or Expansion
  • Debt Refinancing
  • Leasehold Improvements Or Real Estate

Repayment terms are up to 10 years. Payments can be structured to account for seasonal fluctuations in revenue.
To qualify, you must own a business in the counties of Berkshire, Franklin, Hampshire, or Hampden. If you reside in Worcester County, you may be eligible to apply for the Fast Track Program, which provides up to $50,000 with a fast turnaround.

Loan applications are available online. You must provide historical financial statements and/or three years of future financial projections with your application. Startups must also include a business plan. The typical time to underwrite and close the loan is 4 to 6 weeks after the completed application package has been received.

Small Business Grants In Massachusetts

Grants are another source of financing you can use to start or grow your business. The good thing about grants is that these aren’t loans, so you won’t incur debt. You won’t have to repay the grant or worry about interest or fees.

However, this free money isn’t available to just anyone. Most of the time, you have to meet very specific requirements for small business grants, such as being in a particular industry or being a minority, woman, or veteran business owner. Even if you do qualify, most grants have many applicants.

While it isn’t guaranteed that you’ll receive a small business grant, there’s no harm in applying if you meet all of the requirements. There are a variety of state and federal resources available to help you locate small business grants, but you can kick off your search with these options.

State Trade Expansion Program Grant

The State Trade Expansion Program (STEP) grant is offered through the Massachusetts Office of International Trade and Investment in partnership with the Massachusetts Small Business Development Center Network, the Small Business Administration, and the Massachusetts Export Center. This grant is designed to help offset the costs of international business development and associated marketing costs.

Through this program, eligible small businesses can receive reimbursements of up to $12,000 for expenses including:

  • Compliance testing products for entry into an export market
  • Design of export market-specific marketing media
  • Overseas trade show or conference expenses

To qualify for STEP funding, an online application must be submitted. Proof of payment for the project, service, or activity must also be submitted for consideration. Applicants are also required to match 25% to 40% of funding.

Office Of Safety Workplace Safety Training Grant

The Office of Safety Workplace Safety Training Grant is a reimbursement program for businesses located in Massachusetts. This grant is provided through the Department of Industrial Accidents. Qualifying businesses can receive up to $25,000 to pay for training and education promoting workplace safety.

Businesses of all sizes are eligible to apply provided they are operating within the Commonwealth of Massachusetts and are covered under the state’s Workers’ Compensation Law.

To qualify, you must submit a grant package. Your package must include the grant application, a description of your business, training goals, a budget narrative and summary, qualifications of training providers, and a Department of Revenue Certificate of Good Standing.

Workforce Training Fund

The Workforce Training Fund provides business grants to support the training needs of businesses throughout the state of Massachusetts. There are two grant programs available.

General Program

The General Program is open to businesses of all sizes. Businesses can receive a training grant up to $250,000 through this program. Training grants must be matched dollar-for-dollar by the grant recipient.

Express Program

This program is open to businesses with 100 or fewer employees. Grants of up to $30,000 per company and $3,000 per employee per course are available through this program. Companies will be reimbursed up to 50% of training costs.

Grants can be used to pay for training for current and new employees. An online application can be submitted along with a cover letter, Certificate of Good Standing from the Department of Revenue, and a description of training modules and courses.

Loans & Resources For Startups In Massachusetts

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Finding the loans and resources you need for your startup business doesn’t have to be challenging. If you’re a small business owner in the Bay State, consider putting the following resources to work for you.

SCORE

The SBA’s SCORE program provides free and low-cost services and resources to small business owners. Through SCORE, you can take advantage of free business counseling and mentoring online or at a SCORE location near you.

SCORE also offers local workshops on a variety of small business topics such as accounting, management, and marketing. These events allow you to educate yourself on these topics while networking with other local business owners.

SCORE also has additional tools and resources available on its website. This includes business guides, free templates, and blogs that offer helpful tips and tricks to business owners.

There are multiple SCORE branches located throughout the state of Massachusetts in cities including Boston, Springfield, Amherst, and Salem.

Massachusetts Small Business Development Center Network

Since 1980, the Massachusetts Small Business Development Center (MSBDC) has provided free and low-cost resources to startups and established businesses. Through MSBDC, you can receive free one-on-one business counseling.

MSBDC also hosts free and low-cost seminars and events throughout the state. You can learn more about business topics such as developing your business plan, cash flow analysis, and financing options.

MSBDC offices can be found throughout the state in cities including Springfield, Fall River, Boston, and Salem.

What To Consider When Choosing A Lender

We’ve given you a list of lenders to finance your small business. Maybe you’ve even done your own research and have your own list. Now, it’s time to make a difficult decision: which lender should you work with? It’s important to weigh out all of your options and not just stick with the first lender that gives you an approval. You want to make sure that you make the wisest financial decision for your business. Do this by asking yourself the following:

Why Does My Business Need Money?

What is the purpose of your business loan? Not only will you have to put this on your loan application, but knowing exactly how you plan to use your funds can help narrow down your lender options. Let’s say that you want a flexible line of credit for emergency expenses. If a lender specializes in SBA loans, short-term business loans, or other financing that provides a lump sum, move on to the next lender.

How Much Money Does My Business Need?

Again, this is something you will need to include on your application. But you can also use this information to sort through lenders. If you need financing of at least $100,000, lenders that have lower maximum borrowing limits can be crossed off your list.

Can My Business Afford The Loan?

Lenders will look at a variety of factors to determine if you can afford a loan or other financial product. If you can’t, your application will be denied or you may be approved for a smaller amount. Don’t rely solely on the lender to determine the affordability of your loan. Consider your incoming revenue, your current expenses, and any fluctuations in income. Then, shop around with lenders that not only offer the amount of financing you need but also have the lowest rates and best terms for your situation.

Do I Meet All Requirements?

Do you meet all the requirements of your chosen lender? If a lender requires an excellent credit score, borrowers with scores below this requirement will be declined.

Have bad credit that’s preventing you from getting an affordable loan? If your need isn’t urgent, take the time to boost your credit. Obtain your free credit score, review your report, and take a few easy steps to raise your credit score. This will help you receive higher borrowing amounts, lower rates, and better terms.

Make sure you meet all other requirements, including time in business, annual revenue, and business credit history.

Final Thoughts

Starting or growing your small business can be a challenge. However, with the right resources and a source of capital, you’ll increase your chances for success. The state of Massachusetts offers multiple resources and financing options for your small business. You just need to take the time to evaluate the needs of your business and choose which resources offer the most benefits to you.

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Arizona Small Business Loans

Arizona is one of the fastest growing states in the nation; its warm, arid climate is a big attraction for people suffering from winter fatigue. That swelling population comes with some distinct advantages for entrepreneurs looking to start a business in the Grand Canyon State.

Of course, opening a business anywhere comes with challenges, many of which require money to circumvent. When that happens, you’ll want to know where you can turn to for a cash infusion.

We’ll take a look at some of the types of lending available to you in Arizona, as well as some specific lenders you may want to consider.

The Best Online Business Lenders For Arizona Businesses

If a local lender doesn’t immediately come to mind, you may want to consider an online lender. Most online lenders are willing and able to lend to Arizona-based businesses.

What are the advantages of working with an online lender? Generally speaking, online lenders are faster, have simpler application processes, and more flexible lending standards than traditional lenders. The tradeoff, of course, is they also tend to have higher rates and more concentrated repayment term lengths. That said, the best online lenders offer transparent terms and excellent customer service.

Arizona does have a maximum legal interest rate for loans, but these are easily circumvented with written contracts, so don’t necessarily count on state regulation to keep your rate under control. Note that regulations governing loans usually only apply specifically to loans and not to loan-like products like merchant cash advances.

Since there are tons of online lenders to sift through, here are some of our recommendations to get you started:

OnDeck

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One of the oldest and most mature online lenders, OnDeck offers short-term loans and lines of credit to businesses. They don’t necessarily have the lowest rates in the business, but their product lineup is versatile and transparent, so you should have few surprises.

BlueVine

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BlueVine is an interesting option for businesses that need a line of credit or who have unpaid invoices that they’d like to cash in a little early. Invoice factoring is not for everyone, but it is a way to infuse your business with cash without going into debt.

LoanBuilder

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PayPal’s LoanBuilder service is one of the faster and more transparent digital lenders, allowing you to tweak the terms of your loan somewhat to fit your needs. Their rates are also pretty decent, but as short-term loans, you’ll have to pay them back fairly quickly.

Fundbox

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Businesses with credit issues can have a hard time finding funding, but lenders like Fundbox make it a little bit easier. Like BlueVine, they offer lines of credit and invoice factoring. They also offer a service similar to invoice factoring called Fundbox Pay, which allows sellers to receive money for their services right away.

While Fundbox doesn’t have any hard credit requirements, they do want to see that your business does at least $50K/year in revenue.

Fundera

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An alternative approach to finding an online lender is to use an aggregating service like Fundera. Fundera doesn’t originate their own loans. Instead, when you apply to them, they’ll attempt to pair you with one of their lending partners. The advantage for you is that you’ll effectively be applying to multiple lenders at once with a single application.

Arizona Banks & Credit Unions

As convenient as online lenders can be for small businesses, that’s usually not where you’ll find the best interest rates or terms. Traditional banks aren’t obsolete, they’re just a bit trickier to qualify for post-2008, especially if you don’t have stellar credit.

Typically, the easiest way to get a bank loan is to have a pre-existing relationship with the bank you plan to apply to. Having the requisite accounts in place, as well as a convenient, in-house record of your transactions, can smooth out some of the bumps you might encounter in the application process.

If you have a good relationship with your local bank or credit union, be sure to inquire about their business products. National banks with branches in Arizona include:

Chase Bank

America’s biggest bank has branches scattered through Arizona’s major population centers. Despite their size and market share, they’re still pretty traditional when it comes to business loans, so you’ll have to apply in person.

If you can meet their requirements and don’t mind dealing with an enormous lender, Chase offers some of the best business loan rates out there.

Borrower requirements:
• Must have excellent credit (high 600s)
• Must have access to a Chase Bank branch
Read our Chase Bank review

Bank Of America

Another bank with a big presence in the Phoenix-Scottsdale area, Bank of America has very stringent lending standards. They do offer a more modernized application process than many of their competitors, however.

Line of credit borrower requirements:
• Must have been in business at least 2 years.
• Must have a personal credit score of 670 or above.
• Must have revenue > $200,000 for unsecured products, or greater than $250,00 for secured products.
Read our Bank of America review

 

US Bank

US Bank is one of the smaller of the big national banks, with a reputation for being a bit more personable and flexible. You’ll find them mainly around Phoenix and Tuscon.

Borrower requirements:
• Must be located in a state served by U.S. Bank
• Must have been in business for two years
Read our U.S. Bank review

 

Credit Unions

If you’re looking for the absolute best rates on loans, it’s hard to beat credit unions. As non-profit entities, credit unions can, at least in theory, provide lower rates than similar for-profit entities. On the other hand, be aware that even the biggest credit unions are nowhere near the size of even most mid-sized banks, so they can’t wield the advantages that come with scale.

Credit unions offering business loans are uncommon, but many offer personal loans that can be used for smaller business expenses.

Some of the more accessible credit unions in Arizona include:

  • Desert Financial Credit Union 
  • OneAZ Credit Union
  • Arizona Federal Credit Union
  • Vantage West Credit Union
  • TruWest Credit Union

Small Business Grants In Arizona

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Grants represent the holy grail of business financing: free money! Of course, as you can imagine, you won’t be the only one seeking it. Competition for grants is fierce and time-consuming; expect to make grant-seeking a part-time job if you choose to seek funding this way.

Grants tend to be targeted — to a specific industry, to a specific problem that needs to be solved, or to a specific demographic. They can be public or private in origin. Find a grant to apply for that fits the profile of your business and/or you as a business owner.

For some general advice on where to seek them, check out our grant feature.

Some Arizona-specific options you may want to consider include:

Arizona Step Grants

The AZSTEP program combines funds from the federal Small Business Administration with those of the Arizona Commerce Authority. These grants are designed to help small businesses enter the export market and increase their international sales.

Arizona Innovation Challenge

Held twice annually, the Arizona Innovation Challenge is a competition awarding applicants up to $150,000, with 10 awardees named each cycle. The grant is designed to help tech companies commercialize their products. An interesting note: you don’t actually have to live in Arizona to apply, you just have to be willing to relocate to Arizona within a 12-month timeframe.

Arizona Job Training Grants

Arizona’s Job Training Program can provide employers creating new jobs a grant that reimburses up to 75 percent of their eligible training expenses. Worth looking into if you’re expanding.

Resources For Startups In Arizona

Starting a business can be an anxiety-producing experience if you don’t have a network ready to support and advise you. Some organizations and programs that might be able to help you include:

  • Arizona Commerce Authority: A public-private economic development organization oriented around expanding Arizona businesses and recruiting new ones from out-of-state.
  • Arizona Small Business Association: A private organization that offering information and resources to the Arizona business community.
  • Small Business Administration: Though technically a federal agency, the SBA publishes state-specific information such as the Arizona edition of their Small Business Resource Guide.

What To Consider When Choosing A Lender

Even if your lender search feels desperate, remember that you still are their client, not the other way around. And that means they need to meet your requirements as well.

Need some help narrowing down lenders? Here are some factors to consider:

  • Your Industry: Some lenders specialize in lending to specific industry. Others can’t or won’t lend to certain industries. If they can’t write you a loan, cross them off your list.
  • Borrowing Amount: If you need $5,000, you’ll be looking at different lenders than if you need $5 million. Choose the right tool for the job.
  • Rates & Fees: How much is it going to cost you? Are the lender’s rates in line with the industry standard? Do they tell you what additional fees they charge, or do they hide them?
  • Time To Funding: Do you need the money right away or next quarter? Choose a lender that can work with your timetable.
  • Term Lengths: You’ll want to know how quickly you have to pay the money you’re borrowing back. Make sure you can afford the loan over the long-term.
  • The Type Of Expense Being Financed: Some financial products are limited in what they can be used for. Do you need a lump sum of cash? Or do you need a line of credit that you can draw upon periodically?
  • Collateral: Secured loans and lines of credit require some form of collateral, usually in the form of an asset, real estate, or cash deposit. If you don’t have collateral to put it, you’ll want to look at unsecured loans.

Final Thoughts

Companies seeking financing in Arizona have a wealth of options so long as they know where to look. And remember that just as important is finding a funding source that fits your needs and strategy.

Didn’t find what you were looking for? Want to see more options? We can help you compare lenders and credit cards.

Just starting out? Check out our resources for startups.

Need more specialized information? Check out our small business loan recommendations for veterans, women, minorities, or individuals with bad credit.

What’s Next
    • Learn what you can write off as small business tax deductions
    • Business loan options that don’t require a credit check
    • A guide to consolidating business debt

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