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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on September 4, 2024. Next review due October 1, 2025.
Small business grants can provide crucial funding for Arizona entrepreneurs seeking to launch a startup or grow their current business. Although business grants are typically difficult to secure and often come with strict qualifying rules, they have major benefits that are very hard to beat: Grants are free money. You don’t have to repay the funds. There’s no interest to pay. No debt to carry.
Provided by Government departments, corporations, foundations and other organizations, business grants can be used to support business opportunities, or initiatives in the arts, education, research and more. However, Arizona entrepreneurs seeking a business grant should expect a lengthy application process, typically needing to meet strict guidelines, timelines and other qualifying criteria. Competition for this type of funding is often fierce and even if you qualify, the award sum may be small requiring you to seek additional finance.
Be aware that many business grants are tied to specific goals – entrepreneurial, educational, creative and motivational – and selection committees have full control of the award process and the sums distributed. To succeed, you will usually need a strong business plan that includes a feasibility study and an indication of how you intend to keep the venture going in the post-grant period.
Lastly, if you receive an award, the money may come to you all at once, but more usually, it will come in stages – either based on a set calendar or on your venture achieving fixed objectives. Unlike business loans, grants do not need to be repaid, making them a critical financial resource for ventures that cannot sustain a large financial burden.
Everything’s big in the Grand Canyon State, and that includes the range of small business grants available. Here are some of the best to get you on your way:
US Grants is a one-stop portal to find and apply for government grants, stimulus packages and funding opportunities from local, State and federal government agencies. Available Arizona small business grants include funding initiatives for organizations that operate in the fields of tech, health, research, sciences, agriculture, the environment, etc.
MORE: Grants for farmers.
The City of Phoenix makes local and federal grants available to community organizations serving the city. Businesses and non-profits working in the areas of the arts, workforce development, community development, human and social services, housing, tribal gaming, public safety and public transportation can apply for various schemes and initiatives. Grants are typically competitive and eligibility rules and award sums vary with each opportunity. Check the application data, closing dates and sums available by searching each grant sector.
The Arizona SBDC provides an alphabetical registry of grant programs from state, county, city, and local organizations. Small business owners can apply for +25 grants covering everything from food transportation and business development to grants for minority-owned businesses.
MORE: Other grants for minorities and black women.
Originally launched in 2021 with a $3.5million funding pot, the EmergeAZ Fast Grant enabled 40 Arizona tech and science-based startups to conduct R&D, launch products, expand their facilities and grow into new markets. Now, in a partnership between InvisionAZ, StartupAZ and the office of the Governor of Arizona, the EmergeAZ Fast II Grant continues the good work. $1.5 million has been allocated to support up to 60 Arizona entrepreneurs and startups with emerging technologies that are designed to address current and future economic, health, or societal challenges. Current award-winning projects include fitness trackers, digital car dealerships, educational programs and workforce training software.
The Arizona Commerce Authority has partnered with the US Small Business Administration to facilitate the Arizona State Trade Expansion Program (AZSTEP). AZSTEP provides grant funding to support Arizona small businesses in entering export markets for the first time or expanding into new markets.
As well giving small businesses access to grant funding, AZSTEP initiatives include:
The Arizona Commerce Authority has curated a collection of SBIR/STTR resources to mobilize and equip the state’s startups and small businesses to successfully compete for federal research opportunities. Grants include the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs – initiatives designed to fund tech startups and small businesses and stimulate technological innovation. Eligibility, award sums and application criteria vary according to sector you apply for.
The WomensNet Amber Grants awards multiple grants per year to women wishing to start or grow their own business. $10,000 is offered monthly in three separate categories (total of $30,000 per month available). Participants who win a monthly prize also automatically qualify for the draw for an annual $25,000 award – with three prizes available, one for each award category.
You can apply for any of these grants by completing an online application and paying a $15 entrance fee.
MORE: Business grants for women.
Business loans may provide an alternative source of funding for your business or new venture. Don’t miss on checking out options of small business loans in Arizona.
Online lenders will typically be the best option for this type of financing, but you may pay higher interest rates and fees than you would with traditional banks. Credit checks are standard with most commercial financing, but depending on the type of loan you choose, you may not need to provide collateral:
Term loans are the most common type of commercial loan. You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. Collateral may be required. Also look out for the small business loans in Arizona specifically.
A business line of credit is a business loan that functions like a high-value credit card. Borrowers can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. You only pay interest on the sums you withdraw, not the whole credit line. This can significantly reduce your borrowing costs. Collateral may be required.
Also known as account receivables financing. Borrow against the value of your unpaid invoices. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised. Your invoices act as security for the loan, no added collateral required.
Equipment loans use the asset you’re financing as security – no added collateral is required. You use the equipment as you pay for it and the lender maintains a lien on the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright.
Merchant cash advances are designed for businesses that accept customer payments by credit and debit card. You borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.
Revenue-based financing functions like a merchant cash advance but with higher borrowing limits. Based on the size and regularity of their total revenues, (not just their credit card sales), businesses may receive a lump sum and pay it back over a short-term schedule, typically by small deductions from their daily sales. This type of loan can usually be secured quickly as qualification rules are less intensive and credit scores are not so critical. No added collateral is required.
Nonprofit and community-based lenders can provide SBA Microloans to business owners who may struggle to secure standard business financing. Available up to $50,000, SBA microloans also come with more relaxed qualifying rules and can usually be secured with FICO scores as low as 500, or even with no credit score at all. Be aware that these type of business loans often require a personal guarantee that makes you personally responsible for the debt.
Working with business finance experts can make all the difference when applying for grant funding. Contact Swoop to discuss your borrowing needs, get help with your application and compare top quality small business grants and business loans from a choice of providers. Give your business the chance it deserves. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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