Small businesses in Arizona, specifically those with a team no larger than five, now have a new growth ally in the form of the Arizona Microbusiness Loan Program, a recent launch by Governor Katie Hobbs together with the Arizona Office of Economic Opportunity (OEO), this initiative will funnel $5 million towards the provision of loans for small-scale operations across Arizona, businesses that constitute an integral part of the state's economic fabric can now receive up to $50,000 in assistance, as reported by an announcement from the Governor's office.

Hobbs expressed her administration's dedication to building an economy "that works for everyone" while Carlos Contreras, OEO Cabinet Executive Officer, elaborated on the positive impact the program aims to make by working alongside Community Development Financial Institutions (CDFIs) and non-profit community partners, there's a common goal of uplifting small businesses with not just funds but also business education and training, in the pursuit of injecting a robust dose of vitality into the microbusiness sector, significant in overlooked communities, especially considering the challenges these small entities face in securing conventional loans from traditional financial institutions.

The partnership network consists of five established Arizona microbusiness lending programs, which met the mark in two rounds of competitive grant solicitations earlier this year, a glance at the chosen partners spans Growth Partners Arizona for northern counties, Native Community Capital for Tribal lands, Community Investment Corporation teamed with Groundswell Capital for southern regions, Verde Valley Regional Economic Organization (VVREO) for the Verde Valley area, and Border Financial Resources looking after Yuma County.

According to figures, there are over 85,000 microbusinesses in Arizona that employ around 155,000 people, these ventures often grapple with challenges such as scarce credit history, inadequate collateral, or lacking business experience and financial documentation, to ease these troubles, the program will be extending its aid until 2029 with the hopes that the cycle of loan repayments will perpetuate further funding opportunities.

Governor Hobbs underscored the importance of the program during her address at the Rural Policy Forum in Clarkdale, followed by a roundtable that served as an earnest platform for business owners to express their anticipation for not just the funds, but the skill-building educational programs poised to secure sustainable growth, expressed Carlos Contreras, emphasizing the sentiment of empowerment that permeates this resolution to backing the underdog of Arizona's economy – the microbusiness.