Small Business loans and grants

The U.S. Government does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. The U.S. Government does offer some grant programs, but these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments. The following agencies offer services in direct relation to small business loans.

1. Business Development Finance Corporation (BDFC) is a private non-profit and is a US Small Business Administration Certified Development Company. As an economic development lender, BDFC’s primary mission is job creation/retention and assists firms which are starting or expanding. BDFC offers the SBA 504 loan program for the purchase of owner occupied commercial real estate anywhere in Arizona. The SBA 504 program offers a low down payment and a low fixed interest rate SBA loan for 20 years. BDFC also offers small loans ranging from $10,000 to $150,000 to firms located within Tucson city limits. These small loans have a low fixed interest rate, terms of up to five years and no prepayment penalty.

2. Chicanos Por La Causa, Inc. provides economic opportunities for small and emerging small businesses in Arizona, by providing loans along with technical assistance. The following loan programs are offered: SBA Microloan Program addresses the problems encountered by small business entrepreneurs seeking financing within the range of $2,000 to $35,000, and emerging micro-enterprises within the target areas. The SBA Community Express Loan provides financing for business needs that fall between the Microloan program and conventional loan programs. Loans range from $35,000 to $250,000.

3. The Microbusiness Advancement Center administers a microloan program, funded by the SBA, the US Deparment of Agriculture and private and organizational donors. The Microbusiness Advancement Center "fuels" microbusinesses with loans ranging from $1,000 - $20, 00 (the average is $10,000). The FUEL program is dedicated to financing microbusinesses that are not eligible for funding by commercial lending institutions. FUEL works with the Microbusiness Training and Support Program to provide microloan applicants with critical business training, support, referrals and post-loan services.

4. The Small Business Development Center at Pima Community College can help you identify the lenders, which are the most likely to accommodate your stage of business and your situation; we can help to define your actual need for financing and your ability to repay it; we can help with your loan application, including the preparation of your business plan and presenting your case to the bank or lender; we can help you ensure that you have adequate control over your expenses and cash flow so that the lender has maximum assurance of getting repaid. 

5. The US Small Business Administration (SBA) says that while poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second. Whether you're starting a business or expanding one, sufficient ready capital is essential. But it is not enough to simply have sufficient financing; knowledge and planning are required to manage it well. These qualities ensure that entrepreneurs avoid common mistakes like securing the wrong type of financing, miscalculating the amount required, or underestimating the cost of borrowing money.