About this programme
The Arizona Loan Guarantee Program (AZLGP) is one of three programs the Arizona Commerce Authority (ACA) runs under the State Small Business Credit Initiative (SSBCI), a federal program administered by the U.S. Department of the Treasury. SSBCI exists to strengthen state programs that support private financing for socially and economically disadvantaged businesses (SEDI-owned businesses) and very small businesses (VSBs). SSBCI itself is not a grant program, and each business still has to meet the requirements set by the lender or investor it works with.
Under AZLGP, the ACA guarantees up to 50% of the principal on loans that partnering lenders make to eligible businesses. The guarantee reduces the lender's risk so they can extend more capital to small businesses across Arizona. No loans come directly from the ACA; the guarantee only backstops loans made by enrolled Community Development Financial Institutions (CDFIs).
Arizona is currently partnering with three CDFIs to deliver AZLGP: Clearinghouse CDFI (a direct lender focused on loans between $500,000 and $12 million, collateralized with commercial real estate), Lendistry CDFI (a minority-led lender offering financing from $50,000 to $5,000,000), and Prestamos CDFI, a division of Chicanos Por La Causa that has served underserved communities since 1980 with loans from $10,000 up to $1 million plus business consulting.
How it works
A business does not apply to the ACA for a loan. It applies directly to one of the three enrolled CDFIs, which underwrites the loan using its own criteria and makes the lending decision at its sole discretion. If approved, the ACA's guarantee covers up to 50% of the loan principal, which is what lets the CDFI extend the loan in the first place. Enrolled lenders' capacity to lend still depends on each lender's own available capital.
There are no job-creation requirements to qualify for a guaranteed loan, though the application asks for the number of existing employees.
Rate, term, and collateral requirements are set individually by each lender, not by the ACA.
Who can apply
Borrowers must be Arizona businesses with fewer than 750 employees (counting any parent company and all locations) that benefit the state and its residents. This includes state-designated charitable, religious, or other non-profit or philanthropic institutions; government-owned corporations; consumer and marketing cooperatives; faith-based organizations; sole proprietors; independent contractors; worker cooperatives and other employee-owned entities; and Tribal enterprises, all provided the loan is for a "business purpose" as defined by SSBCI 2.0 guidelines.
Loan proceeds can be used for startup costs, working capital, franchise fees, equipment, inventory, and the purchase, construction, renovation, or tenant improvements of an eligible place of business, as well as most tangible or intangible assets. Funds cannot be used for goodwill related to business acquisitions or for passive real estate investment.
Several business types are excluded: businesses where any principal has been convicted of a sex offense against a minor; businesses engaged in speculative price-fluctuation activities (unless incidental to normal risk management); businesses earning more than half their annual net revenue from lending (unless they are a non-depository CDFI or Tribal enterprise lender); pyramid sales businesses; businesses engaged in activity that's illegal under federal or local law, including direct or indirect marijuana/THC businesses; businesses earning more than one-third of gross annual revenue from legal gambling; and businesses principally engaged in passive real estate investment, securities purchases, or lobbying.
Frequently asked
Can I apply directly to the ACA for an AZLGP loan?
No. The guarantee only covers loans made by enrolled lenders; the ACA does not lend directly. You apply through one of the three partnering CDFIs.
Which lenders are enrolled in the AZLGP?
Clearinghouse CDFI, Lendistry CDFI, and Prestamos CDFI. Each has its own loan size range and application and underwriting process.
Do I need to create jobs to qualify?
No, there is no job-creation requirement for a guaranteed loan, though the application asks how many employees you currently have.
Can I use the loan to renovate my building?
Yes, funding can support commercial real estate transactions for owner-occupied spaces or leasehold improvements, but it cannot be used for passive real estate investment.
What determines my interest rate and loan term?
Each enrolled lender sets its own rate, term, and collateral requirements; the ACA's role is limited to guaranteeing up to 50% of the principal.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.