Grow Arizona Direct Loan Program

About the Program
This program is designed to assist borrowers who do not meet qualifying criteria for SBA 504.

For more information, please contact:
Joseph Lunsford
Business Development Officer
3300 N. Central Ave.
Suite 600
Phoenix, AZ 85012
Ph: 602-381-6282, ext. 37
Ph: 480-221-5346 (cell)

Loan Amounts
Stand Alone Structure
  • 85% - 90% of total project cost or appraised value, whichever is less
  • Loan limit: $1.5 MM ($2.5 MM for the New Markets Grow Arizona)
Participation Structure
  • 85% - 90% of total project cost or appraised value, whichever is less
  • Loan limit: $1.5 MM ($2.5 MM for the New Markets Grow Arizona)
  • BDFC will assist in securing private lender to loan in 1st position on 50% of the project
  • Grow Arizona Loan will be issued in 2nd position for up to 35% or 40% of the total project
  • Borrower contributes 10% - 15%
Terms, Rates & Fees
Regular Grow Arizona
  • Loan term: 20 years
  • Rate: 10 year Treasury Note plus 4.66%
  • Origination fee: 2.5% of loan amount
New Markets Grow Arizona
  • Loan term: 25 years
  • Rate: 7 year Treasury Note plus 2.4%
  • Rate after 7 years: 10 year Treasury Note plus 3.85%
  • Origination fee: 1.5% of loan amount
SBA 504 Equity Injection Grow Arizona
  • Loan term: 20 years but can be shortened if secured by collateral other than SBA project property
  • Rate: 10 year Treasury Note plus 4.66%
  • Origination fee: 2.5% of loan amount
Qualifications
Mandatory
  • 50% of employees and 50% of company assets must be located in low-income census tract.
  • Project must be located in a qualified low-income census tract. Contact the BDFC officer for specifics.
Must meet one of the following criteria:
  • Job creation and/or retention
  • Project located in target business development area
  • Serve disadvantaged populations as business owners
  • Qualified non-profit businesses
  • Project meets miscellaneous community impact objectives