Governor Hobbs highlights success of state’s microbusiness loan program

TUCSON, Ariz. (KGUN) — Arizona Governor Katie Hobbs celebrated that impact during her recent visit to Tucson. $5 million loan program It has been about supporting entrepreneurs and their plans to run micro businesses.

Arizona legislature passes funding in 2023; It allows businesses with five or fewer employees to apply for low-interest loans of up to $50,000.

Hobbs’ first stop on Thursday Serious HouseIt is one of the first microbusinesses in Pima County to receive a loan from the program. Earnest House helps former inmates reintegrate into society and offers them housing, transportation and employment support. Co-founders Danny and Jessica Howe shared with Hobbs that having this type of funding creates a positive ripple effect.

“When clients have a place to stay, they have more time and capacity to find work,” Danny Howe said.

“We wanted to highlight the small business loan program and the good work it does in the community,” Hobbs said. “Also, this program (Earnest House) is incredible in terms of how they help people reduce reentry and recidivism.”

Following that tour, Hobbs headed downtown to meet with community development groups, including Groundswell Capital, YWCA of Southern Arizona, Startup Tucson, and the Community Investment Corporation (CIC).

In roundtable discussions, Hobbs and group leaders discussed ways to help small businesses gain greater access to capital and conventional loans.

Dre Thompson, President and CEO Groundswell CapitalHe noted that 80 percent of small businesses in Southern Arizona have fewer than ten employees. Groundswell Capital is one of two community development financial institutions (CDFI) was selected to manage microbusiness loan funds in Pima County.

“Sometimes small businesses get overlooked when you really think about building an economy,” Thompson said. “We see small businesses as drivers of job creation, and that’s especially important in Tucson.”

Hobbs said the sense of collaboration among groups in Pima County shows the loan program is a success. “They all talk to each other and know their community,” Hobbs said.

CIC chief executive Danny Knee said he felt the government was listening to and meeting the needs of the small business community. “There are a lot of innovative things in the small business ecosystem, both in terms of financing and technical assistance provided,” Knee said.

Knee also said this innovation will be crucial to the long-term success of the program. “If we want to help more people, and we want to help people who don’t already have assets, then we’re going to have to experiment and work to find some substitutes.”