OBTAINING BUSINESS FINANCING

Many people are reluctant to begin a business venture because they fear that they will not be able to obtain a bank loan. Others become overwhelmed by the paperwork involved in securing financing. However, there are a number of organizations in Tucson which will provide free or low cost assistance in: determining whether your business will require financing; creating the financial projections required by lenders; explaining tax consequences of financing options; and by actually loaning you capital or helping you obtain a loan.

• Arizona Department of Commerce (800) 542-5684 or 628-6690 www.azcommerce.com provides information regarding income tax credits and property tax incentives for establishing businesses in an "Enterprise Zone," may provide loans, and publishes The Small Business Book, a guide to establishing and operating a business in Arizona.
• Business Development Finance Corporation 623-3377 offers assistance in assembling loan documents and may also provide low interest financing.
• Chicanos Por La Causa 882-0018 cplc@azstarnet.com offers general assistance with small business loans and may also provide financing.
• Self-employment Loan Fund (602) 340-8834 offers loan assistance.
• South Tucson Economic Development Department 792-2424 offers assistance with financing, expansion and relocation, site-selection and demographics.
• Tucson Urban League 791-9522 provides training in marketing, operating and financing businesses, information on loans and business plan development.
• US Small Business Administration (602) 745-7200 www.sba.gov offers government-guaranteed business loans, publications and workshops.

FINANCING OPTIONS

Bank Loans (through any lending institution)
SBA Loans including:

• Loan Guarantee: umbrella loan program, short and long-term loans;
• LowDoc: loans of $100,000 or less, involves only minimal paperwork;
• CAPLines: 5 types of loans to provide short-terms working capital;
• Export Working Capital Program: short-term financing for export-related transactions;
• International Trade Loans: Short and long-term financing for businesses involved in exporting or which are adversely affected by import competition;
• Defense Loan and Technical Assistance: assistance to defense-related businesses;
• MicroLoan: short-term, small scale loans of $100 - $25,000 made through non-profit groups such as PPEP and Chicanos Por La Causa; and
• Certified Development Companies: (in Arizona, the Business Development Financial Corporation) loans to companies for relocation from rental to business-owned property.

Venture Capital (through venture capital firms)

Micro Loans (available through SBA and Chicanos Por La Causa)

Factoring (the purchase of account receivables)

Disclaimer

Telephone numbers, organizational names, web sites, and services offered by listed organizations, agencies and companies listed in this fact sheet may change frequently. If you are unable to contact an organization at the telephone number listed above, or if an agency does not provide the services mentioned above, look for an alternative listing in your telephone directory or contact an alternative organization or agency.

©2000, Thompson Law Group, P.C.

Lisa C. Thompson, Esq.
Thompson Law Group, P.C.
2321 E. Speedway Blvd.
Tucson, Arizona 85719 - USA
www.thompsonlawgroup.com
(520) 882-5633  Fax: (520) 745-0616