Arizona Small Business Grants

Doing Business in Arizona

Over the last few decades, technology and innovation enabled industries in Arizona have grown in stature. Today, the state has one of the best collaborative business ecosystems in the country. The diverse tech ecosystem is helping towards accelerating innovation. By setting up your business in this ecosystem, you will not only benefit from a robust network of accelerators, incubators, and co-working spaces but will also be able to apply for a variety of Arizona small business incentives.

Why do businesses prefer doing business in Arizona?

Arizona is one of the best states for creating your business footprint. There are several factors that help entrepreneurs to establish and operate successfully like easy access to Arizona small business funding. In a world fueled by high competition and adaptability to evolving technology, an ideal location with a business-friendly ecosystem can be quite helpful. So, let us look at some of the factors that will help you to conduct your business in Arizona. These include:

• Tax Friendly State – One of the reasons why small business owners prefer to start a company in Arizona is low taxes. In fact, the state has a flat income tax rate of 2.5 percent, which is lower than several other states with flat income tax rates like Illinois, North Carolina, and Georgia. There is no estate or inheritance tax in this state. This will help in lowering the tax burden. On top of this, there is a wide variety of tax credit programs that you can participate in or apply for. These Arizona small business incentives programs have been designed to reduce your tax liability.

  Example: If your business creates high-quality employment opportunities in this state then you will be able to apply for the Quality Jobs Tax Credit (QJTC), which is a nonrefundable tax credit program. Similarly, if your business requires the use of heavy machinery then one of the top Arizona small business incentives programs is the Transaction privilege tax (TPT) exemption on various machinery or equipment.

• Business-Friendly Environment – Arizona is quite famous for offering both new and existing businesses an environment that is conducive for rapid growth. Some of the factors that contribute to the business-friendly environment include:
  • Good tax policies including tax exemptions
  • Availability of Arizona small business funding programs
  • Access to a diverse pool of highly motivated workforce
  • Accelerator and incubator programs for startups
  • Growing as a hub for testing as well as scaling of new technology
  • Top startup ecosystem in greater Phoenix
• Strategic Location – One of the salient aspects that is often undermined is the location of Arizona. If you look from the business perspective then it shares an international border with Mexico and a state border with Colorado, Utah, and New Mexico. It has a robust transportation and logistics infrastructure connecting the rest of the nation through Interstate highways.

Small Business Incentive Programs and Grants in Arizona

Arizona small business grants have been designed to provide small businesses with a financial helping hand. These grants are quite useful in the early stages or new company formation stage and even in the operational stage. Apart from grants, there are several other Arizona small business funding solutions available including traditional financing options as well as alternative financing sources. These funding options can help you to explore new opportunities for expansion of your company. You can even use them to conduct research and development (R&D) of new services or products. Let us get to know some of the top grants and other funding programs in the state.

Arizona Commerce Authority Programs

The Arizona Commerce Authority (ACA) is a leading economic development organization with the objective to assist with the growth and strengthening of the state’s economy. They have a three-pronged approach that focuses on recruiting, growing, and creation. They also offer a wide variety of Arizona small business grants and other funding programs that your business can leverage. They have programs that even provide tax relief and small business incentives. Let us take a look at some of the top Arizona small business funding programs by the ACA.

Tax Relief

The Arizona Commerce Authority (ACA) provides certain tax relief programs to small businesses. They are beneficial as these programs will help reduce your tax burden in this state. The Foreign Trade Zone (FTZ) program is one such solution. If your business is located in a zone or sub-zone that comes under a FTZ then you may be eligible for a maximum of 72.9 percent reduction in personal and state real property taxes. Similarly, the computer data center program is one of the top Arizona small business incentives programs. It provides exemptions in Transaction Privilege Tax (TPT) as well as use tax on qualifying purchases of computer data center equipment. This is applicable on the state as well as county level.

Talent and Training

The Arizona Commerce Authority (ACA) programs play a key role in preparing the state for creation of manufacturing jobs in the near future. Established businesses as well as startups in their growth stage are creating a higher number of jobs in the advanced manufacturing industry. This is due to the availability of Arizona small business funding and certain tax credit programs like the Quality Jobs tax credit and the Qualified Facility tax credit programs. You can also benefit from the Arizona Advanced Technology Network, which will provide you with an educated and highly skilled talent pipeline and thus cater to a rapidly expanding market.

Innovation and Entrepreneurship

There are certain programs that are considered to be a different type of Arizona small business incentives program like the Arizona Innovation Challenge (AIC). This is the largest business plan competition in the nation and finalists can receive an award of approximately $100,000. You can even gain access to their Venture Raise and Venture Scale programs that provide customized support. These are focused programs or accelerator courses that will introduce you to the world of startup financial health, various funding options to choose from, and pitching to investors. Apart from this, there is the pioneering IAM program that will provide you with necessary technical guidance and coordination for deployment of automation.

Small business opportunities

The Arizona Commerce Authority (ACA) plays a vital role in the creation of small business opportunities through several Arizona small business funding programs. The Arizona State Trade Expansion Program (AZSTEP) is quite a popular program for entrepreneurs like yourself. This program will assist you to enter export markets as a first time business owner or even help expand into newer markets. Then there is the State Small Business Credit Initiative (SSBCI), which is a federal program administered by the Department of Treasury. You will be able to participate in three programs under this, which are Arizona Loan Guarantee Program, Arizona Venture Co-Invest Program, and Arizona Multi-Fund Venture Capital Program.

Manufacturing opportunities

The economy of the state of Arizona relies heavily on traditional and technology driven manufacturing. So, if you are entering the manufacturing industry then there are several programs that will make doing business in Arizona financially less stressful. There are several sales tax exemptions on various manufacturing equipment like –

• Machinery or equipment that you will use directly in manufacturing
• If you use equipment for directly in producing or transmitting electrical power
• Any equipment or machinery being used for research and development

Rural economic development

If you are planning to start your Arizona business in a rural area or community then there are several targeted programs that you can benefit from. If you set up your company in an opportunity zone then there are dedicated Arizona small business incentives programs that you can participate in. In fact, Arizona is ranked #2 in terms of attracting opportunity fund capital. There is a budget of $2.29 billion allocated by the state for opportunity zones.

International trade

The Arizona Commerce Authority (ACA) is responsible for creating international trade opportunities for new and existing businesses. It has partnered with the Small Business Administration (SBA) for facilitating the Arizona State Trade Expansion Program (AZSTEP). As a part of the initiative, you will be able to participate in the international trade shows and expos while gaining ExporTech export education and planning development simultaneously. There are dedicated and innovative cross-border collaboration programs with Europe, Israel, Mexico, Republic of Korea, and Taiwan.

Form a Startup in Arizona Today!

Other Grants in Arizona

One of the key advantages of doing business in Arizona is the access to a wide variety of grants and tax exemption programs. These small business grants in Arizona play a key role in helping startups, home-based businesses, and first time entrepreneurs to grow sustainable businesses. Grants and other funding opportunities are provided at the state as well as county level. There are several grant programs administered by the government while others are being provided by private organizations. Some of the top grant programs include –

• Small business grant programs available in various cities or at a local level like the PHXbizGrants (City of Phoenix), Phoenix Flash Grants Program, City of Mesa Business Export Assistance Program (BEAP), and Town of Pinetop-Lakeside Façade Grant Program among others.
• There are women based grant programs like the highly popular Amber Grant where you can get a minimum grant of $10,000 and maximum of $25,000
• There is the Fearless Fund for under-resourced entrepreneurs where you can apply for pre-seed level or series A financing
• You can apply for Arizona advanced manufacturing facilities grant where you receive a maximum grant of $75,000.

Ready to Start a Business in Arizona!

If you are planning to start a new company then you will require some form of financial assistance in the initial stages. The Arizona small business incentives programs as well as other grants and loans can help fulfill financial requirements of your company. There are several types of funding options and opportunities that you can avail of in this state. You can even apply for tax credit and exemption programs that will lower your financial burden of doing business in Arizona.