TUCSON, Ariz. (KGUN) — On her latest visit to Tucson, Arizona Gov. Katie Hobbs celebrated the impact a $5 million loan program has had in supporting entrepreneurs and their plans to run micro-businesses.
The Arizona legislature passed the fund in 2023; It allows businesses with five or fewer employees to apply for low-interest loans up to $50,000.
Hobbs' first stop Thursday was at the Earnest House, one of the first microbusinesses in Pima County to receive a loan from the program. Earnest House helps former inmates reintegrate into society, offering them housing, transportation and employment support. Co-founders Danny and Jessica Howe shared with Hobbs that having this kind of funding has a positive ripple effect.
"When clients can have a place to stay, they have more time and capacity to find jobs," Danny Howe said.
“We wanted to highlight the small business loan program and the good work that it’s doing in the community,” Hobbs said. "Also, this program (Earnest House) is incredible in terms of how they’re helping folks with reentry and reducing recidivism.”
After this tour, Hobbs went downtown to meet with community development groups, including Groundswell Capital, the YWCA of Southern Arizona, Startup Tucson and the Community Investment Corporation (CIC).
In their roundtable discussion, Hobbs and the group leaders discussed ways to help small business get more access to capital and traditional loans.
Dre Thompson, President and CEO of Groundswell Capital, noted 80 percent of small businesses in Southern Arizona have fewer than ten employees. Groundswell Capital is one of two community development financial institutions (CDFI) chosen to administer the microbusiness loan funds in Pima County.
“Sometimes, small businesses are overlooked when you’re thinking of really building an economy,” Thompson said. “We see small businesses as the driving heart of job creation and it’s so important in Tucson especially.”
Hobbs said the sense of collaboration among groups in Pima County shows the loan program is finding success. "They all talk to each other and know their community," Hobbs said.
Danny Knee, CIC executive director, said he felt the state was listening and delivering on the needs of the small business community. “There are a lot of innovative things in the small business ecosystem in both funding and technical assistance being given," Knee said.
Knee also said this innovation will be crucial for the program’s long-term success. “If we want to help more people and we want to help people who don’t have assets already, then we are going to have to experiment and work on finding some substitutes.”
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Joel Foster is a multimedia journalist at KGUN 9 who previously worked as an English teacher in both Boston and the Tucson area. Joel has experience working with web, print and video in the tech, finance, nonprofit and the public sectors. In his off-time, you might catch Joel taking part in Tucson's local comedy scene. Share your story ideas with Joel at joel.foster@kgun9.com, or by connecting on Facebook, Instagram or X.
