TUCSON, Ariz. (KGUN) — A new lifeline has emerged for Tucson’s smallest businesses, offering them a much-needed boost in accessing capital.
The Microbusiness Loan Fund, launched by the Community Investment Corporation (CIC) and Groundswell Capital, provides loans of up to $50,000 for businesses with five or fewer employees.
This initiative is part of a broader effort to address the difficulties small businesses face in securing financial support.
According to a study by the Kauffman Foundation, 83% of entrepreneurs lack the necessary information to access sources of capital.
Caroline Nelson, Chief Operating Officer of CIC, highlighted the gap that this loan fund aims to fill.
"Our financial systems are really set up to focus on larger businesses,” Nelson said. “Your traditional banks are looking for businesses that have two to three years of operating history. It can be really hard to obtain a smaller loan amount."
In addition to loans, the pair of organizations work with entrepreneurs on various aspects of running their business.
“We a lot of businesses in Southern Arizona that need access to capital that they are unable to get,” said Diane Weisbrod. “But we are also able to work with them, not just with capital, but through follow up training and showing them the business skills needed to grow.”
One of the first beneficiaries of this new fund is the Earnest House, a transitional living home in Tucson that supports individuals coming out of incarceration, substance abuse or homelessness.
Co-founded by Danny and Jessica Howe, the project grew out of the couple’s difficult childhoods and experience with incarceration.
"My criminal career started at age nine," Danny shared. "I was on probation until I was 11, got rearrested for something else when I was 15, for guns and drugs when I was 17, and then at 18, I was looking at 68 years for my most serious crime."
After marrying Jessica, Danny realized he needed to make a change and decided to dedicate his life to helping others who faced similar struggles.
“He had to decide and believe in himself that he was worth the change,” Jessica said. “And that he had more to life than he had previously thought.”
When Danny was released from prison, he faced numerous hurdles in finding employment and cleaning up his criminal record.
“We got ‘no’s’ all the time,” Jessica said. “But we would say to ourselves, this ‘no’ is okay because it will lead us to the right yes.”
In trying to piece his life back together, Danny found that the residential programs available were overly strict and didn’t address what he needed, which was to be part of the community and have a safe place to return home to.
Danny and Jessica realized that nothing of that sort existed, so they started it themselves.
The program grew into multiple houses and expanded services, with Danny noting that they have “eliminated a little over 85,000 individual nights of homelessness.”
However, Earnest House has faced significant challenges in maintaining its operations due to a lack of grant funding or government support.
The loan from CIC and Groundswell Capital has been instrumental in keeping the doors of Earnest House open.
"With these funds, we were actually able to get the first and last month’s rent for this new house," Danny said. “We’re also able to service 18 new clients.”
The Microbusiness Loan Fund is part of a $5 million investment from Governor Katie Hobbs’ office to support microbusinesses across Arizona. So far, three Tucson-area businesses have received loans from the program, with more applications in the pipeline.
For entrepreneurs like Danny Howe, this program offers more than just financial assistance—it provides hope and an opportunity to make a meaningful difference in their communities.
“I just started changing my mindset, saying that this is just something I went through and doesn’t define me as a person,” Danny said. “I tell people I’ve swam more times than I’ve been to prison, but I don’t identify myself as a swimmer. I don’t walk around and identify myself as a felon.”
Applications for the Microbusiness Loan Fund are now open, and more information can be found on the CIC website.
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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.
