HB 2732
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
HB 2732: micro-business loans; report; appropriation
Sponsor: Representative Blattman, LD 9
Committee on Commerce
Overview
An emergency measure that creates the Micro-Business Loan Fund (Fund) which provides low-
interest loans to community development financial institutions (Financial Institutions) that provide
loans to Arizona micro-businesses. Appropriates $10,000,000 in FY 2024 to the Fund.
Provisions
1. Establishes the Fund consisting of continuously appropriated legislative appropriations. (Sec.
1)
2. Stipulates Fund monies are to be used to provide low-interest loans to Financial Institutions
that provide loans to micro-businesses. (Sec. 1)
3. Defines micro-business as a business that is located in this state, that is independently owned
and operated and that employs five or fewer people. (Sec. 1)
4. Instructs DIFI to administer the Fund and lend available monies to Financial Institutions. (Sec.
1)
5. Outlines the criteria the Financial Institutions must fulfill to qualify for a disbursement from the
fund. (Sec. 1)
6. Specifies the micro-business loans may be used for:
a) Operations, creations and job retention;
b) Working capital;
c) Acquisition or improvement of real property;
d) Acquisition of machinery and equipment; and
e) Refinancing of debt obligations. (Sec. 1)
7. Instructs DIFI to market and advertise the Fund to minority-owned and woman-owned
businesses that are unable to access traditional funding sources. (Sec. 1)
8. Permits the Financial Institutions to disburse a micro-loan or regular loan that must not exceed
a principal amount of $25,000. (Sec. 1)
9. Mandates the Financial Institutions to certify with DIFI that the loan to a micro-business
complies with the Fund requirements. (Sec. 1)
10. Specifies the Fund amount used by the Financial Institutions cannot exceed 25% of the
principal amount of the loan and allows DIFI to set rules to increase the cap of the loan. (Sec.
1)
11. Permits the Financial Institutions to charge an application, commitment and loan guarantee
fee that is created by the Financial Institution's management. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☒ Emergency (40 votes) ☐ Fiscal Note HB 2732
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12. Stipulates all fees that the Financial Institution charges are waived for micro-loans that are
less than $5,000
13. Requires DIFI, within six months after the establishment Fund, to evaluate and examine if
there is a need to increase, and how to increase, the number of microfinance lenders in
Arizona. (Sec. 1)
14. Instructs DIFI, by February 1, 2024, to submit a report of its findings and recommendations to
the Governor, President of the Senate, Speaker of the House of Representatives and provide
a copy to the Secretary of State. (Sec. 1)
15. Appropriates $10,000,000 from the state General Fund in FY 2024 to the Fund. (Sec. 2)
16. Cites this act as the "Support Micro-businesses Act". (Sec. 3)
17. Contains an emergency clause. (Sec. 4)