AZ HB2709

Amends section 41-1545.02 of Arizona Revised Statutes regarding grants from the Arizona Competes Fund.

Establishes that 15% of annual fund appropriations (minus grants already awarded) are reserved for rural business grants, separate from the existing 15% reserved for microenterprises and small businesses.

Changes the microenterprise grant cap from 30% of reserved funds or $1,000,000 (whichever is less) to a flat $1,000,000 amount.

Maintains existing requirements that at least 25% of annual appropriations support businesses in counties with populations under 2 million or on tribal lands, with priority given to border counties, counties with military facilities, and tribal lands.

Clarifies that unreserved rural business grant funds may be reallocated to other eligible businesses if not awarded within nine months of the fiscal year.