AZ SB1685

Establishes the microbusiness revolving loan fund program administered by the Arizona Commerce Authority to provide low-interest loans to lending organizations for funding microenterprises unable to access adequate traditional credit.

Eligible lending organizations include community development financial institutions, small business lending consortia, certified development companies, USDA and SBA loan providers, credit unions, and community banks that can analyze applications and monitor loan performance.

Program loans must target minority-owned and women-owned enterprises and can be used for working capital, real property acquisition or improvement, machinery and equipment purchases, and debt refinancing.

Establishes two loan categories: microloans with principal amounts less than $25,000 and regular loans with principal amounts of at least $25,000; fund monies cannot exceed 25 percent of the principal amount unless the authority increases the cap by rule.

Requires the Commerce Authority to study factors for increasing microfinance lenders in Arizona by January 1, 2023, and submit findings and recommendations to the governor and legislature by July 1, 2023.