HB 2732 Summary

• Establishes a micro-business loan fund administered by the Department of Insurance and Financial Institutions to provide low-interest loans to community development financial institutions that lend to micro-businesses in Arizona.

• Requires community development financial institutions to demonstrate expertise in micro-business lending, knowledge of creditworthiness assessment, loan monitoring systems, and understanding of economic development impact in Arizona.

• Permits micro-loans under $25,000 to be used for business operations, working capital, real property acquisition or improvement, machinery and equipment purchases, and debt refinancing.

• Limits fund contribution to no more than 25 percent of a loan's principal amount, waives all fees for loans under $5,000, and requires the department to market the program to minority-owned and woman-owned businesses lacking access to traditional funding.

• Appropriates $10,000,000 from the state general fund for fiscal year 2023-2024 and requires the department to report by February 1, 2024 on the need for additional microfinance lenders in Arizona.