AZ SB1702

Establishes a microbusiness revolving loan fund program administered by the Arizona Commerce Authority, funded through legislative appropriations.

Authorizes the authority to provide low-interest loans to community development financial institutions and eligible lending organizations (small business consortia, certified development companies, USDA and SBA loan providers, credit unions, and community banks) to fund microbusinesses unable to obtain adequate credit.

Defines microbusinesses as Arizona-resident, independently owned and operated businesses with 15 or fewer employees; loan funds may be used for working capital, real property acquisition or improvement, machinery and equipment, and debt refinancing.

Establishes microloans with principal amounts less than $25,000 and regular loans with principal amounts of at least $25,000, with fund monies capped at 25 percent of the loan principal amount (authority may raise this cap by rule).

Requires the Commerce Authority to study factors for increasing microfinance lenders in Arizona by January 1, 2025, and submit findings and recommendations to the governor and legislature by July 1, 2025.