Expanding Access to Capital: Fueling the Growth of Arizona’s Small Businesses
2024 Winner of We Rise Demo Day, Antoinette Mendez | Mission 2 Transition LLC
At Local First, we’ve always believed that the success of locally owned businesses creates a strong and thriving Arizona economy. But one of the biggest challenges for local entrepreneurs has long been access to capital — especially in Arizona, where community banking resources are limited. That’s why we’ve made it our mission to break down financial barriers and build new pathways for funding that empower business owners to grow, hire and create a lasting impact on Arizona’s communities.
With just 15 Arizona-based community banks and 14 Community Development Financial Institutions (CDFIs) serving 7.2 million people, viable lending options are often out of reach. We saw the gap, and we took action — expanding our business assistance programs, launching new incubators and creating micro-lending opportunities tailored to the needs of local entrepreneurs.
Turning Ideas into Impact
Through our Green Business Micro-Loan funds, We Rise Black Business Accelerator, Fuerza Local Business Accelerator and partnerships with local banks and organizations like Growth Partners AZ, Vitalyst Health Foundation and Community Investment Corporation, Local First is providing small businesses with flexible, character-based lending options. These initiatives don’t just offer funding; they help business owners build credit, establish banking relationships and create long-term financial stability.
Take Social Spin, for example. As a community-focused laundry service, they needed a way to make their operations more sustainable and affordable. Through our Green Loan Fund, founder Christy Moore secured a $25,000 loan to convert delivery vehicles to hybrid, saving $14,058 annually in fuel costs. The laundromat went from a vehicle that burned 18 miles per gallon of gas and needed constant repairs to one that averages 36 miles per gallon.
“The gas bill each month was more than $1,000 alone,” Moore said. “We’re able to pay the loan with just the savings from the gasoline and car maintenance.”
The upgrade didn’t just cut expenses — it allowed Social Spin to process more laundry and increase revenue by $76,000 per year.
Similarly, Brick Road Coffee turned their dream of creating a welcoming gathering space — especially for the LGBTQ+ community — into a thriving business. As active members of Local First since opening their first location in Tempe, owners Gabe Hagen and Jesse Shank built relationships and tapped into classes, events and networking opportunities that helped them achieve profitability and deepen their local roots. Those connections proved invaluable when they were ready to expand, leading to a financing opportunity with Gateway Bank that is now fueling their growth into a second location and a new roastery in Mesa. Their story is a testament to how access to the right community, resources and funding can empower small businesses to scale sustainably.
Creating Culturally Responsive Lending Solutions
The Rooted Relative Fund Advisory Council
Indigenous entrepreneurs have faced significant barriers to securing capital because of systemic limitations in traditional financial institutions. That’s where the Rooted Relative Fund comes in. Through a partnership with Rural Community Assistance Corporation, Local First Arizona provides relationship-based loans that honor Indigenous ancestral ways while addressing today’s economic challenges.
These loans, ranging from $30,000 to $250,000 at 3% interest for up to five years, are designed for Indigenous business owners, including non-enrolled members, who are rooted in and serve their communities. With this culturally responsive approach, Indigenous entrepreneurs have more opportunities to access the resources they need to strengthen their businesses while preserving their traditions.
Closing the Racial Wealth Gap Through Entrepreneurship
For Black entrepreneurs, the struggle to secure funding is even more pronounced. Nationally, just 6% of Black business owners receive the capital they seek, making it difficult to build and scale their ventures. Local First’s We Rise program aims to shift those odds. With over 100 graduates since its launch, We Rise participants are seeing a 36% loan approval rate — far exceeding the national average.
Beyond funding, We Rise also provides entrepreneurs with opportunities to showcase their businesses and gain critical financial support. At our 2024 We Rise Demo Day, Antoinette Mendez, founder of education consultancy Mission 2 Transition, won a $10,000 grand prize. Her company, which helps first-generation college students secure scholarships and navigate the enrollment process, also received a special grant from Arizona Financial Credit Union in honor of late board member Kelvin Smith. The event also awarded $5,000 to Jamila Graham of NDUR Athletics and $2,500 to Jessica Baker of Pink Sky Photo Booth, giving these entrepreneurs vital capital to take their businesses to the next level.
Expanding Local Investment in the Year Ahead
As the need for locally driven funding solutions continues to rise, Local First is doubling down on its commitment to breaking financial barriers and expanding opportunities for entrepreneurs. Several Green Loan Funds have been approved for 2025, with the first one of the year going to Vishal Gas Station in Ehrenberg, AZ to fund a solar conversion project that will offset 100% of the station’s energy usage. Also in process: another green loan for Social Spin allowing the replacement of their remaining gas-powered van with a fully electric vehicle, furthering their commitment to sustainable operations and lower operating costs.
Meanwhile, we just wrapped up the first application round for the Southwest Regional Food Business Center (SWRFBC) Business Builder Awards, with 34 proposals submitted for post-harvest infrastructure projects. While the Center’s USDA-provided funding is currently frozen and under federal review, upon reinstatement the winning project will receive up to $100,000 in funding to strengthen regional food supply chains.
On top of that, Local First recently secured a grant through Intuit to provide 45 small businesses with $1,000 energy rebates, helping them invest in efficiency upgrades that lower costs and reduce environmental impact. Applications are being completed now, with project implementation running through May.
Building Relationships That Strengthen Communities
We know that access to capital isn’t just about loans — it’s about relationships. That’s why we’re excited to bring back our annual Move Your Money events this April, helping connect business owners with mission-aligned banks and credit unions. This year’s events will take place in Flagstaff on April 23, Tucson on April 29 and Phoenix on April 30. Tucson and Flagstaff will feature Beers and Banking gatherings, while Phoenix’s event at Hello Lincoln will bring together 15 local financial institutions to network and share resources.
Every step we take brings us closer to an Arizona where all entrepreneurs — regardless of background — have the tools, knowledge and capital they need to thrive. Through targeted funding initiatives, strategic partnerships and community-driven programs, we’re proving that access to capital isn’t just a possibility — it’s a reality we’re building together.
Related Information:
Learn about Local First’s Tribal Community Connections initiatives and opportunities
Visit our “Move Your Money” hub to discover the impact of banking locally and find a community bank near you
Read about Local First’s We Rise mentoring program for Black entrepreneurs
Check out Local First’s Green and Small Business micro-loans