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Trever Fleetham, AICP   

Economic Development & Planning Manager

 

303 N. Beeline Highway       

Payson, AZ 85541
 

Office: (928) 472-5046

Cell: (928) 978-9584
Email:​
econdev@paysonaz.gov

Our mission is to maximize the region's economic prosperity and position the Greater Payson Area as a state leader in education, workforce, and light industry.

Financing Your Startup

Entrepreneurs are fueled with an independent spirit and that’s true when it comes to financing their ventures too. Approximately 70 percent of small businesses are initially funded from the owner’s pockets or through small loans agreements with family and friends. This method of bootstrapping enables you to use whatever seed money and resources are on hand to quickly get your business started.

 

Sources of Financing for Startups
There are a limited number of options for financing your start-up venture. Here are a few.

Local Banks and Credit Unions
Keep in mind that most commercial lenders are less likely to loan to startup businesses. However, be sure to check with your local bank or credit union. Once your business has a proven track record (in operation for two or more years), you may be eligible for a loan.

 

Community Development Organizations
There are a limited number of local community development organizations that work with startup businesses.

  • The small Business Development Center (SBDC’s) located at Gila Community college in Payson are partially funded by the U.S. Small Business Administration under cooperative agreement # 2-6903001-Q-00063-10. http://www.gilaccc.org/SBDC.html

     

Gila County Industrial Development Authority (IDA)

Program Description http://www.gilacountyida.com/
The Revolving Loan Fund (RLF) is a loan fund designed to create economic activity by providing greater access to capital for main street everyday small businesses. The program is targeted to small businesses that have had difficulty accessing regular credit markets.

By focusing efforts on making sure businesses can succeed, the GCIDA doesn't just lend money upon request. They confirm that businesses are ready to accept the money and use it for growth and additional revenue creation, not just allowing it to become another debt. The goal is to help businesses to grow by nurturing them and helping them realistically plan for the future.

The GCIDA encourages the business owners to attend business training to assure that the fledgling businesses that borrow money have the skills needed to succeed.

RLFs have been responsible for helping save a number of existing businesses and start up others. Without the RLF programs, a number of rural businesses would have closed their doors and a number of others would never have found the funding to begin and succeed.

 

Area of Operation
Gila County

 

Types of financing
The type of financing is fixed asset financing. The interest rate will be set by the Revolving Loan Fund Advisory Board.

The minimum loan amount is $20,000 per individual business (smaller loans will be considered on a case by case basis).

Eligibility Requirements

  1. Provide proof that the business or building is located and has a permanent physical address in the project area.

  2. Provide proof of collateral. Assets used as collateral may include cash, land, buildings, or equipment. Proof of hazard insurance in sufficient amount to protect the collateralized asset may be required.

  3. Provide proof of equity interest in business or building.

  4. Provide a business plan.

  5. Demonstrate one full-time job will be created or retained for every $10,000 borrowed from the Revolving Loan Fund.

Application Process

  1. Completed and signed application including: o Loan Request Worksheet o Personal Financial Statements o Credit Authorization Form o Tax Returns (two fiscal years) o Disclosure Statement(s) o Balance Sheet, Profit & Loss Statement (AP & AR for current 90 day period) o Business lease/deed

  2. Current three year business plan and management resumes

  3. Current eighteen month financial projections (including P & L, cash flow, owner compensation)

  4. Personal credit report (as appropriate)

  5. Three business references

  6. Copy of collateral offered and current market value (title, deed, security paper, etc.)

  7. Statement indicating what the loan will be used for

Uses

  • Building and land acquisition

  • Leasehold and site improvements

  • New construction

  • Rehabilitation costs

  • Purchase of fixtures, machinery, and equipment and associated installation costs

  • Start-up or operational costs

 This institution is an equal opportunity provider, and employer.

The RLF program does carry some government restrictions. Please call (928) 473-1129 for any questions about the Revolving Loan Fund.

 

Arizona Commerce Authority

Help you start your new business.  http://www.azcommerce.com/start-up