Financing Options for Arizona Construction Businesses

From the expanding suburbs of Phoenix to public infrastructure projects across Tucson and Flagstaff, Arizona’s construction industry is booming. But growth doesn’t come cheap.

Whether you’re a general contractor, home builder, or specialty subcontractor, access to capital is essential for equipment, payroll, materials, and project bidding. In this guide, we break down the top financing options for Arizona construction businesses, including SBA loans, equipment financing, lines of credit, and alternative funding.

Why Construction Businesses in Arizona Need Capital

The construction industry is cash-flow intensive. Projects often require upfront labor and materials long before final payment is received. Common funding needs include:

• Purchasing or leasing heavy equipment

• Covering payroll and subcontractor costs

• Buying building materials in bulk

• Bidding on large public or private projects

• Securing bonding and insurance

With rising material costs and workforce shortages, strategic financing ensures that Arizona builders can keep projects on time and profitable.

1. SBA Loans for Arizona Construction Companies

SBA loans are government-backed and offer low-interest, long-term financing for eligible businesses, including those in construction.

💼 SBA 7(a) Loan

• Use: Working capital, payroll, refinancing, equipment

• Amount: Up to $5 million

• Terms: 10–25 years depending on use

• Rates: Prime + 2.25%–4.75%

• Best For: Contractors expanding operations or stabilizing cash flow

🏗️ SBA 504 Loan

• Use: Commercial real estate, warehouses, long-term equipment

• Structure: 50% lender + 40% CDC + 10% borrower

• Fixed interest rates and long repayment terms

• Best For: Purchasing facilities or major equipment

🧾 SBA Microloan

• Use: Tools, licensing, marketing, initial supplies

• Amount: Up to $50,000

• Ideal For: Small contractors or new construction firms in Arizona

📍 Arizona SBA District Office: sba.gov/offices/district/az/phoenix

7-Step SBA Loan Application Process

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1. Identify loan type based on your business need

2. Find an Arizona SBA lender or CDC

3. Prepare financials and business documents

4. Submit loan application

5. Undergo underwriting and approval process

6. Review terms and sign agreement

7. Deploy funds for eligible business purposes

2. Equipment Financing for Arizona Contractors

Construction requires a wide range of heavy-duty equipment—from skid steers to cranes to dump trucks.

🔧 Equipment Loan

• Secured by the equipment itself

• Fixed monthly payments

• Section 179 tax benefits for depreciation

• Best for: Long-term assets with extended use

🔄 Equipment Leasing

• Lower upfront cost

• Lease-to-own or operating lease options

• Ideal for short-term projects or fast-changing technology

Top Arizona Equipment Finance Providers:

• Crest Capital

• Wells Fargo Equipment Finance

• Bank of Arizona

3. Business Lines of Credit & Working Capital Loans

💳 Business Line of Credit

• Revolving credit (like a credit card)

• Covers ongoing or unexpected costs

• Ideal for materials, payroll, or gap financing between project payments

• Offered by banks like U.S. Bank, Chase, and BlueVine

💰 Working Capital Loan

• Lump sum repaid over 6–24 months

• Fast approval times (48–72 hours)

• Best for short-term needs or seasonal slowdowns

Tip: Many construction businesses combine a line of credit for flexibility and an SBA loan for long-term needs.

Real Example: Residential Builder in Scottsdale

Business: Canyon Ridge Custom Homes
Need: $450,000 to hire staff, purchase land prep equipment, and improve cash flow
Solution: SBA 7(a) loan from Desert Financial Credit Union + equipment lease from Crest Capital
Results:

• Completed 2 additional homes per quarter

• Increased profit margin by 20%

• Hired 5 full-time crew members

Takeaway: Matching the right funding product to the right need drives growth while minimizing risk.

4. Construction Invoice Factoring

For contractors waiting on delayed payments, invoice factoring provides upfront cash:

• Sell unpaid invoices to a factoring company

• Receive 70–90% of the invoice value upfront

• Ideal for subcontractors working on large projects with net-60+ payment terms

• Providers: altLINE, BlueVine, TCI Business Capital

5. Arizona Construction Grants and Support Programs

While grants are rare in construction, some state and nonprofit programs offer support:

🔨 Arizona Commerce Authority (ACA)

• Offers workforce and expansion incentives

• azcommerce.com

👷‍♂️ Local First Arizona Construction Initiative

• Helps small and minority-owned firms access capital and contracts

• localfirstaz.com

🛠️ SBDC and SCORE Services

• Help with loan readiness, bidding, and certification for public projects

• azsbdc.net

• greaterphoenix.score.org

External Authoritative Links

• Arizona SBA District Office (opens in new tab)

• Arizona Commerce Authority (opens in new tab)

• Local First Arizona Construction Programs (opens in new tab)

• U.S. Chamber Guide to Construction Loans (opens in new tab)

Pros and Cons of Construction Business Financing

Conclusion: Build Your Future with Smart Financing

Arizona’s construction sector shows no signs of slowing down, and contractors who secure reliable funding will be best positioned to win more bids, grow their teams, and maximize profit. Whether you're building custom homes in Gilbert or paving roads in Flagstaff, the right mix of SBA loans, equipment financing, and working capital tools can fuel your success.

Need capital for your Arizona construction business?
Connect with a local lender, apply for an SBA-backed loan, or meet with an SBDC advisor to choose the best financing strategy for your next project.