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.
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.
SBA loans are government-backed and offer low-interest, long-term financing for eligible businesses, including those in construction.
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
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
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
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Identify loan type based on your business need
Find an Arizona SBA lender or CDC
Prepare financials and business documents
Submit loan application
Undergo underwriting and approval process
Review terms and sign agreement
Deploy funds for eligible business purposes
Construction requires a wide range of heavy-duty equipment—from skid steers to cranes to dump trucks.
Secured by the equipment itself
Fixed monthly payments
Section 179 tax benefits for depreciation
Best for: Long-term assets with extended use
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
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
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.
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.
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
While grants are rare in construction, some state and nonprofit programs offer support:
Offers workforce and expansion incentives
Helps small and minority-owned firms access capital and contracts
Help with loan readiness, bidding, and certification for public projects
greaterphoenix.score.org
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 | Cons |
|---|---|
| Access to large capital for equipment and growth | Loans may require collateral and personal guarantees |
| Flexible options (SBA, lines of credit, leasing) | Interest rates vary based on credit and term length |
| Invoice factoring solves cash flow issues fast | May reduce margins if not used strategically |
| State-level programs support local contractors | Grant availability is limited for most for-profit firms |
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.