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City to partner with Local First Arizona on $50,000 revolving microloan pilot for small businesses
Summary
Staff proposed a $50,000 partnership with Local First Arizona to create a local revolving microloan fund for Sierra Vista small businesses, using leftover business-attraction funds and program design modeled on a successful Safford program.
City staff proposed a memorandum of understanding with Local First Arizona and a $50,000 allocation (drawn from leftover business-attraction funds) to seed a local revolving microloan program for small businesses. Staff said the allocation is not an additional appropriation to the current fiscal-year budget but a redirection of unspent economic-development funds.
Armando Curio, business-lending strategist with Local First Arizona, described the program model: Local First provides program design and technical assistance while partnering institutions or service providers (Community Investment Corporation in the example) originate/ service loans. Curio said a similar program in Safford has driven small-business growth and helped borrowers reach the point where they qualify for traditional lending.
Council asked whether the $50,000 would go to microloans versus nonprofit overhead; Local First said the funds are earmarked for the microloan program and that servicing partners collect interest on loans to sustain operations. Staff said this use would effectively double the microloan capital available for Sierra Vista businesses near-term.
