Small Business Hiring and Retention Funding

The State of Arizona has launched the Back to Work Small Business Hiring and Retention Program.

This $5 million program is designed to assist small, locally owned or operated businesses hire and retain employees; the program also has a special focus on businesses that have been affected by the recent wildfires and flooding.

Businesses who apply may receive up to $10,000 in grant funding for items like employee hiring/signing bonuses, relocation bonuses for employees that are moving to take an open position, and employee retention bonuses.

Who is eligible?

This funding is available to businesses that are owned and operated in the state of Arizona. Businesses must have between 5 and 25 employees (exemptions are made for businesses impacted by the wildfires and floods, see below) and have been fully incorporated before January 1, 2020. Eligible businesses also must be either renting or leasing a physical location.

How can I use the funds?

These funds are grant monies, meaning you don’t need to pay them back. The program will fund up to $10,000 but there is a cap at $1,000 per employee. Employees who received incentives can not include the business owner. 25 percent of the awarded amount may be utilized for other business expenses such as rent and utility costs and businesses must submit a plan for how the funds will be used.

Special Considerations for Businesses Impacted by Wildfire and Flood

If your business has been affected by recent wildfires and flooding then you may use up to 100 percent of the awarded funding for non-personnel spending such as rent, rebuilding, and utilities. Your business may also have up to 50 employees.

These grants will be awarded on a first-come, first-serve basis as well as undergo a peer-review process. Once you are awarded, you must distribute the funds within three months. You can find more information in the press release from the Governor's Office and on the Arizona Commerce Authority website.