ARIZONA · NAICS 31-33
Arizona manufacturing projects run across the north Phoenix semiconductor cluster and the broader Maricopa supplier base feeding TSMC's announced $165 billion buildout. Studies translate capacity, throughput, contract concentration, and labor models into projections, and reconcile real estate and equipment structures against coverage with fiscal 2026's strongest program economics on top.
FEASIBILITY TRIGGER
Fiscal 2026 gives manufacturers the strongest program economics, with 7(a) fees waived on loans up to $950,000, 504 fees waived entirely, and a $5.5 million debenture.
Arizona generated 1,212 SBA-disbursed manufacturing loans between FY2010 and FY2026, worth $810.9 million in approved 7(a) and 504 financing at an average of $669,000 per deal. Ranked #16 of 38 states for manufacturing SBA volume, the state captures 2.1% of national manufacturing dollars. 85.4% of the loans ran through 7(a) with 504 covering the remainder; 147 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 1,212 |
| Approved volume | $810.9 million |
| Average loan size | $669,000 |
| 7(a) share | 85.4% |
| Approvals since FY2024 | 147 |
| State rank by loan count | #16 of 38 |
Among the 939 seasoned loans in this segment (approvals FY2010–FY2021), 7.8% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for manufacturing is 6.6%, against 7.3% across all industries. That performance runs above the national benchmark for this asset class, which is a factor lenders weigh in their credit decision.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 7.8% adverse-resolution rate against the national manufacturing benchmark of 6.6% tells credit committees to scrutinize revenue projections and coverage assumptions closely on Arizona deals in this class. A rigorous third-party feasibility study — built on documented demand, defensible pricing, and stressed coverage — carries meaningful weight in that underwriting conversation, particularly at an average loan size of $669,000 across 1,212 loans.
Every Arizona manufacturing project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
Arizona projects most often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, which is decisive in a state where Sun Belt growth has pushed land and improvement costs higher each cycle. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
TSMC's announced $165 billion Phoenix buildout, the largest single foreign direct investment in U.S. history with 6,000 projected fab jobs and 40,000 construction jobs, anchors a metro already counting more than 140,000 semiconductor-relevant jobs, and supplier projections built on that order book are exactly what the SOP expects an independent study to test.
For a national view of this asset class, see our manufacturing SBA feasibility overview, and read our related analysis in the manufacturing lending research on our blog.
Compare neighboring markets: California, Texas.
Public SBA and CDC program records, cited as program evidence
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Advanced manufacturing facility, national program evidence
Round Rock, Williamson County, Texas
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