A new nonprofit lender in Arizona is aiming to fill a financing gap that often prevents lower-income and credit-challenged homeowners from making essential home repairs and upgrades. Sustainable Home Improvement Loans of Arizona, or SHILA, launched in 2024 with a mission to make home improvement financing more affordable and accessible.

Founded by Ty Lorts, SHILA began with $500,000 in initial funding from the Maricopa County Industrial Development Authority. 

Typically, homeowners needing a loan for a major project like a new roof or air conditioner have been forced to apply to their bank or through their contractor.

But bank and contractor-arranged financing can come with high interest rates and strict requirements to qualify, leaving many homeowners with no options.

Loans That Are More Affordable And Easier To Apply

Now SHILA is opening the door to more homeowners. The nonprofit does not require a minimum credit score and charges only a small, one time project management fee and no origination or large dealer fees for its loans.

Instead, it evaluates applicants based on their income, recent payment history, and overall ability to repay. Loans range from $3,000 to $50,000 and are offered at fixed interest rates between 5% and 12%, with repayment terms from three to 10 years.

Compare that to personal bank loans that often require credit scores above 640 and carry interest rates as high as 21%. Similarly, contractor-arranged financing can burden borrowers with even higher interest rates (as much as 29.9%) and large hidden dealer fees.

It’s easy to see how many homeowners needing a lender have been left in the lurch.

“No one should go without A/C in the summer, live with a damaged roof or sacrifice safety, accessibility and energy-efficiency upgrades because they can’t qualify for financing,” said SHILA CEO Ty Lorts. “Our goal is to make critical home improvements accessible to everyone, regardless of income or credit history. We’re here to serve.”

The application process can be completed online, with approval times as fast as 48 hours. 

Military veterans, women head of households and seniors may qualify for fee discounts.

Extreme Heat Drives Greater Need For Home Improvements

SHILA’s lending model could have significant implications in Arizona, where roughly 40% of the housing stock was built before 1980. 

Older homes are more likely to suffer from outdated insulation, aging plumbing, and inefficient heating and cooling systems — all of which contribute to higher utility costs. As the state continues to experience extreme heat, the demand for energy-efficient upgrades is rising.

According to industry analysts, Arizona’s home renovation spending is expected to increase by 10% in 2025. Common projects include replacing HVAC systems, updating roofing and plumbing, installing energy-efficient windows, and making accessibility improvements such as ramps, grab bars and walk-in showers.

For many homeowners, however, the cost of these upgrades is a barrier. 

A new HVAC system, for example, can cost  $8,000 or more, while a full insulation retrofit might run several thousand dollars depending on the home’s size.

“With SHILA, we’ve removed the biggest obstacles homeowners face, including credit barriers, upfront costs, and confusing loan terms,” Lorts said. “Our loans are simple, easy to understand and affordable.”

Creating More Jobs For Local Contractors

SHILA’s model also appeals to contractors. 

Jobs often fall through if a customer cannot pay. Working with SHILA means contractors can do more business and receive guaranteed payment once a project is approved, with no merchant or dealer fees.

Brenda Ruiz, owner of Delta Home Services, recently worked with SHILA to help a customer finance a new HVAC unit and ductwork. The family-owned company has been operating across the Valley for 23 years. Ruiz learned of SHILA through the Arizona Registrar of Contractors.

Ruiz sometimes encounters customers who have enough income to cover monthly loan payments but lower-than-average credit, which disqualifies them from a personal bank loan, Ruiz said. This barrier can derail important home projects.

“When we have somebody who can not go through traditional financing, I send them over to SHILA, and they help them out,” Ruiz said. “It means more business for us and we can help out the community as well.”

In total, SHILA plans to finance more than $5 million in residential repair and upgrade projects within its first three years.

SHILA is currently accepting applications from both homeowners and contractors. More information is available at shilaaz.org.