| Loan Program | |
|---|---|
| SBA Guaranteed Loans | Eligible projects are business real estate, inventory purchases, machinery and equipment, leasehold improvements, working capital, and, in some circumstances, debt consolidation. SBA loans are a special form of financing backed by the United States Government to help small businesses obtain the funding they need for permanent or seasonal working capital, accounts payable, inventory, leasehold improvements, machinery, equipment, the purchase of real estate, building renovation, construction, and more. SBA funds can also be used to start up a new business or to acquire or expand an existing business. Because SBA loans must be written to government standards, businesses must qualify to receive financing under their programs. SBA borrowers must be for-profit and meet the established size standards, and there are some types of businesses that will not qualify for SBA financing. If you have a new company, or you’re expanding an existing one, if you don’t have sufficient collateral to get your business in shape, or you can’t meet traditional lending criteria for some other reason, your bank can work with you to explore your options for SBA financing. SBA 7(a) Term Loans: This loan program can help companies that are just beginning operations, that are expanding their existing operations, or that don’t meet traditional lending criteria for other reasons. Loan amounts can be as high as $2 million, with terms as long as 25 years, if the loan is for real estate. SBAExpress Loans: These programs, technically part of the SBA 7(a) program, offer a streamlined application and closing process and are approved by bank loan officers without having to go through the extra step of an SBA review. In addition, the SBA allows for unsecured loans under these programs, with dollar limitations that vary by program. Three types of loans are included in this program, each with different loan limits:
SBA 504 Term Loans: This is a long-term loan to help businesses obtain funds for land, buildings, machinery, and equipment with a minimum useful life of 10 years. In general, the bank funds 50% of a project, the SBA, through a Certified Development Company, funds an additional 40%, and the borrower provides a 10% equity contribution (this requirement can be higher with special-purpose properties or start-up companies). The SBA offers variable- or fixed-rate options and a maximum 20-year term. Contact Information: U.S. Small Business Administration |
| Business and Industry Guaranteed Loans | Applicant may be an individual, partnership, LLC, for-profit or non-profit corporation, cooperative, or Alaska Native entity. The project must be in a rural area or city of less than 50,000 population. Loan guarantees of up to 90% of the loan amount. Loans may be up to $25,000,000. Loans can be used for financing business construction, conversion, and modernization as well as for equipment, facilities, machinery, supplies, debt restructure, transfer of ownership, and working capital. Projects which create or save jobs have the highest priority. The borrower works with a lender, then the borrower and lender jointly apply for a loan guarantee. There is a one-time loan guarantee fee of 1% or 2% and an annual servicing fee (currently 0.25%). Contact Information Rural Development Banks and credit unions have partnered with USDA to offer loans for businesses located in communities outside the Municipality of Anchorage. The loans are guaranteed by the USDA and can be secured with accounts receivable, inventory, equipment, furniture and fixtures, or real estate. The purpose of USDA loans is to create and maintain employment and improve the economic climate in rural communities. |
| Rural Energy for America Program (REAP) | Provides grants and guaranteed loans to install renewable energy systems and/or undertake energy efficiency improvements to agricultural producers and small businesses in rural areas or city of less than 50,000 population. Grants can meet equity requirements concurrent with loan guarantee and must demonstrate financial need. Grants can be up to 25% of total project ($2,500 minimum to $500,000 maximum). Available for wind, solar, biomass, geothermal, hydroelectric, ocean and energy efficiency projects. Loan guarantees of up to 85% of loan amount. Contact Information Rural Development Banks and credit unions have partnered with USDA to offer loans for businesses located in communities outside the Municipality of Anchorage. The loans are guaranteed by the USDA and can be secured with accounts receivable, inventory, equipment, furniture and fixtures, or real estate. The purpose of USDA loans is to create and maintain employment and improve the economic climate in rural communities. |
| Alaska Industrial Development and Export Authority (AIDEA) Loan Participation Program | Banks and credit unions have partnered with AIDEA to offer loans for businesses located in the state of Alaska. The loans can be guaranteed or participated, and can be secured with accounts receivable, inventory, equipment, or real estate. The purpose of AIDEA is to promote the general prosperity and economic welfare of the people of Alaska and to create additional employment opportunities. Financially feasible business projects that are located in Alaska or Alaska businesses exporting goods and services to foreign countries qualify. Alaskan individual residents must hold majority ownership of the Alaska business. Note: Except for the Development Finance Program, the request for financing assistance must come from a financial institution.The Loan Participation Program provides long-term financing to Alaska businesses for new or existing projects, or for the refinancing of existing loans. The Loan Participation Program has been highly successful since its inception in the early 1980’s. This program has helped diversify the Alaskan economy by providing financing for a large variety of commercial facilities ranging from office buildings, warehouses and retail establishments to hotels, fishing vessels and manufacturing facilities. AIDEA is not a direct lender, but through the Loan Participation Program, AIDEA purchases a portion of a loan that is sponsored and originated by an eligible financial institution. In most cases the interest rate on the AIDEA portion of the loan is slightly lower than the rate on the bank’s portion. The term of the AIDEA portion of the loan can also exceed the term of the bank portion. This can result in lower scheduled payments for the borrower. AIDEA provides fully amortizing, long term financing. (Up to 15 years for personal property or 25 years for real property; the maximum loan-to-value is 75%.)
The first step is to contact one of AIDEA’s eligible financial institutions, so talk with your bank or credit union or one of the Alaska loan providers listed under Other Alaska Loan Programs. Contact Information Alaska Industrial Development and Export Authority (AIDEA)
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| Indian Loan Guaranty Program | For-profit and non-profit enterprises at least 51% owned and operated by Alaska Natives, American Indians, ANCSA corporations, and tribal entities recognized by federal statutes are eligible. Must actively operate the business on a day-to-day basis and invest 20% of its own resources in it. Applicant must furnish information on the number of jobs to be created and/or sustained and the number of jobs for Native Americans as well as secure a commitment for financing from a bank. Loan guarantees of up to $500,000 for individual Natives, and the program can guarantee loans of greater amounts for tribes, tribal enterprises, and ANCSA corporations. 80% and 90% guarantees are offered on commercial bank loans. Contact Information Office of Indian Energy and Economic Development U.S. Department of the Interior |
| Small Business Economic Development Revolving Loan Fund | Long term loans of up to $300,000 for 5 to 20 years in eligible areas to businesses not able to obtain private financing for the entire project. Financing for the start-up and expansion of businesses that will create significant long-term employment. Contact Information Division of Economic Development |
| Rural Development Initiative Fund | Providing loans for working capital, equipment, construction or other commercial purposes to businesses located in a community with a population of 5,000 or less that will create or retain jobs in the community. Loan amounts to $150,000 to one person businesses or up to $300,000 for two or more person businesses. Maximum term is 25 years. Contact Information Division of Economic Development |
| Commercial Fishing Revolving Loan Fund | Providing long-term, low interest loans to promote the development of predominantly resident fisheries, and continued maintenance of commercial fishing vessels and gear for the purpose of improving the quality of Alaska seafood products. Loan Programs:
Contact Information Division of Economic Development |
| Alaska Capstone Avionics Loan Program | Providing long-term, low interest loans for purchase and installation of Capstone avionics equipment for aircraft that operate substantially in Alaska. Find Out More… Contact Information Division of Economic Development |
| Multi-Family Loan Programs | Loans for multi-family properties of five or more units and special needs housing. Find out more… Contact Information Alaska Housing Finance Corporation |
| Assistance Provider Interest Rate Reduction Program | A loan program for housing that is occupied by a live-in care provider, who provides assistance in activities of daily living for individuals with either a physical or mental disability (the “Occupants”). The loan may be for the acquisition, acquisition with rehabilitation and/or improvement of an existing property, or long-term financing of a construction loan for new housing with at least two occupants residing in the housing. The interest rate is adjusted based on the number of occupants residing in the housing. Contact Information Alaska Housing Finance Corporation |
| Agricultural Revolving Loan Fund Program | The objective of the Agricultural Revolving Loan Fund is to promote the development of agriculture as an industry throughout the State by means of moderate interest rate loans. Find out more… Contact Information State of Alaska Division of Agriculture |
| Alaska Growth Capital | Alaska Growth Capital provides financing for all business needs including construction lending, working capital facilities, equipment purchases and leasehold improvements. They also participate in the SBA and USDA loan guarantee programs. Loans range from $100,000 to $10,000,000 and normally have terms from 3 to 25 years. Interest rates depend on the risk level of the business and each financing package is customized to meet the needs of the business. Alaska Growth Capital also delivers financial consulting in limited circumstances. Alaska Growth Capital can finance any business within the state, but focuses on businesses that are expanding Alaska’s economy. The primary criteria for consideration includes the following: – Dedicated and experienced management – Past performance – Current economic viability of the business – Competitive advantages Contact Information Alaska Growth Capital |
| Evergreen Business Capital | The SBA 504 loan serves healthy, growing small to mid-sized businesses. It is available to individual business owners or multiple owners partnering on a project. To qualify, a business must be a for-profit enterprise, occupy 51% of an existing building or 60% of a newly constructed building and meet a least one goal around job creation, public policy, or community development through the project. Evergreen is a private, nonprofit organization authorized by the U.S. Small Business Administration as a Certified Development Company. It serves as an intermediary for the SBA 504 Loan Program. SBA 504 loans offer a low-down-payment, long-term, low-interest-rate solution for the purchase of commercial real estate and equipment. Business owners can use 504 loans for land and building purchases, new construction or renovation, leasehold improvements and purchases of heavy machinery, equipment and commercial vessels. They can also be used for soft costs such as title searches, attorney’s fees, appraisals, etc. By partnering with lenders to provide partial funding, Evergreen reduces their risk. Contact Information Evergreen Business Capital |
| Alaska Commercial Fishing and Agriculture Bank | CFAB’s authority and mission is to provide financing to Alaskan residents involved in commercial fishing, agriculture, tourism, and other resource-based industries in Alaska. The Alaska Commercial Fishing and Agriculture Bank was established as a private member owned cooperative by a special Alaska statute, and began operations in 1980. Borrowers have the opportunity to participate in CFAB’s annual financial results through a partial refund of interest paid. CFAB is controlled by a Board of Directors whose members are elected by and from among its stockholders. Contact Information Alaska Commercial Fishing and Agriculture Bank |
| Southeast Alaska Revolving Loan Fund | If you have a project that will create or retain jobs in Southeast Alaska, Juneau Economic Development Council could be the lender you’ve been looking for.We are a non-profit financial institution created to fund development in Southeast Alaska.It is often very difficult for new businesses and businesses in depressed industries to get the financing they need to get started and so Juneau Economic Development Council launched the Southeast Alaska Revolving Loan Fund in 1997 to bridge the gap between what banks will finance and what the business community needs. Our goal is to provide financing for viable projects that will create and retain quality jobs and help to diversify local economies in Southeast Alaska. JEDC operates several community-based loan funds and one region wide loan program that serves smaller communities throughout Southeast Alaska. Our total loan capital is about $4 million with about half that for projects in Juneau. We fill the gap between entrepreneurial and bank financing.JEDC offers direct loans at a fixed rate and with terms that can be structured to fit a new business’ cash flow. JEDC stretches its loan funds by lending cooperatively with commercial banks and other public loan programs to maximize available financing and arrange the overall best terms for its borrowers. JEDC can take a junior lien position in collateral provided there is sufficient collateral overall to secure its loans and the business’ projected cash flow will support repayment in 3-5 years. We provide hands-on assistance.JEDC provides ongoing technical assistance to businesses in areas such as financial planning, marketing and operations. This means that start-ups have the best possible chance to survive, grow and succeed. Financing criteria.JEDC seeks to work with healthy companies that have excellent potential for growth, will provide increased employment in Southeast Alaska, and will help diversify our economy. The primary criteria we consider are the following:
Applications and other forms necessary for loans and other business services can be found at https://www.jedc.org/business. Contact Information Brian Holst, Executive Director |
| YWCA Anchorage Women’s Business Solutions | Women’s Business Solutions provides micro-loans up to $10,000 to credit worthy women for business start-up or expansion. Find out more… Contact Information YWCA Anchorage Women’s Business Solutions |
| USDA Farm Service Agency | Farmers, including shell fish farmers, who have substantially participated in a farming operation for at least three but no more than ten years are eligible. Woman and minority-owned agricultural business may qualify for beginning farmer or socially disadvantaged targeted loan funds with the Farm Service Agency. The USDA/Farm Service Agency makes both direct and guaranteed farm ownership and operating loans to family-size farmers and ranchers who cannot obtain financing from commercial credit sources. FSA loans can be used to purchase land, livestock, equipment, feed, seed and supplies. The loans can also be used to construct buildings or make farm improvements. Farms financed include shell fish farms. Contact Information Alaska State Farm Service Agency |
| Fisheries Finance Program | The Fisheries Finance Program (FFP) provides long-term financing or refinancing of the cost of purchase, construction or reconstruction of fishing vessels, shoreside facilities, aquaculture and mariculture facilities and acquisition of vessel or facility equipment. Vessel loans must be capacity neutral. The FFP also provides loans for upgrades to improve collection and reporting of fisheries data, to reduce bycatch, to improve selectivity or reduce adverse impacts of fishing gear, or to improve safety. The loan amount cannot exceed 80% of the eligible project cost. Loans are long-term, fixed rate with interest rates 2% over the U.S. Treasury’s cost of funds. Applicant must be a U.S. citizen with a good earnings record, net worth and liquidity. The applicant must have at least a 3-year history of owning or operating the fishing project or operating a comparable project. Contact Information NOAA Financial Services Branch, NW Region |
| Halibut Sablefish Quota Share Loan Program (HSQS) | The HSQS program provides long-term loans to individual fishermen for the purchase or refinancing of Alaska Halibut and Sablefish Quota Shares (IFQ). The loan amount cannot exceed 80% of the purchase price. Loans are long-term, fixed rate with interest rates 2% over the U.S. Treasury’s cost of funds. Loan maturities are up to 25 years. Loans cannot extend a borrower beyond 50,000 lbs. of quota shares. Applicant must be a U.S. citizen with a good earnings record, net worth and liquidity. The applicant must have or be able to obtain a Transfer Eligibility Certificate (TEC), cannot own more than 50,000 lbs. of quota shares and cannot own a vessel larger than 60 feet LOA. Contact Information NOAA Financial Services Branch, NW Region |
| Federal Business Grant and Service Industry Assistance | Eligible companies can receive between $22,500 and $75,000 in Federal Business Grant Funds from the U.S. Department of Commerce to help the company mitigate the injury imports of like or similar products are causing to their bottom line. NWTAAC Project Managers will work with the company’s management team to develop and submit to the Department of Commerce a strategic plan. Once approved, the company can begin implementation of project(s) that will strengthen its competitive position. Eligible business include any U. S. manufacturing, agriculture, service or seafood operation experiencing injury from imports, as well as firms who service companies that have lost customers due to outsourcing or imports. Applicant companies must have been in business for at least 2 years. Applicant’s sales, production, or employment must be declining due, in part, to competition from imports. Contact Information 1200 Westlake Avenue North, Suite 802 |
| Alaska Pacific Bank | Loan application available on-line: www.alaskapacificbank.com 301 North Franklin 2094 Jordan Avenue 315 Lincoln St., Suite 206 410 Mission Street 2442 Tongass Avenue
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| Alaska USA Federal Credit Union | Loan application available on-line: 8181 Glacier Highway Account Questions Call: 3033 Vintage Blvd 631 W. Willoughby Suite 101 2417 Tongass Avenue Suite A Micro-Branch |
| First Bank Alaska | Loan application available on-line:
PO Box 7920
2503 Tongass Ave. Third & Main Streets 224 Brueger 103 North Nordic Dr 203 Lake Street 3075 Vintage Park Blvd 605 W. Willoughby Ave. First Bank Financial Center – Commercial Loan Center |
| First National Bank of Alaska | Loan application available on-line: www.fnbalaska.com 840 W. 10th Street Account Questions Call: 238 Front Street 215 Main Street 8990 Glacier Hwy. 318 Lincoln Street |
| KeyBank Alaska | Loan application available on-line: www.key.com 234 Seward Street New Account Questions Call: 8800 Glacier Highway 2501 Tongass Avenue |
| Wells Fargo | Loan application available on-line: and 123 Seward Street New Account Questions Call:
1610 Anka Street 9150 Glacier Highway 300 Lincoln Street 306 Main Street 4966 North Tongass Ave 2415 Tongass Ave 115 Main Street 201 N. Nordic Drive 6th & Broadway |
(907) 523-2300
