1. Department of Commerce, Community, and Economic Development

2. Division of Economic Development Financing Section Development Section

3. Division of Economic Development Small Business Economic Development Rural Development Initiative Fund Commercial Fishing Capstone Avionics Fisheries Enhancement

4. Alaska’s Size At 591,000 square miles, Alaska is as wide as the lower 48 states and larger than Texas, California and Montana combined.

5. PURPOSE To provide private sector employment by financing the start-up and expansion of businesses that create significant long-term employment. To provide financing to small businesses in Alaska who are unable to obtain private financing for the entire project.

6. ELIGIBLE AREAS Eligible areas includes all communities in the state of Alaska with a population of less than 30,000. Loans in communities of 30,000 or more are available on a limited basis, depending on funds availability.

7. GENERAL REQUIREMENTS Loans must result in the creation or retention of jobs in an eligible area. Applicants are required to match loan funds with cash or other private, non-public financing. The private match will be 1.5 times the loan amount requested. Costs incurred prior to receipt of the application may not be used to meet the match requirement.

8. GENERAL REQUIREMENTS Loans may not be made if a private lender is willing to finance the entire project. Applicants must supply a turn down letter from a recognized lender listing the reason(s) for denial.

9. TERMS AND CONDITIONS Maximum Loan Amount: $300,000 per project Maximum Loan Term: 20 Years – fixed assets 5 Years – working capital Fixed Interest Rate: Prime – 4.0%; 4.0% floor Loans will be adequately secured

10. TERMS AND CONDITIONS Loans may be in a subordinate lien position to associated private sector loans. Assets purchased with loan proceeds must be offered as collateral for the loan. Personal guarantees are required of all persons holding 20% or more ownership interest in the business receiving the loan.

11. PURPOSE To provide private sector employment by financing the start-up and expansion of businesses that create significant long-term employment

12. ELIGIBILE AREAS Loans may be made to a business located in an Alaskan community with a population of: 5,000 or less, that is not connected by road or rail to Anchorage or Fairbanks 2,000 or less, connected by road or rail to Anchorage or Fairbanks

13. GENERAL REQUIREMENTS Loan must create new jobs or retain existing jobs. Loans may be made for commercial real estate, working capital, equipment or other commercial purposes. Non-state funding must be a part of the total project cost. Loans may not be made to pay costs that were incurred more than 6 months before receiving the loan application.

14. TERMS AND CONDITIONS Maximum Loan Amount: $150,000 per person $300,000 for 2 or more people Maximum Loan Term: 25 Years Fixed Interest Rate: Prime – 1.0% 4.0% floor Adequately secured

15. PURPOSE To promote the development of a predominantly resident fisheries and vessel & gear upgrades for the purpose of improving the quality of Alaska seafood products.

16. GENERAL REQUIREMENTS Alaska resident for the past 2 years No past due child support Recent fishing experience in Alaska Economic dependence on fishing

17. TERMS AND CONDITIONS Maximum Loan Amount: $300,000 or less, varies by program Maximum Loan Term: 15 years Fixed Interest Rate: Prime + 2% on most loan types Prime – 2% on PQI loans, floor 3.0% Prime – 2% on engine fuel efficiency loans, floor 3.0% Priority lien required on item being purchased with loan proceeds

18. LOAN TYPES Limited Entry Permit purchases Vessel Purchases Refinances Product Quality Improvement Engine fuel efficiency upgrades Gear purchases IFQ purchases Tender Product Quality Improvements Past due IRS taxes

19. PURPOSE To provide long-term, low interest loans for the purchase and installation of avionics equipment related to Capstone and FAA’s NextGen program for aircraft that operate in Alaska.

20. Division of Economic Development Small Business Assistance Center commerce.alaska.gov/ded/dev/smallbus/home.cfm Economic Development Resources & Publications commerce.alaska.gov/ded/dev/econdev/econdev.htm Establishing a Business in Alaska www.commerce.state.ak.us/ded/fin/EstablishingABusiness.pdf Other Programs and Links commerce.alaska.gov/ded/programs/html

21. DIVISION OF ECONOMIC DEVELOPMENT OFFICES: Anchorage:Atwood Building (550 th West 7 th Avenue) Juneau:Vintage Business Park 1-800-478-LOAN Please visit us at: commerce.alaska.gov/ded/fin/index.cfml