Alaska Division of Investments

Department of Commerce,Community, and Economic

Development

Available Loan Programs

• Rural Development Initiative Fund

• Small Business EconomicDevelopment

• Commercial Fishing Revolving LoanFund

Photos courtesy of: Division of Community and Business Development © #570316 Cordova and #570312 Seldovia

Rural Development Initiative Fund

Goal

To provide privatesector employmentby financing the start-up and expansion ofbusinesses that will

create significant

long-term

employment.

RDIF General Requirements

• Eligible Areas witha population of

– 5,000 or less, notconnected by roador rail to Anchorageor Fairbanks

– 2,000 or less,connected by roador rail to Anchorageor Fairbanks

Small Business Economic

Development RLFGoal

Loans for the start up orexpansion of businessesthat will create or retain jobsin eligible areas.

Provide financing to smallbusinesses who are unableto obtain private financingfor entire project.

Non-public matching funds (atleast 50%)

Eligible in most areas exceptthe Municipality of Anchorage,the Borough/City of Juneau,and the Aleutians East Borough

Commercial Fishing RLF

Goal

To promote thedevelopment ofpredominantly

resident fisheries, and

vessel & gear upgradefor the purpose ofimproving the quality

of Alaska seafoodproducts.

Commercial Fishing

General Requirements

• Alaska resident for2 years

• No past due ChildSupport

• Recent fishingexperience inAlaska

• Economicdependence onfishing

Puffin photo courtesy of: DCCED, Alaska Division of Tourism © #3881

Commercial Fishing

Terms and Conditions

• Maximum term 15 years

• Maximum individual loan amount is $300,000or less, varies by program

• Maximum Community Quota Entity (CQE) loanamount is $2,000,000 per community

• Interest rate

– Prime + 2% on most loan types

– Prime - 2% on Product Quality Upgrade loans

• Priority lien on item being purchased

Loan Programs

• Limited EntryPermit purchases

Photo

courtesy of

Bruce D

Anderson

Loan Programs

• Limited EntryPermit purchases

• Vessel

– Purchase

– Refinance

– Upgrade

Photo

courtesy of

Bruce D

Anderson

• Limited EntryPermit purchases

• Vessel– Purchase

– Refinance

– Upgrade

• Gear

Photo

courtesy of

Bruce D

Anderson

Loan Programs

• Limited EntryPermit purchases

• Vessel– Purchase

– Refinance

– Upgrade

• Gear

• IFQ purchases

Photo

courtesy of

Bruce D

Anderson

Loan Programs

Loan Programs

• Limited EntryPermit purchases

• Vessel– Purchase

– Refinance

– Upgrade

• Gear

• IFQ purchases

• Product QualityImprovement

Photo

courtesy of

Bruce D

Anderson

Loan Programs

• Limited EntryPermit purchases

• Vessel– Purchase

– Refinance

– Upgrade

• Gear

• IFQ purchases

• Product QualityImprovement

• Pay past dueIRS taxes

Photo

courtesy of

Bruce D

Anderson

Tender

Product Quality Improvement• Effective 10-25-05

• Alaska residency for 2years

• Licensed Alaska tendervessels

• The only loan availableto non-harvestervessels in theCommercial FishingRLF

• Interest rate is 2%below prime

Photo courtesy of: DCCED, Alaska Division of Tourism, © #2487

Community Quota Entity

• CQEs can purchase halibutor sablefish quota sharesout of the existing quotashare pool

• The quota shares must befished by residents of thecommunity

• Loan Program is similar toregular quota shareprogram

In 2004 NMFS revised the halibut and sablefish quota share program to

allow non-profit entities called CQEs to purchase and hold halibut and

sablefish IFQs.

Community Quota Entity

• have a populationless than 1500

• have access tosaltwater

• lack of direct roadaccess

• had historicparticipation inhalibut or sablefishfisheries

42 rural Gulf of Alaska communities in Southeast,

Southcentral, and Southwest Alaska were identified as eligible

to form a CQE that:

Community Quota Entity

• Craig - Prince of Wales IslandCommunity Holding Corp

• Hydaburg - HydaburgCommunity Holding Corp

• King Cove – Aleutia Inc

• Sand Point – Aleutia Inc

• Larsen Bay - Larsen BayDevelopment Corp

• Ouzinkie - Ouzinkie CommunityHolding Corp

• Pelican – Pelican Fishing Corp

• Perryville – Perryville CQE Inc

• Hoonah – Hoonah CommunityFisheries Corp

• Old Harbor – Cape Barnabas Inc

National Marine Fisheries Service approved CQEs are:

Photo courtesy of: DCCED, Alaska Division ofTourism, © Kurt Byers, #6690

BUSINESS RESOURCES . . .http://www.commerce.state.ak.us/dca/edrg/EDRG.htm

• Searchable database forfunding, technical, and avariety of services

• Interactive on line orprintable

• inventory of programs andservices which can provideeconomic developmentassistance to Alaskancommunities, businesses,& individuals.

ANOTHER BUSINESS RESOURCE . . .

On line at the Division of Investmentswww.commerce.state.ak.us/investments

• Great source ofinformation forentrepreneurs whowant to start orexpand a business inAlaska.

• Available on line orin print

• Also available on CD

Establishing A Business

In Alaska

13th

Edition

March 2006

Alaska Division of Investments

OFFICES:

Anchorage: Atwood Building downtown

Juneau: Heritage Park in the Valley

1-800-478-LOAN

Please visit us at:

www.commerce.state.ak.us/investments

For information, loan applications, and news

Thank you!

Photos courtesy of the Department of Commerce,

Community, and Economic Development