Small Business Economic Development Revolving Loan Fund – Division of Economic Development Department of Commerce, Community, and Economic Development

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Areas Served: Eligibility for the SBED program 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.

The Small Business Economic Development Revolving Loan Fund was developed to provide private sector employment by financing the start-up and expansion of businesses that will create significant long-term employment.

Companies must be a small business as defined by the Small Business Administration (SBA).

The SBA definition includes thresholds for number of employees, net worth and annual net income.

Generally, a business must have fewer than 500 employees, have a net worth under $6 million and have an average net income after Federal taxes for the preceding two years less than $2 million to qualify.

Applicants are required to match loan funds with cash or other private, non-public financing.

This private match must be one and one half the loan amount requested.

– Costs incurred prior to receipt of the loan application by the Division may not be used to meet the private, non-public match requirement.

Loans may not be made if a bank is willing to finance the entire project.

Applicants must supply a turn down letter from a lender listing the reason(s) for denial.

If a bank is willing to finance a portion of the project to be used as a match for a loan under this program, applicants must supply a letter from the bank explaining the reasons the bank is unable to finance the entire project.

Loans may not be made to applicants that have been debarred or suspended from receiving federal benefits.

Loans must result in the creation or retention of jobs that would be lost in eligible areas.

Maximum loan amount is $300,000.

Interest rate is fixed at the time of approval; generally below 6%.

Maximum term of 20 years for fixed asset loans and 5 years for working capital loans.

Term may not exceed the term of any associated private sector loans.

All loans must be adequately secured.

The loan amount may not exceed 90% of the value of the collateral offered.

Loans may be in a subordinate position to associated private sector loans.

All 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.

Contact Information
Division of Economic Development Department of Commerce, Community, and Economic Development
Address: PO Box 34159
City: Juneau
State: Alaska

Website: https://www.commerce.alaska.gov/web/ded/

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