JUNEAU – Alaskans interested in starting or growing a small business will soon have a new source of business financing through the Alaska Microloan Revolving Loan Fund (AMRLF). The Division of Economic Development will begin accepting loan applications for the new fund on November 5, 2012.
The AMRLF provides short term loans to Alaska businesses for working capital; purchasing machinery, equipment, and inventory; and, leasehold improvements.
“We are pleased this financing option will encourage entrepreneurs to capitalize on their ideas and ingenuity to create job opportunities,” said Susan Bell, Commissioner for the Department of Commerce, Community, and Economic Development.
Loans are available up to $35,000 for individuals or $70,000 for two or more people, with a maximum loan term of six years. The new loan fund is the result of House Bill 121 that passed in the final session of the 27th Legislature.
Applications and specific program information for all loan programs will be available on November 5, 2012 on the Division of Economic Development’s website at www.commerce.alaska.gov/ded/fin <http://www.commerce.alaska.gov/ded/fin> or by contacting a loan officer at
1-800-478-LOAN(5626). Email inquiries can be sent to financing@alaska.gov <mailto:financing@alaska.gov> .
Comments (5)
Add commentVery cool!
I hope this jumpstarts a bunch of new ventures.
I'm wondering why this loan program was deemed necessary? Too difficult for startups to get conventional financing I assume.
Lat, Because the state is
Lat,
Because the state is jealous of the feds who now own 50% of all US mortgages due to the federal takeover of Freddie Mack and Fannie May.
The state wants some of that action.
Currently, they are charging 4% interest on a Small Business Economic Development loan. http://www.commerce.alaska.gov/ded/fin/interest_rates.cfml
Why is the state in Business? What happens to the money made from interest?
It sure is tough for business to compete with the state.
Agree noroad, but...
Is the state filling an unmet need? Are these small loans for startups who couldn't have qualified for private loans (at reasonable rates)?
I assume there will be some defaults. 4% might be to cover that loss maybe?
I hope......
The gal who wanted to open the cafe downtown sees this and takes advantage of it.
I worry that taxpayer funds
I worry that taxpayer funds are being used to provide loans to people who do not have the ability to receive that same loan on the open market. This means that the state will either be taking business from industry or will mainly be providing high risk loans. As a “stockholder”/citizen both of these propositions sounds risky.