Areas Served: Statewide Alaska
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%.
) AIDEA offers either a fixed or variable interest rate.
The term of the AIDEA portion of the loan can exceed the bank’s term, thereby lowering the scheduled payments.
AIDEA provides a secondary long-term market for eligible financial institutions.
The originating financial institution retains a portion of the loan and also services the entire loan (i.e., payments are made to the bank, not to AIDEA).
The project must be in Alaska.
Contact InformationAlaska Industrial Development and Export Authority (AIDEA)
Address: 813 W. Northern Lights Blvd.
City: Anchorage
State: Alaska
Website:
http://www.jedc.org/business/loanaidea
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