Loan Programs Alternative Energy Loan Purpose Loans may be made to purchase, construct and install alternative energy systems or energy conservation improvements in commercial buildings. General Requirements Loan must be for the purchase, construction, and installation of alternative energy systems or energy conservation improvement in commercial buildings. Alaska Resident for the 12 months preceding the date of application. Loans may not be made to pay costs that were incurred more than four months before receipt of loan application. Loans must result in alternative energy production or energy conservation. Applicant(s) may not have any child support arrearage. Terms and Conditions Maximum loan amount is $50,000. Loan requests over $30,000 require a letter of denial from a financial institution, stating the reason(s) for denial, or confirmation that a loan from a financial institution is contingent on the applicant receiving a loan from the fund. Maximum loan term is 20 years. Interest rate will be fixed at the time of loan approval. Current Interest Rates All loans must be adequately secured, include a lien on real property, and the improvements financed. Fees A $100 application fee (non-refundable) must accompany all applications. A 1% origination fee is due at closing. Borrower is responsible to pay all direct costs incurred in processing an application including title reports and title insurance, recording fees, appraisals, travel or other direct costs. Definitions Alternative Energy System: A source of thermal, mechanical or electrical energy that is not dependent on oil, gas, or nuclear fuel for the supply of energy for space heating and cooling, refrigeration and cold storage, electrical power, mechanical power, or heating of water. Commercial Building: A building intended to be used for commercial purposes. Excluding residential structures, apartment complexes of less than five units, and single units within a condominium or cooperative complex. Energy Conservation Improvement: Structural insulation, thermal windows and doors, weatherizing, heat exchangers, high efficiency furnace and boiler additions, etc. Alternative Energy Loan Application Package The following Alternative Energy Loan Application pages are in PDF format. You will need Adobe Reader in order to view/print them. Acrobat Reader is distributed freely and available for download from Adobe®. Loan Application The Division of Economic Development, Department of Commerce, Community, and Economic Development complies with Title II of the Americans with Disabilities Act of 1990. This publication is available in alternative communication formats upon request. Please contact the Division of Economic Development at (907)465-2510 or TDD (907)465-5437 to make any necessary arrangements.