Loan Programs Microloan Loan Program Loan Purpose To promote economic development in Alaska by helping small businesses access needed capital. General Requirements Loans may be made for working capital, equipment, construction or other commercial purposes for a business located in Alaska. Alaska resident for the 12 months preceding the date of application. Loans may not be made to pay costs that were incurred more than six months before loan application. Applicant(s) may not have any child support arrearage. Terms and Conditions Maximum loan amount is $35,000 to a person or up to $70,000 to two or more persons. Loan requests of $35,000 or more 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 six years. Interest rate will be fixed at the time of loan approval. Current Interest Rates All loans must be adequately secured. A loan may not exceed the value of the collateral used to secure the loan. A reasonable amount of money from other non-state sources must be committed for use on any project for which money from a loan will be used. Fees A $100 nonrefundable application fee must be submitted with the completed application. 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. Microloan Loan Application Package The following Microloan 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.