Loan Programs Fisheries Enhancement Loan Program Goal and Objectives Loans may be made for planning, construction, and operation of fish hatchery facilities, including preconstruction activities necessary to obtain a permit, construction activities to build the hatchery facility, and costs to operate the facility. Loan funds may not be used to reimburse an applicant for expenses which were paid for more than six months before receipt of the application by the Division of Investments. Eligibility Loans may be made to qualified regional associations or private, nonprofit corporations who have obtained a private, nonprofit hatchery permit from the Alaska Department of Fish and Game. Loans may also be made for planning and preconstruction purposes prior to receipt of a hatchery permit from the Alaska Department of Fish and Game. Lending Limits The maximum loan amount is $10,000,000. If a request for more than $1,000,000, the applicant must be a regional association or private, nonprofit corporation approved by the regional association in the specific area of the proposed hatchery development. Loan Terms The maximum loan term is 30 years. Terms of all loans will be fixed by the loan committee in consideration of the purpose of the loan, the needs of the borrower, the collateral offered and the ability to repay the loan. No repayment of the principal is required for an initial period of six to ten years; no interest on the principal shall accrue during that period. Interest Rate Interest rate will be fixed at the time of loan approval. Current Interest Rates Building Construction If the loan involves the construction of a new commercial building, the building must be in compliance with the thermal and energy standards established by the American Society of Heating, Refrigeration and Air Conditioning Engineers as required by AS46.11.040. Collateral All loans must be secured by collateral which may include a lien on buildings, equipment, machinery, land, marketable securities, approved assignment of enhancement tax receipts, or sale of surplus fish from the hatchery. The specific amount to be loaned against any collateral shall be determined by the loan committee. Refinancing Refinancing of a long-term note is not allowed under the program. A short-term note may be refinanced if it has a term of one year or less and the debt was incurred and note executed within six months prior to receipt of the application by the Division of Economic Development. Existing loans with the Division of Economic Development may be refinanced to a lower interest rate if the loan is current. There is a $100.00 refinance fee for each loan. Controlled Disbursement Disbursement of loan funds will be in a manner prescribed by the Division of Economic Development. Loan Costs The borrower shall pay all direct costs incurred by the state in processing the application for a loan, including, but not limited to, the cost of credit reports, title insurance, inspection expenses, or other direct costs. The state is not liable for any costs incurred by the borrower during the application process. Fees A $100 nonrefundable application fee must be submitted with the completed application. If your application is approved, an origination fee of one percent (1%) of the total loan amount will be due at closing. Refinance Fee: $100.00 per loan. Assumptions Assumptions are not allowed under this program. Regulations The Department of Commerce, Community and Economic Development has adopted administrative regulations governing policies and procedures, and public disclosure of information in an individual loan file. Copies of these regulations may be obtained by contacting the Division of Economic Development. Fisheries Enhancement Loan Application The following Fisheries Enhancement 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 Modification 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.