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 Economic Development.
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.
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.
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
The interest rate will be fixed at the time of loan approval and will
be approximately one percent (1%) above the Prime Rate not to exceed nine
and one-half percent (9.5%) and not less than three percent (3%).
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.
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 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.
Disbursement of loan funds will be in a manner prescribed by the
Division of Economic Development.
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.
- A nonrefundable $100.00 application fee in the form of a
check or money order made payable to the State of Alaska must
accompany the 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 are not allowed under this program.
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