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.

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 that period.

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 Alaska Division of Investments.

Existing loans with the Division of Investments 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 Alaska Division of Investments.

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.

1. 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.
2. If your application is approved, an origination fee of ½ of one percent of the total loan amount will be due at closing.
3. 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 Alaska Division of Investments.