To provide private sector employment by financing the start-up and expansion of businesses that will create significant long-term employment.

• Companies must be a small business as defined by the Small Business Administration (SBA). The SBA definition includes thresholds for number of employees, net worth and annual net income. Generally, a business must have fewer than 500 employees, have a net worth under $6 million and have an average net income after Federal taxes for the preceding two years less than $2 million to qualify.
• Applicants are required to match loan funds with cash or other private, non-public financing. In many cases this private match must be twice the loan amount requested.
• Costs incurred prior to receipt of the loan application by the Division of Investments may not be used to meet the private, non-public match requirements.
• Loans may not be made if a bank is willing to finance the entire project. Applicants must supply a turn down letter from a lender listing the reason(s) for denial. If a bank is willing to finance a portion of the project to be used as a match for the loan under this program, applicants must supply a letter from the bank explaining the reasons the bank is unable to finance the entire project.
• Loans may not be made to applicants that have been debarred or suspended from receiving federal benefits.
• Loans must result in the creation or retention of jobs that would be lost in eligible areas.

"Eligible areas include the land granted to Native Alaskans that remain in the ownership of the Village Corporations, the twelve Alaskan Regional Corporations and the traditional Alaskan Native Villages. These terms are defined under the Alaskan Native Claims Settlement Act, as amended, and 13 CFR 301.2."

• Funding is limited. Applicants are encouraged to call and discuss availability of funds prior to submitting a loan application.

• Maximum loan amount is $300,000.
• Interest rate is fixed rate generally below 6%.
• Maximum term of 20 years for fixed asset loans and 5 years for working capital loans. Terms may not exceed the term of any associated private sector loans.
• All loans must be adequately secured. The loan amount may not exceed 90% of the value of the collateral offered.
• Loans may be in a subordinate position to associated private sector loans.
• All assets purchased with loan proceeds must be offered as collateral for the loan.
• Personal guarantees are required of all persons holding 20% or more ownership interest in the business receiving the loan.

• A $200 application fee must accompany all applications. This fee will be credited toward the origination fee due if the application is approved.
• A 1% origination fee will be charged ($100 minimum) at the time that the loan is closed.
• Applicants will be responsible for all closing costs.