Originally Posted Aug. 26, 2020
Businesses in Skagway are eligible for up to a $300,000 loan from the Division of Economic Development.
Loan Program Goal and Objectives
To provide private sector employment by financing the start-up and expansion of businesses that will create significant long-term employment.
Loans may be made to a business located in a community with a population of 5,000 or less that is not connected by road or rail to Anchorage or Fairbanks, or with a population of 2,000 or less that is connected by road or rail to Anchorage or Fairbanks.
Loans may be made for working capital, equipment, construction or other commercial purposes.
Loans may not be made to pay costs that were incurred more than 6 months before loan application.
Loans must result in the creation of new jobs or the retention of existing jobs in the eligible community.
Provide a copy of each applicant's valid government issued identification at or before loan closing.
Terms and Conditions
Maximum loan amount is $150,000 to a person or up to $300,000 to two or more people.
Maximum loan term is 25 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.
A $150 nonrefundable application fee must be submitted with the completed application.
A 1% origination fee will be charged at the time that the loan is closed.
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.
Rural Development Initiative Fund Loan Application
The following Rural Development Initiative Fund 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®.
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