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Alaska Statutes.

Title 3. Agriculture, Animals, and Food

Chapter 20. Agricultural and Industrial Program Support

Section 210. Forgivable Loan Program for Meat Processing Facilities.

AS 03.20.210. Forgivable Loan Program for Meat Processing Facilities.

(a) The department shall establish a forgivable loan program in regulation, under which a recipient's loan may be forgiven by the department if the recipient implements a business plan approved by the department and begins processing meat, or increases the quantity of meat processed, in the recipient's facility. A loan may be used by a recipient to fund the expansion of a facility that operates under a program of federal inspection that plans to increase processing of meat from animals raised in the state. The forgivable loan program must allow a loan to be forgiven if the recipient implements the approved business plan and demonstrates a subsequent increase in food production and distribution.

(b) In administering the forgivable loan program established under (a) of this section, the department

(1) shall develop criteria for awarding a forgivable loan and a process for applying for a forgivable loan that includes requiring

(A) a forgivable loan applicant to submit a business plan that provides

(i) how the applicant will meet the criteria required by the department to approve a forgivable loan under this section;

(ii) a timeline for the applicant to meet the upgrades, construction, or expansion funded by the forgivable loan; and

(B) the department to

(i) approve an applicant's business plan before awarding a forgivable loan;

(ii) visit an applicant's facility or the site of a facility proposed by an applicant to be upgraded, constructed, or expanded with forgivable loan funds;

(2) shall award forgivable loans preferentially to support facilities that prioritize seasonally feasible processing of meat from animals raised in the state;

(3) shall require a recipient of a forgivable loan to report to the department on the use of forgivable loan funds;

(4) may make forgivable loans of up to $250,000 to an applicant whose business plan is approved under this subsection for eligible expenses approved by the department; and

(5) shall, subject to appropriation, make the program available to applicants annually until all available funds have been distributed.

(c) A recipient of a forgivable loan made under this section may use forgivable loan funds for costs related to activity described in (a) of this section that are approved by the department, including costs of technical assistance and the purchase of equipment.

(d) The department may charge an administrative fee to the recipient of a forgivable loan made under this section to cover the department's costs of administering the forgivable loan program. The department

(1) shall deduct the fee from the forgivable loan funds provided to the recipient; and

(2) may not charge a recipient more than three percent of the amount of a forgivable loan made to the recipient applicant under this section.

(e) The meat processing facilities forgivable loan fund is established in the department and consists of appropriations to the fund. Appropriations to the fund do not lapse.

(f) A business plan approved by the department under (b)(1)(B)(i) of this section may be amended upon approval of the department.

(g) A forgivable loan recipient must repay to the fund any money not spent from a forgivable loan received under this section. Forgivable loan funds used for expenses that are not eligible under (a) of this section or that are not accounted for in a recipient's business plan approved by the department under (b) of this section must also be repaid to the fund. Any money repaid by a forgivable loan recipient shall be deposited into the general fund.