- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 81. Business Loan and Grant Programs
- Section 130. Limitations on Loans.
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AS 45.81.130. Limitations on Loans.
- (a) State participation in a loan to a business may not be more than $3,000,000.
- (b) The loan shall be secured by acceptable collateral and may not exceed 75 percent of the
appraised value of the collateral offered as security.
- (c) The rate of interest may not exceed nine and one-half percent a year on the unpaid balance
of the state's share of the loan.
- (d) A loan of $150,000 or more under AS 45.81.100 - 45.81.190 must be participated in by a financial
institution in an amount which is not less than 20 percent of the total amount of the loan. A loan of less than $150,000
does not require participation by a financial institution.
- (e) The participating financial institution shall administer and service the loan for a reasonable
fee not exceeding one-half of one percent.
- (f) The lien of the state is a first lien to the extent of its portion of the total loan and the
participating financial institution shall have a first lien to the extent of its portion of the total loan.
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