Juneau, Alaska (KINY) - The State of Alaska, the University of Alaska, and the Alaska Small Business Development Center announced on Monday the launch of the Alaska State Small Business Credit Initiative.
The program is statewide and will use $59.9 million from the U.S. Department of Treasury to finance incentives to help drive private sector funding to Alaska’s small businesses, and a release said it'll be for particularly those that have traditionally had a hard time securing loans or equity investments.
“The State of Alaska is proud to be partnering with the University of Alaska Small Business Development Center to administer these programs,” said Governor Mike Dunleavy. “The timing of this lending support is crucial for small, Alaskan owned businesses as the state’s economy continues to strengthen.”
The Alaska SSBCI funds, which will be sent out over the next 10 years, will be deployed by the Alaska SBDC through a $32 million loan guarantee program, a $15.9 million loan participation program, a $10 million equity investment program, and a $2 million loan collateral program.
"This investment in Alaska businesses will empower innovation and entrepreneurship across the state,” said University of Alaska President Pat Pitney, “and our Small Business Development Center is the perfect partner to help mentor the recipients of these funds. I have no doubt the capital disbursed as a result of these programs will fuel our economy and benefit our communities.”
The funds will be available through Alaska lenders and local equity investment funds starting in January 2023. They said businesses interested in using these programs to help secure financing should reach out to their lender or local equity investors.
Jon Bittner, State Director of the Alaska SBDC noted “The SSBCI program will be an amazing catalyst for economic growth, a perfect example of the state, University, and private sector partnering to build a better future for Alaska.” Businesses, lenders, or equity investors interested in learning more about the Alaska SSBCI funding programs can reach out to Jon Bittner at firstname.lastname@example.org.