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 one and one half the loan amount requested.
• Costs incurred prior to receipt of the loan application by the Division of Economic Development 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.
• Provide a copy of each applicant's valid government issued identification at or before loan closing.

• Eligibility for the SBED program includes all communities in the state of Alaska with a population of less than 30,000. Loans in communities of 30,000 or more are available on a limited basis, depending on funds availability.

• 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.