Alaska Small Business Loans[yoast-breadcrumb]
Alaska Small Business Loans: Funding Options to Start or Grow Your Business
Hey there! If you’re an Alaska small business owner looking for funding, you’ve come to the right place. Getting a small business loan can be tricky, but don’t worry – we’re here to walk you through your options.At Delancey Street, we want to help you get the financing you need to start or expand your Alaska business. We know how tough it can be to get a small business loan approved, so we’ll work with you to find the best lending solutions. Keep reading and we’ll break down the different types of Alaska small biz loans available.
One great option is Small Business Administration (SBA) loans. The SBA doesn’t lend money directly, but they have partnerships with tons of lenders to provide funding. There are a few different types of SBA loans that could work for Alaska businesses:
- 7(a) Loans: The most common type of SBA loan, can be used for working capital, equipment, or real estate. Max loan is $5 million.
- Express Loans: Fast turnaround (36 hours or less) for amounts up to $350,000. Great for short-term needs.
- CDC/504 Loans: For purchasing real estate or equipment. Max loan is $5 million.
USDA Business Loans
If your business is agriculture-related, check out U.S. Department of Agriculture (USDA) loans. Options include:
- Farm Service Agency loans – for farms, ranches, and some agriculture-related businesses. Max loan is $600,000.
- Rural Development loans – for businesses in rural areas. Funds can be used for real estate, equipment, working capital, and refinancing debt. These loans go up to $25 million.
USDA loans have lower down payments and longer repayment terms than conventional bank loans. Find your USDA Alaska office contacts here.
Alaska State Business Loans
The state of Alaska offers some great small business lending programs too:
- Alaska Industrial Development & Export Authority (AIDEA): Provides loan participations up to $1 million in partnership with local lenders. Check out the AIDEA website.
- Alaska Division of Investments: Offers direct business loans from $10,000-$500,000 for new or existing Alaska businesses. Learn more on the Division of Investments site.
- Alaska Commercial Fishing & Agriculture Bank: Loans specifically for commercial fishing and agriculture. Borrow up to $600,000. Get info on their website.
The Alaska Small Business Development Center is another great resource – they offer free consulting and can point you towards grants or lenders. Find an SBDC advisor near you.
If you need fast funding, online lenders like Kabbage, OnDeck, and Fundbox can get you approved for a small business loan in just days. Rates are higher than traditional loans but they move quickly. Minimum credit scores around 600. Check ’em out:
Alternative Financing Options
Beyond traditional loans, a few other options for Alaska businesses:
- SBA Express Bridge Loans – get quick funds while you wait for SBA loan approval. Up to $25,000.
- Business Credit Cards – use cards like Chase Ink or Amex Blue Business Plus to cover expenses. Build business credit.
- 401(k) Business Financing – Some plans allow you to invest 401(k) funds in your own business. Requirements vary.
- Invoice Factoring – Sell outstanding invoices to get immediate cash flow. Rates vary by factoring company.
- Business Cash Advances – Get an upfront lump sum in exchange for a % of future credit card sales. High rates but quick funding.
- Crowdfunding – Platforms like Kickstarter and Indiegogo let you raise funds from backers. Works best for consumer products.
Grants for Alaska Businesses
Beyond loans, a few grants are available:
- SBA Growth Accelerator Fund Competition – Get mentoring plus an investment of up to $50k for startups.
- USDA Value-Added Producer Grants – Grants to help ag producers expand into value-added products. Up to $75k.
- Alaska Energy Authority Renewable Energy Fund – Grants for renewable energy projects. Varies.
- Rasmuson Foundation Tier 1 Grants – Funding up to $25k for non-profits & social enterprises in Alaska.
- Alaska Marketplace Live – Annual business competition with cash prizes up to $10k.
Loan Requirements & Qualifying Factors
When applying for a small business loan in Alaska, lenders will review factors like:
- Your personal credit score – shoot for 680+
- Your business plan – detailed plans improve chances of approval
- Revenue and cash flow – most want 2 years of operating history
- Collateral – assets to secure the loan like real estate or equipment
- Industry experience – background in your business area is helpful
Bringing an accountant or advisor to the application can also increase credibility with lenders.
Applying for an Alaska Small Business Loan
Ready to get started? The application process will vary by lender but typically includes:
- Completing an application with info on you, your business, amount requested, purpose, etc.
- Providing financial statements like tax returns, profit/loss statements, balance sheets, etc.
- Submitting a business plan with financial projections, operations overview, marketing strategy, etc.
- Giving collateral if required – property, securities, business assets that secure the loan.
- Signing a promissory note outlining repayment terms like interest rate, payment schedule, etc.
It can take 1-3 months to get approved and receive funds. Having an accountant or advisor to help prepare is useful!
Tips for Securing Financing
Here are a few tips to boost your chances of getting that Alaska small business loan:
- Have a solid business plan with realistic financial projections
- Get your personal credit score above 700 if possible
- Keep detailed financial records like tax returns and profit/loss statements
- Only apply for what you need – don’t get greedy!
- Have collateral to secure the loan
- Highlight experience and skills related to your business
- Be ready to personally guarantee the loan
- Explain how the funds will grow your business & increase profit
Following these tips will show lenders you are a smart investment – and make approval more likely. Good luck!
Let’s Get Your Alaska Business Funded!
Phew, that was a lot of info right? The main takeaway is that loans and grants are available to Alaska small business owners like you.At Delancey Street, we want to help you secure financing so you can start that brewery, expand your fishing tour company, open a new restaurant – whatever your business dream might be!Our team is standing by to answer your questions and help you find the right funding options. Give us a call at 1-800-555-1212 or request a quote right here and we’ll get the ball rolling.