Printer Friendly

Regulations revised.

Small, start-up businesses in the Bush and large commercial real estate borrowers are the targeted beneficiaries of two sets of regulation changes approved by the board of directors of the Alaska Industrial Development and Export Authority in July. The new regulations allow AIDEA to guarantee unsecured loans of up to $50,000 with a term not to exceed five years.

"The purpose here is to ease AIDEA's application process and thereby encourage small businesses located outside the population centers," says Bill Scott, AIDEA executive director.

The new rules also allow banks to make certain long-term commercial loans that they otherwise would have to turn down. Under the new regulations, a differential program will allow banks to amortize their portion of a loan over a shorter time period. The shortened amortization period for the banks is to help finance projects that would not be financible otherwise.

Explains Scott, "Our targets here are the larger commercial projects proposed by borrowers who might not have a long established relationship with a bank, projects which require longer loan terms than banks are able to consider for a new customer."

The revisions were mandated this spring by the Alaska Legislature with the passage of HB 206. AIDEA was created by the Alaska Legislature to promote prosperity and alleviate unemployment by financing or easing the financing of business and export enterprises within the state. Scott says the new rules will help AIDEA accomplish its mission.
COPYRIGHT 1991 Alaska Business Publishing Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Alaska Industrial Development and Export Authority regulations
Publication:Alaska Business Monthly
Date:Oct 1, 1991
Previous Article:Carrier acquired.
Next Article:Proving Poker Flat.

Related Articles
Financing funded.
Proving Poker Flat.
Inside Alaska industry.
Locking onto business loans: a detailed look at all the loan options you can use to finance your firm.
Legislation introduced for AIDEA.
AIDEA Optimistic About Seafood Plant's Future.
Industry suggests improvements for exports. (Government Policy Notes).

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters