Governor Parnell Signs Economic Development Legislative Package
June 11, 2010, Ketchikan, Alaska - Governor Sean Parnell signed a package of legislation that will strengthen Alaska's economy and ensure that Alaska businesses will continue to have access to affordable long-term capital for expansion and creation of new jobs.
Senate Bill 300, sponsored by the governor, permits the Alaska Industrial Development and Export Authority (AIDEA) to set loan participation interest rates at market rates rather than tying them to a volatile bond market. The bill also enables AIDEA to offer interest rate rebates if a project creates jobs or promotes development in rural Alaska. SB 300 increases the Rural Development Initiative Fund loan limit from $100,000 to $150,000 and allows an Alaska borrower in good standing to have more than one loan.
House Bill 90 restores AIDEA's general bonding authority and gives AIDEA the authority to issue up to $10 million in bonds for AIDEA-owned projects. AIDEA's general bonding authority gives the agency greater flexibility to issue bonds to finance loans or smaller development projects.
Senate Bill 301, the Power Project Fund bill sponsored by the governor, allows AIDEA to purchase energy loan portfolios from the Alaska Energy Authority (AEA). This provides AEA with the cash to make much-needed new loans with sale proceeds.
Senate Bill 269, also sponsored by the governor, gives AIDEA important tools to work with the federal government's allocation of tax-exempt Recovery Zone Facility Bond volume cap to ensure that Alaska businesses can take advantage of tax-exempt financing for their development projects.
House Bill 365, sponsored by Representative Charisse Millett, pertains to fishing capacity reduction programs, commonly known as "buybacks," which reduce the number of active fishermen within a fishery by permanently retiring limited-entry permits. June 11, 2010, Ketchikan, Alaska - Governor Sean Parnell signed a package of legislation that will strengthen Alaska's economy and ensure that Alaska businesses will continue to have access to affordable long-term capital for expansion and creation of new jobs.