AIDEA Board Approves Loan for Valdez Business
Financing Provided for Hotel Project
By the Alaska Industrial Development and Export Authority (AIDEA)
Digital rendering of the Totem Hotel & Suites
Image courtesy of Totem Hotel & Suites
(Anchorage) – The Alaska Industrial Development and Export Authority (AIDEA) Board approved a loan participation for a project located in Valdez, Alaska.
The loan, to Totem Inn, Inc., is for $8,200,000 (90%) of a $9,150,000 loan brought to AIDEA by First National Bank Alaska (FNBA). FNBA originated the loan and is participating with $950,000. The purpose of this loan is to pay off FNBA construction financing as well as closing costs for Totem Hotel & Suites, located at 144 E. Egan Avenue in Valdez.
This AIDEA loan participation produces economic benefit to the borrower by providing a 25 year term at a fixed rate of 3.85 %. The project created 75 construction jobs, 14 new positions, and retained seven existing jobs.
AIDEA’s Loan Participation Program provides permanent financing, both taxable and tax-exempt, to borrowers through a qualified originator for the purpose of developing, acquiring or enhancing Alaska business enterprises, or for a qualified energy development project. The Loan Participation Program provides the benefit of long-term fixed or variable rate financing on the portion of the loan purchased by AIDEA. AIDEA does not originate loans, but is able to purchase up to 90% of a commercial loan to a maximum of $25 million, that is sponsored and originated by an eligible financial institution.