Small Business Development Center Releasing Funds to Encourage Lending to Small Businesses
The University of Alaska Small Business Development Center (SBDC) is releasing $49 million in lending through the State Small Business Credit Initiative (SSBCI). The programs provide incentives to participating lenders to make loans to Alaska-based small businesses that would normally not qualify.
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The SSBCI enhances lending opportunities under three programs. The $32 million Loan Guarantee Program guarantees loans up to 50 percent of qualified loan amounts. The $15.9 million Loan Participation Program purchases participations or subordinate lending up to 50 percent. And the $2 million Collateral Loan Program provides collateral support up to 25 percent of project value.
SBDC announced last year that it would deploy $59 million in SSBCI program dollars to drive private sector investments into Alaska’s small businesses. The other $10 million is allocated for an equity investment program.
The center is disbursing the incentives on behalf of the State of Alaska, which received federal funds from the US Department of Treasury, authorized by the 2021 American Rescue Plan Act.
“The SSBCI program will be an amazing catalyst for economic growth and is a perfect example of what can happen when the State, University, and private sector work together,” says SBDC Director Jon Bittner.
SSBCI lending programs are meant to drive significant amounts of new and existing private sector businesses that will become the backbone of Alaska’s economic future.
“This investment in Alaska businesses will empower innovation and entrepreneurship across the state,” says University of Alaska President Pat Pitney, “and our Small Business Development Center is the perfect partner to help mentor the recipients of these funds. I have no doubt the capital disbursed as a result of these programs will fuel our economy and benefit our communities.”
SSBCI partners with lenders across the state to facilitate small business loans. More information, forms, and updates are on the SSBCI website.