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AIDEA Board Approves Loan for New Visitor Facility in Seward

Oct 23, 2019 | Monitor

Financing provided for Gateway Hotel

Exterior rendering of Gateway Hotel in Seward.

AIDEA

ANCHORAGE—The Alaska Industrial Development and Export Authority (AIDEA) Board unanimously approved a loan participation for a project located in Seward.  

The loan, to Seward Wildlife Cruises, LLC, is for $8,100,000 (90 percent) of a $9,000,000 loan brought to AIDEA by First National Bank Alaska (FNBA). FNBA originated the loan and is participating with $900,000. The purpose of this loan is to pay off construction financing provided by FNBA for the new eighty-room Gateway Hotel located at 1115 4th Avenue, in Seward.

The project created thirty construction jobs and will support thirty-five new permanent positions. Additionally, this AIDEA loan participation produces economic benefit to the borrower by providing a twenty-five-year term at a fixed rate of 3.41 percent. The new hotel is set to open in June 2020.

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 percent of a commercial loan to a maximum of $25 million, that is sponsored and originated by an eligible financial institution.

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