3 AAC 99.710 - Eligibility
(a) The authority may guarantee a new loan or
a loan to refinance existing debt if the loan is made to an Alaska business
enterprise whose majority interest is held by individual state
residents.
(b) The borrower must
have the financial and business ability, as determined by the authority, to
successfully repay the loan.
(c)
Guarantees for loans may be issued only if the loans
(1) are for commercially reasonable
purposes;
(2) will help to
stabilize the economic base of the area and create or maintain employment;
and
(3) allow the borrower to
create additional economic opportunity, improve the economic viability of the
borrower's domestic/or export business, and/or facilitate business
expansion.
(d) The
authority will ensure that all loan guarantees are distributed statewide in an
equitable manner.
(1) One-half of the total
available guarantee dollars is allocated on the basis of geographic
distribution and one-half of the total available guarantee dollars is allocated
on the basis of population distribution. The authority will annually determine
and report to the board the allocations of total available guarantee dollars
between the following seven economic regions used by the State of Alaska,
Department of Labor and Workforce Development in reporting population
information:
(A) The Municipality of
Anchorage.
(B) The
Matanuska-Susitna Borough.
(C) The
Gulf Coast Region which includes the Kenai Peninsula Borough, the Kodiak Island
Borough, and the Valdez-Cordova Census Area.
(D) The Interior Region which includes the
Denali Borough, The Fairbanks North Star Borough, the Southeast Fairbanks
Census Area, and the Yukon-Koyukuk Census Area.
(E) The Northern Region which includes the
Nome Census Area, the North Slope Borough, and the Northwest Arctic
Borough.
(F) The Southeast Region
which includes the Haines Borough, the Juneau Borough, the Ketchikan Gateway
Borough, the Prince of Wales-Outer Ketchikan Census Area, the Sitka Borough,
the Skagway-Hoonah-Angoon Census Area, the Wrangell-Petersburg Census Area, and
the Yakutat Borough.
(G) The
Southwest Region which includes the Aleutians East Borough, the Aleutians West
Census Area, the Bethel Census Area, the Bristol Bay Borough, the Dillingham
Census Area, the Lake and Peninsula Borough, and the Wade Hampton Census
Area.
(2) The authority
may, in its discretion, reallocate among the seven economic regions described
in subsection (1) the amounts of available guarantee dollars, taking into
consideration economic and other pertinent factors.
(3) The seven economic regions described in
subsection (1) are further depicted on the map set out in this subsection.
(e) Within each region, when the total
cumulative dollar amount of guarantees reaches the total amount of available
guarantee dollars allocated to the region pursuant to (d) of this section, no
further loan guarantees will be issued for loans allocated to that region. The
authority will allocate a loan guarantee to a region based on the location of
the project financed or refinanced by the guaranteed loan.
(f) The authority will allocate 10 percent of
the regional allocation to loan guarantees of $100,000 or less with respect to
new loans.
(g) The authority will
monitor the size of its guarantees to ensure compliance with
AS
44.88.540.
(h) The authority will not guarantee a loan
to refinance a loan that was originally financed by outstanding bonds issued
under the authority's loan participation programs described in
3
AAC 99.200 -
3
AAC 99.390, unless the bonds are subject to optional
redemption at par by the authority at the time the guarantee is
issued.
(i) The authority will not
guarantee a loan made before issuance of a guarantee authorization under
3
AAC 99.740(b).
Notes
As of Register 151 (October 1999), the regulations attorney made technical revisions under AS 44.62.125(b)(6) to reflect the name change of the Department of Labor to the Department of Labor and Workforce Development made by ch. 58, SLA 1999 and the corresponding title change of the commissioner of labor.
Authority:AS 44.88.080
AS 44.88.085
AS 44.88.505
AS 44.88.515
AS 44.88.560
AS 44.88.570
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