AK HB389

Adds a new subsection to AS 16.10.320 allowing the department to reduce interest rates by up to 2 percent on new commercial fishing loans made under the Commercial Fishing Loan Act.

Interest rate reduction applies when at least 50 percent of loan proceeds are used for product quality improvements or energy efficiency upgrades using products manufactured or produced in Alaska.

Defines "manufactured or produced" as processing, developing, or making an item into a new item with a distinct character and use.

Requires the department to provide the interest rate reduction to all loan applicants who meet the specified criteria.

Act takes effect immediately upon enactment.