CS for House Bill No. 412(FIN) Summary

• Establishes the Alaska Microloan Revolving Fund within the Department of Commerce, Community, and Economic Development to provide loans for commercial purposes to eligible Alaska residents.

• Allows loans of up to $35,000 to a single person or up to $70,000 to two or more persons, with maximum six-year terms and interest rates between 6 percent and prime rate plus one percentage point.

• Requires applicants to be Alaska residents for 12 consecutive months before application and to provide reasonable non-state funding contributions toward their projects.

• Prohibits loans to persons with past due child support obligations and requires all loans to be secured by collateral acceptable to the commissioner.

• Takes effect July 1, 2010, with the Department authorized to immediately adopt necessary regulations under the Administrative Procedure Act.