AK HB120

Creates a new markets tax credit assistance program within the Alaska Industrial Development and Export Authority (AIDEA) allowing the authority to guarantee loans and make direct leveraged loans for qualifying projects.

Limits assistance to projects within Alaska that have been allocated new markets tax credits by a qualified community development entity and must promote economic development in the state.

Sets a combined outstanding principal balance cap of $50,000,000 for all loan guarantees and loans under the program.

Establishes loan guarantee requirements including commercial reasonableness, acceptable collateral, borrower repayment ability, and a maximum 10-year term, with the authority able to guarantee up to 100 percent of qualifying loans.

Allows AIDEA to make direct leveraged loans only when applicants cannot obtain financing from financial institutions on commercially reasonable terms, requiring documentation that at least two financial institutions have reviewed and rejected or imposed unreasonable terms on the loan application.