HB 121 Summary

• Establishes three new revolving loan funds in the Department of Commerce, Community, and Economic Development: Commercial Charter Fisheries Revolving Loan Fund, Mariculture Revolving Loan Fund, and Alaska Microloan Revolving Loan Fund

• Commercial charter fisheries loans support purchase of charter halibut permits and refinancing of vessel/gear debt, with loan limits of $100,000 annually and maximum 15-year terms at prime rate plus two percentage points (6-10.5% annually)

• Mariculture loans fund planning, construction, and operation of shellfish and aquatic plant farms, with maximum $100,000 annually, 20-year terms, and interest rates between 5-9% annually, plus optional 6-year principal and interest deferment

• Alaska microloan fund provides loans up to $35,000 for individuals or $70,000 for groups for business working capital, equipment, and construction, with 6-year maximum terms and 6-8% annual interest rates

• All three loan programs require applicants to be Alaska residents, restrict loans to those with past due child support obligations, and establish foreclosure expense accounts; community quota entity loan provisions sunset June 30, 2017