CS FOR SENATE BILL NO. 34(L&C) - Alaska Small Business Act

• Establishes the Alaska small business revolving loan fund within the general fund to provide small, short-term loans to Alaska businesses for working capital, equipment, construction, or other commercial purposes.

• Limits loan amounts to $50,000 for individual applicants or $100,000 for two or more individuals, with maximum term of six years and interest rate capped at prime rate plus one percentage point (minimum 6% annually).

• Requires applicants to be Alaska residents for 12 consecutive months prior to application, provide 20% matching funds from non-state sources, and for loans of $35,000 or more, demonstrate denial or contingent approval from a state financial institution.

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

• Takes effect July 1, 2011, with Department of Commerce, Community, and Economic Development authorized to adopt implementing regulations under the Administrative Procedure Act.