If you’re a small business owner or aspiring entrepreneur in Alaska, chances are you’ve asked yourself at some point: “How do I fund my business?” You’re not alone. Access to capital is one of the most common, and important, questions we hear from clients at the Alaska Small Business Development Center (SBDC).
The good news? There are more tools and resources available than many people realize. Whether you’re just starting out, looking to expand, or trying to build a stronger financial foundation, the SBA and the Alaska SBDC can help you navigate your options.
What Lending Looks Like in Alaska
Alaska’s small businesses are as unique as the communities they serve; from commercial fishers in Dillingham to salon owners in Fairbanks, from food trucks in Anchorage to artists in Sitka. But whether you operate in urban or rural Alaska, access to funding can be a challenge, especially if you’re unsure where to begin.
That’s where SBA-backed loans come in. While the U.S. Small Business Administration (SBA) doesn’t lend money directly, it partners with local lenders to guarantee loans, making it less risky for banks to work with small business borrowers. Some of the most common SBA loan programs include:
- SBA 7(a) Loans: Great for working capital, equipment, or business acquisition.
- SBA 504 Loans: Ideal for real estate and large asset purchases.
- Microloans: For businesses needing $50,000 or less, often with more flexible requirements.
- Community Advantage Loans: Designed to help underserved entrepreneurs who might not qualify for traditional loans.
These loan options can support everything from starting your business to buying inventory or upgrading facilities. And they’re available statewide, with lenders and partners ready to help, even in rural areas.
But SBA loans are only one part of Alaska’s lending landscape.
Across the state, small businesses also work with Alaska-based credit unions, Community Development Financial Institutions (CDFIs), and tribal or nonprofit lenders that specialize in supporting rural, Indigenous, and emerging entrepreneurs. Some key examples include:
- Spruce Root (serving Southeast Alaska with flexible loan options and business coaching)
- Alaska Growth Capital (offering tailored financing and development services)
- Cook Inlet Lending Center (focusing on underserved communities in Southcentral Alaska)
- Credit unions like Global Credit Union, Credit Union 1, and others that offer commercial loans
- Regional economic development organizations such as the Bristol Bay Development Fund and Northwest Arctic Borough’s REDO programs
These lenders often provide lower-barrier, mission-driven alternatives to traditional bank loans, and may be more familiar with the challenges and strengths of operating a business in Alaska.
Importantly, Alaska businesses and tribal enterprises also have access to State and Tribal Small Business Credit Initiative (SSBCI) programs. These federally funded programs, administered by the Alaska SBDC, provide equity investments, loan guarantees, and technical assistance to help small businesses; especially socially and economically disadvantaged businesses, access capital and grow.
The State SSBCI program partners with commercial lenders to reduce risk and increase loan approvals, while the Tribal SSBCI program directly supports Alaska Native entities and enterprises with customized capital solutions. Together, these programs create a wider, more inclusive lending landscape for entrepreneurs at every stage.
Why Financial Literacy Matters
Before you apply for a loan, it’s essential to understand your business finances. That means knowing how to build and read a cash flow statement, track your expenses, and understand your credit.
Many small business owners start with a great idea and a passion for what they do, but financial literacy is the skill set that helps keep a business running long-term. That’s why financial education is at the heart of what we do at the Alaska SBDC. Our advisors help clients:
- Build realistic startup budgets and cash flow projections
- Understand their credit reports and improve creditworthiness
- Get “loan-ready” with business plans and financial documents
- Navigate conversations with lenders and demystify lending terms
You don’t have to have a finance degree to be financially savvy. You just need the right tools and support.
General Loan Readiness
Thinking about applying for a small business loan? Make sure you’re prepared:
- A written business plan (with market analysis, strategy, and operations)
- Personal and business credit history/reports
- Up-to-date financial statements (profit & loss, balance sheet, cash flow projections)
- Personal financial statement (for owners/guarantors)
- Tax returns (2–3 years of personal and business returns, if applicable)
- Clear explanation of how much funding you need and how you’ll use it
- Business licenses, registrations, and legal documents
- Collateral (if required by the lender)
- A plan for how you’ll repay the loan
Not sure where to start? That’s what the Alaska SBDC is here for.
How the Alaska SBDC Can Help
Whether you’re ready to apply for a loan or just beginning to explore your funding options, our team is here to walk alongside you. Here’s what the Alaska SBDC offers:
- Free, confidential advising: One-on-one sessions with experienced business advisors
- Workshops and webinars: Covering topics like cash flow, credit, pricing, and bookkeeping
- Loan package preparation: Helping you get the right documents together for a smoother lending process
- Referrals to trusted lenders: Including banks, credit unions, CDFIs, and nonprofit lenders that serve Alaska
We also work closely with SBA resource partners like SCORE, Veterans Business Outreach Centers (VBOC), and Women’s Business Centers, depending on your needs.
Let’s Get Started
No matter where you are in your business journey, starting from scratch, growing steadily, or trying to pivot or recover, you deserve access to capital and the knowledge to use it wisely. At the Alaska SBDC, we believe financial literacy and smart lending go hand in hand to build strong businesses and stronger communities.
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The Alaska SBDC network and its programs, housed within the University of Alaska Anchorage, are funded by a $777,777 grant from the US Small Business Administration which is matched by $777,777 of non-federal funds.