Alaska Small Business Development Center

Collateral Support Program

The Alaska Loan Collateral Program will extend cash collateral to lenders to support loans to qualifying small businesses on a loan by loan basis. The Alaska Loan Collateral Program helps small businesses in Alaska with fewer than 750 employees access loans that they would otherwise not be eligible for because they do not have enough collateral.

This credit enhancement uses small amounts of SSBCI funds to encourage private lenders to loan money to businesses. The program will provide a cash deposit as collateral for a business loan or credit facility when the business cannot meet the lender’s collateral requirements. The collateral will be in the form of a CD deposited with the lending institution.

Lenders can apply for up to 25% of the loan amount in collateral to support business loan applications. The maximum loan size for this program is $5 million. Collateral guarantees are expected to average around 20% of the loan amount, ranging in size from $25,000 to $250,000.

The program staff will not re-underwrite the loans in this program, but rather will review the bank’s collateral assessment to determine if the collateral support request is reasonable and conforms to the program restrictions and requirements. The lead bank is responsible for servicing, collections, and liquidation, with Alaska SSBCI receiving semi-annual and delinquency reports. The CD plus interest will be returned to the Alaska SSBCI at loan maturity.

In the event of default, if the borrower’s assets needed to be liquidated, this CD would be available to the lender to cover some of their loss, up to the amount of the CD/Collateral.

This program is expected to be particularly useful for businesses that traditionally have had difficulty collateralizing their assets such as commercial fishing, tourism, restaurant and similar sectors. These funds will give those businesses access to new forms of capital that they otherwise would not be able to secure, allowing them to grow and further improve the state’s economy while creating new jobs and opportunities.


Contact Jon Bittner at

How To Apply

A lenders application link will be posted here in January, 2023.


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