Alaska Small Business Development Center

Loan Guarantee Program

The Alaska Loan Guarantee Program will provide guarantees to lenders to support loans to qualifying small businesses on a case by case basis. Typically, the SSBCI guarantee amount will be up to 50% of the total loan amount.

Upon signed agreement between the lender and the Alaska SBDC that this particular loan meets the eligibility criteria for the program and the borrower is an eligible entity, the guarantee amount of SSBCI funds will be placed into a Certificate of Deposit (CD) with the lender. If the borrower fails to repay the loan, the lender can liquidate the CD and recover losses incurred. If the loan is successfully repaid, the CD is liquidated and the funds are redeployed into another loan guarantee.

The program staff will not re-underwrite the loans in this program, but rather will review the bank’s lending assessment to determine if the guarantee  support request is reasonable and conforms to the program restrictions and requirements. The lead bank is responsible for servicing, collections, and liquidation, with the SBDC receiving semi-annual and delinquency reports.

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.

By providing loan guarantees for businesses that traditionally don’t qualify for commercial loans, this program will enable lenders to deploy capital to higher risk industries and businesses using the financial security of the SSBCI program to offset their exposure and meet their internal fiduciary requirements.

By doing so, this program will unlock new economic opportunities for the state’s small businesses and Alaska’s most economically disadvantaged residents. These businesses have a variety of secondary economic benefits that will help grow local and regional economies as well that will help develop community stability and support more robust regional development. Borrowers that qualify as SEDI or VSBs will be given priority in the application process.


Contact Jon Bittner at

How To Apply

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


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