BUSINESS & COMMERCIAL

USDA loans

Consider a loan guaranteed by the United States Department of Agriculture (USDA) for a new location or the latest equipment to help your business grow.

What is a USDA loan?

Alaska USA has partnered with USDA to offer loans for businesses located in communities outside the Municipality of Anchorage. The loans are guaranteed by the USDA and can be secured with accounts receivable, inventory, equipment, furniture and fixtures, or real estate. The purpose of USDA loans is to create and maintain employment and improve the economic climate in rural communities.

Why should I consider a USDA loan through Alaska USA?

Alaska USA has a long history of providing members with the products and financial services that allow them to meet all their financial needs.

Alaska USA extends this tradition to businesses as well, by offering products with competitive rates and fees, and excellent service.

Through its partnership with the USDA, Alaska USA is able to provide business members with larger loans that have longer maturity periods than typical term loans.

What amount of financing can I get?

The amount of financing depends on your qualifications. The minimum is $5,000 and the maximum is $10 million. Loans up to $5 million are 80% guaranteed and loans between $5 million and $10 million are 70% guaranteed.

What are the loan terms?

Terms are based on guidelines set by the USDA and vary according to the loan type:

Working capital loans - Seven years

Machinery and equipment - 15 years or useful life, whichever is less

Real Estate - Up to 30 years

Are there prepayment penalties?

No. Pay your regular monthly payment or pay in full at any time without a penalty.

Is autopay available?

Yes. You may choose to set up autopay from another Alaska USA account to ensure that your loan payment is made on time.

What kind of fees can I expect?

Depending on the type of loan, there are commitment fees and third party fees. In addition, late payment fees are assessed to all term loans.

How do I apply for a USDA loan?

Apply in person at any branch or financial center, call for an application, or download one from www.alaskausa.org.

Phone: 646‑6670 in Anchorage, (877) 646‑6670 outside Anchorage • 450‑1581 in Fairbanks, (877) 374‑5453 outside Fairbanks.

Additional contact information can be found online.

For requests greater than $100,000, the following paperwork is also necessary:

Copy of business license, Partnership Agreement, Articles of Organization and Operating Agreement (LLC), Articles of Incorporation, and Bylaws (Corp)

Past three (3) years complete business tax returns and past two (2) years personal tax returns

Most recent year-end personal and business financial statements, including a balance sheet and profit and loss statement

Current interim financial statement, including a balance sheet and profit and loss statement

Copies of any pertinent lease or contracts

For new or expanding businesses, a detailed business plan that includes projected income and expenses for the next 12 months

If buying property, earnest money agreement and purchase invoices

If buying or offering real property as collateral, legal description of the property and copies of any previous appraisals and environmental reports

Highlights

Get up to $10 million in financing through Alaska USA's partnership with the United States Department of Agriculture loan program.

Loans may be secured with cash, equipment, inventory, furniture and fixtures, or real estate.

AKUSA 02633-I R 11/27/07