Financial Assistance for Alaskan Businesses
Well Alaska, it does not look like the tourism industry is going to pick up. I know we were all hoping Covid-19 would disappear so we could, at least partially, reclaim our summer. I know there are a lot of Alaskan businesses that are afraid of the coming winter as the summer is what carries us through. There are still some options for assistance so don’t give up yet.
As business owners, we don’t give in easily to pressure, as Alaskan business owners we thrive on it! We pick ourselves up, get resourceful, and move forward fearlessly.
So from one Alaskan business owner to another, here are some resources to keep you on your feet as we weather this storm.
Paycheck Protection Program Loan (PPP Loan)
There is a lot of discussion around the PPP Loan, so here are the main things you need to know. Alaskan businesses can still apply for funding through August 8, 2020.
You can submit applications via local banks, such as:
First National Bank Alaska
Alaska USA Federal Credit Union
Denali - A division of Nuvision Credit Union
In addition to applying through your local bank, Alaskan businesses can submit applications via online locations, such as:
What is Required
Applying for the PPP Loan online is a quick process that is not going to require too much of your time. Generally, you will need to provide:
Average monthly payroll costs
Some basic business information. This will be very general like your business name, tax ID number, phone, and address.
General questions about the business owners background and citizenship status
A good faith certificate. This simply states how you have been impacted by the coronavirus pandemic and need funding due to the pandemic.
The application itself is a pretty quick and painless process. However, if you are running into issues, please contact us and we would be happy to work those out with you.
EIDL Loan
Also, the SBA is still accepting applications for the EIDL loan. This is a 30-year loan at 3.75% interest. The funds are not a regular loan. There are extremely specific costs that the money can be spent on.
Below you can find some of the allowable costs, but please make sure you are fully aware of the allowable usage before committing to the loan.
Health care benefits
Rent
Utilities
Fixed Debt Payments
While this does not cover all the allowable expenses under the EIDL loan, you do want to confirm it would be a good fit for you. If you are unsure, you can find out more about the loan here or contact us to see what loan would be most beneficial.
AK Cares Grant
Finally, there is the AK Cares Grant that can be applied for. If you have not received the PPP Loan or the EIDL, you can apply online for an AK Cares Grant at Credit Union 1.
The grant, if approved, could reimburse you for allowable expenses paid from March 11, 2020, to the time of application. PLUS allowable expenses for the following 8 weeks.
According to the Credit Union 1 Website, some of the allowable expenses include:
Payroll costs and expenses
Rent or mortgage payments (unless otherwise waived by lessor/lender)
Payment of any short term (less than 24 months) or credit debt incurred by the applicant to support the applicant’s business during the emergency
Utilities payments
Purchase of personal protective equipment required by the business
Business-related equipment
Expenses incurred to replenish inventory or other necessary re-opening expenses
This is a great option for those who need a bit of help during this time or an essential business that is trying to keep their customers and employees safe.
It is my wish that this information gives you hope for the survival of your business. There are several great programs out there that may be exactly what you need to make it through.
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