Alternative Energy Conservation Loan Fund

Summary

The Division of Economic Development in the Department of Commerce, Community, and Economic Development is providing loans to purchase, construct and install alternative energy systems or energy conservation improvements in commercial buildings. The program defines an alternative energy system as a source of thermal, mechanical, or electrical energy that is not dependent on oil, gas, or nuclear fuel for the supply of energy for space heating and cooling, refrigeration and cold storage, electrical power, mechanical power, or heating of water. Applicants must be Alaska residents for the 12 months prior to the date of application to be eligible. If the applicant is a partnership or corporation, each individual owning an interest must complete an application, and those with a 20% or greater ownership stake must complete a residency questionnaire and a financial statement. 

The maximum loan amount is $50,000. Applications for loans over $30,000 must include a letter of denial from a financial institution stating the reason for denial, or specifying that the loan is contingent upon receiving additional funds from the state fund. The maximum loan term is 20 years. 

The interest rate will be fixed at the time of loan approval and current rates can be found on the program website. All loans must be adequately secured, and include a lien on real property and the improvements financed. A $100 application fee (non-refundable) must accompany all applications. A 1% origination fee is due at closing. The borrower is responsible for paying all direct costs incurred in processing an application, including title reports and title insurance, recording fees, appraisals, travel or other direct costs.