Financing Options for Your Business

We offer a variety of bank financing options, and we work closely with agencies such as the Small Business Administration and the Alaska Industrial Development and Export Authority, to ensure you get the best financing possible for your business.

Put Our Experience to Work for You

At Alaska Pacific, we have a level of experience and expertise that is highly respected within the industry. Our experienced, knowledgeable staff will be a resource to you every step of the way. We know the Southeast Alaska markets, and as a local lender, we can make decisions quickly.

Applying for Your Business Loan

We have provided an outline to help you prepare for your initial loan meeting, and you can download our application and financial statement. We encourage you to contact our Commercial Lending Department in Juneau, Ketchikan, or Sitka, so we can answer your questions and help you present the strongest case possible for your loan request. 

Credit Lines

Business Credit Lines

We offer competitive rates and flexible terms on revolving lines for everything from operating capital to inventory and accounts receivable.

A Business Line of Credit can provide your business with the flexibility to access capital as it's needed, or it can be used as a flexible source of cash for your ongoing core business operations. Lines of credit are generally reviewed and evaluated for renewal on an annual basis. For ongoing and growing businesses, continual reliance on bank financing for working capital is customary. With a line of credit in place, you may borrow, repay, and borrow again throughout the life of the loan.

Advantages of a Business Line of Credit

• The money is available when you need it.
• There is no need to reapply for a new loan each time you need funds.
• Interest on your line of credit doesn’t accrue until funds are used.
• You may borrow, repay, and borrow again, up to the original amount of the line available.
• You can borrow against it to take advantage of supplier discounts, to cover unexpected expenses, or to manage your cash flow.

Lines of credit are often best used for short-term financing needs, such as financing your business receivables, or for short-term working capital.

Unsecured Business Lines of Credit are available for qualified borrowers, who have the cash flow available to be out of debt for a portion of the year.

Convenience Lines

For overdraft protection, an unsecured Convenience Line is available in amounts ranging from $1,000 to $10,000.  It can give your business added financial flexibility. This line is accessed through your Alaska Pacific Bank Business Checking account and automatically protects your account from overdrafts.

Flooring Lines

Alaska Pacific Bank can provide financing for certain types of inventory purchases that you make for items that you carry for re-sale (automobiles, boats, marine equipment, and more).

Inventory flooring financing, may be an option for your business; we purchase your inventory for you and use the inventory as collateral. As you sell your inventory, you pay down your line and those items are released for sale. New items can be added throughout the year.

Credit Cards

Our low interest Business Visa® is ideal for all your short-term financing and corporate travel needs.

Corporate or business credit cards are just one more tool that we can provide to help your business succeed. If you are using personal or non-revolving travel/entertainment cards for business-related expenses, or if your business relies on petty cash or cash advances for routine supply or equipment purchases, then let us show you how our Business Visa card can save your business time and money.

Advantages of our Business Visa Card

• Pre-set spending limits at the cardholder level
• Low annual fee
• An attractive revolving rate
• Detailed reporting feature; monthly statements streamline expense tracking
• Hotel/Motel Discount Program
• Purchase Security and Extended Protection
• Corporate Liability Waiver Program
• Worldwide VISA acceptance
• Comprehensive travel benefits
• Toll-free, 24-hour customer service
• Instant ATM Access to funds
• Emergency cash and card replacement

Loans

Business Term Loans

Low rates and flexible terms make it much easier to purchase machinery, vehicles, and equipment for your business.

Purchases can include all types of equipment, heavy-duty trucks 2.5 tons and up, computers, machine tools, boats, and aircraft

Business Term Loans provide a set amount of capital for a particular need. These loans are funded all at once and then paid back over a specified length of time. They are an excellent way to finance your long-term business needs.

Advantages of a Business Term Loan

• Alaska Pacific Bank can creatively structure loan repayments to correspond with your seasonal business cycles.
• Term loans offer the most attractive rates and fees compared to other forms of financing.
• These loans strengthen your competitive position by allowing you to expand your business, acquire new equipment, upgrade equipment, or purchase assets necessary for business growth.
• Provides excellent source of working capital to fuel rapid growth.

Unsecured Term Loans are available to qualified borrowers, but require shorter repayment terms.

Vehicle Loans

Our business vehicle loans can help you buy new or used cars, vans, or trucks less than 2.5 tons for your business.

Features and Benefits

• Borrow up to 100% of the vehicle’s purchase price, depending on collateral, age of the auto, and borrower's financial strength
• Quick approval process saves you time
• Loan terms up to five years on most vehicles
• Terms up to six years are available on autos with a Manufacturer's Suggested Retail Price, or MSRP, over $25,000.

Real Estate Loans

We offer quick, responsive financing for purchase, refinance, or construction of office buildings, apartments, retail buildings, industrial buildings, medical/dental offices or warehouses. Options include owner-occupied or income-producing financing, interim, or permanent financing.

We can help you finance your real estate project with a commercial real estate loan that involves any of the following:

• Term loan to purchase a new building or expand existing facilities
• Refinance your building to obtain better rates and terms and/or to improve cash flow
• Short-term "bridge" loan to help during construction
• Long-term financing on non-owner-occupied, multi-family income properties
• Land development financing as part of a larger real estate development project
• Construction financing on new business location or expansion project

Construction Loans

Alaska Pacific Bank offers commercial construction loans with competitive terms and rates to facilitate the building of your commercial, retail, or residential development project.

Our Loan Officers have many years of experience in commercial construction. We can incorporate the purchase of the land as part of the construction loan, which can save you time and money.

Some of the Typical Construction Projects We Finance

• Office buildings
• Retail businesses
• Residential subdivision acquisition and development
• Multi-family projects of five units or more
• Residential investment property, both owner-occupied and non-owner-occupied, of between one and four units
• Loans to contractors and developers for 'pre-sold' and 'spec' homes

Each construction project is unique. There are, however, certain items that will be needed that are common to each project. These items would include:

• A detailed set of building plans
• An itemized cost breakdown prepared by your general contractor or a similarly qualified professional. This cost breakdown should cover all aspects of the project, from site preparation through the finish work and project completion.
• If you already have purchased the land upon which your project will be built, please provide current information on the land regarding its value (previous appraisal or current city assessment, if available) and how much, if any, is still owed against the land.

Most projects will require additional items depending on the type of project. Please contact an Alaska Pacific Bank Construction Lender for more details.

SBA Guaranteed Loans

We work closely with the Small Business Administration to provide our business customers with access to their great financing options. In fact, we are a leading SBA lender in the State of Alaska, and are here to help customers who may qualify for these loans.

If you have a new company, or you’re expanding an existing one, if you don’t have sufficient collateral to get your business in shape, or you can’t meet traditional lending criteria for some other reason, we can work with you to explore your options for SBA financing.

SBA loans are a special form of financing backed by the United States Government to help small businesses obtain the funding they need for permanent or seasonal working capital, accounts payable, inventory, leasehold improvements, machinery, equipment, the purchase of real estate, building renovation, construction, and more. SBA funds can also be used to start up a new business or to acquire or expand an existing business.

As experienced SBA lenders, and winners of the 2007 Region X Pinnacle Award from the SBA in recognition of our commitment to small business financing, we have the knowledge and experience to select the right SBA product for your business and to help you get your loan approved.

SBA 7(a) Term Loans
This loan program can help companies that are just beginning operations, that are expanding their existing operations, or that don’t meet traditional lending criteria for other reasons. Loan amounts can be as high as $2 million, with terms as long as 25 years, if the loan is for real estate.

SBAExpress Loans
These programs, technically part of the SBA 7(a) program, offer a streamlined application and closing process and are approved by Alaska Pacific Bank Loan Officers without having to go through the extra step of an SBA review.  In addition, the SBA allows for unsecured loans under these programs, with dollar limitations that vary by program.

Three types of loans are included in this program, each with different loan limits:

• SBAExpress is designed to reduce the cost for smaller, less complex loans.  It has a maximum loan amount of $350,000.

• Community Express was developed for business owners operating in low-to-moderate income areas, rural areas (which includes all of Southeast Alaska), and minority- and women-owned businesses.  This program has a maximum loan amount of $250,000, and the business owner is required to get Technical Assistance Training from the Alaska Small Business Development Center.

• Patriot Express is designed for the military community and has a maximum loan amount of $500,000.  At least 51% of the business must be owned by a veteran (honorably discharged), active duty military personnel eligible for the military’s TAP, a Reservist, a member of the National Guard, or a spouse/widow/widower of one of these types of military personnel.

SBA 504 Term Loans
This is a long-term loan to help businesses obtain funds for land, buildings, machinery, and equipment with a minimum useful life of 10 years.  In general, the bank funds 50% of a project, the SBA, through a Certified Development Company, funds an additional 40%, and the borrower provides a 10% equity contribution (this requirement can be higher with special-purpose properties or start-up companies).  The SBA offers variable- or fixed-rate options and a maximum 20-year term.

Because SBA loans must be written to government standards, businesses must qualify to receive financing under their programs.  SBA borrowers must be for-profit and meet the established size standards, and there are some types of businesses that will not qualify for SBA financing.  See one of our experienced SBA lenders to decide if SBA financing is the right option for you.

Alaska Industrial Development and Export Authority (AIDEA) Loans

AIDEA's mission is to encourage economic growth and diversification in Alaska. As part of our commitment to bringing a variety of financing options to our customers, we participate with AIDEA on qualifying loans.

AIDEA Loans are available for financing of new or existing projects, or the refinancing of an existing loan. These funds can be used for the purchase or refinance of commercial real estate and/or equipment. Possibilities include a wide variety of commercial facilities—office buildings, warehouses, retail establishments, hotels, commercial vessels, and manufacturing facilities. 

Loan Amounts, Terms

• New construction requests may be up to the lesser of 90% of the cost to construct or 75% of appraisal. Loan terms can be as up to 15 years for personal property and 25 years for real property. 
• The AIDEA interest rate is determined weekly and is fixed at the time AIDEA the loan closes and funds.
• Replacement reserves may be required depending on type and condition of collateral.
• AIDEA Loans require the taking of a First Deed of Trust on the subject property and/or a primary UCC security position on personal property.

Fees, Taxes, and Insurance

• A $1,000 non-refundable fee must be submitted with the loan request package, which is applied toward the total loan fee, if AIDEA approves the financing.
• AIDEA charges a 1% fee on their portion of the loan; Alaska Pacific fees are negotiated.
• There is a prepayment penalty associated with the AIDEA portion of the loan.

For more information, or if you'd like to discuss a potential loan, please contact Leslie Dahl or Tom Sullivan in our Juneau Commercial Lending Department.

Home Equity

Home Equity Loans and Lines

An inexpensive, tax-deductible* home equity loan or line of credit on personal residential property can be a smart, simple way to launch a small business, or to grow an existing one.

Home Equity Loan
Our Home Equity Loan can help you take advantage of the investment you’ve made in your home by financing a new or growing business at today’s low interest rates. Borrow up to 85% of the assessed or appraised value of your home for business investment. 100% financing available to qualified borrowers.

Equity Access Line of Credit
Our Equity Access Line of Credit enables you to access cash when you need it… for just about any business expense that could come up. The investment you’ve made in your home can be your source of funds to achieve your business goals. Borrow up to 85% of the assessed or appraised value of your home for business investment.  Our low, competitive rates and special options make our Equity Access Line of Credit a more attractive solution than most credit cards or other borrowing options.

• The money is available when you need it. There is no need to reapply for a loan each time you need funds.
• Interest on your line of credit won't accrue until funds are used.
• You may borrow, repay, and borrow again, up to the original amount of the line