Enrolled HB 304: Relating to the Alaska microloan revolving loan fund and loans from the fund.
00Enrolled HB 304 01 Relating to the Alaska microloan revolving loan fund and loans from the fund. 02 _______________ 03 * Section 1. AS 44.33.960(a) is amended to read: 04 (a) For an applicant to be eligible for a loan under AS 44.33.950 - 44.33.990, 05 the applicant shall 06 (1) be a resident of the state, as determined under (b) of this section; 07 (2) provide a reasonable amount of money from other nonstate sources 08 for use on any project or enterprise for which money from a loan will be used; and 09 (3) if the requested loan amount is more than $35,000 [OR MORE], 10 provide to the department a document from a state financial institution stating that 11 (A) the applicant has been denied a loan for the same purpose; 12 or 13 (B) a loan from the financial institution is contingent on the 14 applicant also receiving a loan from the fund. 15 * Sec. 2. AS 44.33.965(b) is amended to read:
01 (b) A loan under AS 44.33.950 - 44.33.990 02 (1) may not exceed a term of 12 [SIX] years, except for extensions 03 under AS 44.33.955; 04 (2) may not bear interest at a rate greater than the prime rate, as 05 defined in AS 44.88.599, plus two [ONE] percentage points [POINT], but that 06 [WHICH] may not be less than four [SIX] percent a year or more than eight percent a 07 year; 08 (3) must be secured by collateral acceptable to the commissioner; and 09 (4) may not be made to a person who has a past due child support 10 obligation established by court order or by the child support services agency under 11 AS 25.27.160 - 25.27.220 at the time of application. 12 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 REPORT TO LEGISLATURE. The Department of Commerce, Community, and 15 Economic Development shall provide a written report to the legislature on the activity, 16 effectiveness, and suggestions for improvement of the Alaska microloan revolving loan fund 17 established under AS 44.33.950. The Department of Commerce, Community, and Economic 18 Development shall deliver the report to the senate secretary and the chief clerk of the house of 19 representatives not later than January 15, 2022, and notify the legislature that the report is 20 available. 21 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 APPLICABILITY. AS 44.33.960(a), as amended by sec. 1 of this Act, and 24 AS 44.33.965(b), as amended by sec. 2 of this Act, apply to applications for loans under 25 AS 44.33.950 - 44.33.990 made on or after the effective date of this Act.