Legislature(2017 - 2018)

2018-01-24 Senate Journal

Full Journal pdf

2018-01-24                     Senate Journal                      Page 1813
SB 157                                                                                                                        
SENATE BILL NO. 157 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
              "An Act relating to the Alaska microloan revolving                                                               
          loan fund and loans from the fund."                                                                                   

2018-01-24                     Senate Journal                      Page 1814
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Commerce, Community                                                                     
  and Economic Development                                                                                                      
Governor's transmittal letter dated January 23:                                                                                 
Dear President Kelly,                                                                                                           
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the Alaska microloan                                                         
revolving fund.                                                                                                                 
The Alaska microloan revolving fund exists to assist state residents                                                            
with small business venture loans to facilitate entrepreneurial                                                                 
enterprise throughout the state, with a specific policy emphasis on job                                                         
creation in rural communities.                                                                                                  
This bill would improve the program by allowing a loan term for up to                                                           
15 years (as opposed to the current six years) and increase the interest                                                        
rate from one percentage point above the prime rate to two percentage                                                           
points above the prime rate. Further, the minimum interest rate would                                                           
be modified to not less than four percent a year (rather than the current                                                       
six percent a year). The maximum interest rate would remain eight                                                               
percent a year.                                                                                                                 
These changes will allow the program to incentivize the startup and                                                             
expansion of small and micro businesses, growing the small business                                                             
sector while still protecting the state’s financial interests.                                                                  
I urge your prompt and favorable action on this measure to create a                                                             
Stronger Alaska.                                                                                                                
Bill Walker