The Alaska Ship Home-Porting for Improvements Program (AK SHIP) is a financing program designed to enhance the competitiveness of Alaska’s marine transport industry. Established in 2019, this program offers short-term and bridge financing for repair, conversion, and maintenance work on commercial and industrial vessels at Alaska’s shipyards. The AK SHIP Program is available to Alaska’s fleet owners to support maintenance cycle costs and keep their vessels closer to the waters they work. Current Alaskan shipyards participating in the program are located in Ketchikan and Seward. Consideration for other Alaska shipyards is available upon request.
- Enhances competitiveness of Alaska’s shipyards compared to those in the Pacific Northwest and Lower 48.
- Reduces costs for Alaska-based commercial fleet operators.
- Offers competitive and flexible financing options and repayment terms that mirror the seasonal economic ebbs and flows of Alaska’s maritime sector.
- Ability to work with individual vessel owners around your unique business needs.
- Retains a skilled workforce in Alaska’s shipyards by providing more reliable year-round, local employment.
Financing Program Overview
||$150,000 to $1.5 million (maximum as determined by the Authority)
||Individual term notes
||6 to 24 months (maximum as determined by the Authority)
||Seasonally adjusted - Monthly or quarterly
3 to 12 months interest only (as determined by the Authority)
||Fixed or variable
US Treasury+ risk margin
(Minimum %5 p.a.)
||Application Fee: $5,500 [3 AAC 99.590(a)]
Commitment Fee: 1% less the application fee [3 AAC 99.590(c)]
Financing Process Overview
- Prospective borrower files an application with required financial information and vessel survey.
- AIDEA reviews application and determines borrower qualification, credit level, and terms.
- Loan under facility is proposed to AIDEA’s Board.
- Commitment letter with conditions is issued to borrower.
- Borrower enters into Ship Repair Contract with operator of the shipyard.
- AIDEA pays operator on completion of repairs and borrower satisfactorily meeting the conditions precedent.
If you’re interested in participating in this program or finding out more information, please contact Jesse Peterson, Senior Manager of Project Finance & Asset Management.