Loan Participation

AIDEA can purchase up to 90% of a participating credit to a maximum of $25 million. This program provides permanent financing, both taxable and tax-exempt, to borrowers through a qualified originator for the purpose of developing, acquiring or enhancing Alaska business enterprises. The project being financed must be in Alaska. The loan request must be sponsored and originated by a financial institution eligible to participate in AIDEA's credit programs. The Loan Participation Program provides the benefit of long-term fixed or variable rate financing on the portion of the loan purchased by AIDEA, which may reduce the business enterprise's debt service.

Loan Participation Program Highlights 

  • AIDEA provides fully amortizing, long term financing. Terms can be up to 15 years for personal property or 25 years for real property; the maximum loan-to-value is 75%.
  • AIDEA offers either a fixed or variable interest rate.
  • The term of the AIDEA portion of the loan can exceed the bank's term, thereby lowering the scheduled payments.
  • AIDEA provides a secondary long-term market for eligible financial institutions.
  • The originating financial institution retains a portion of the loan and also services the entire loan (i.e., payments are made to the bank, not to AIDEA).
  • The project must be in Alaska.
  • 2021 AIDEA Environmental Procedure Memo.
  • 2022 Application Changes After Submission Policy.

How to Apply

  1. Contact one of AIDEA's eligible financial institutions.
  2. For lenders, complete the pre-flight form and return to Please allow up to three business days for processing.
  3. The financial institution, after its approval of the loan, applies to AIDEA for participation in the loan. For lenders, please submit your loan package to You will receive confirmation of receipt within 24 hours.  
  4. AIDEA loan officers underwrite the financial institution's loan package.
  5. The loan is submitted for approval to the AIDEA Investment Committee. If the AIDEA participation equals or exceeds $3 million, the loan must also be approved by the AIDEA Board of Directors.


A $1,100 non-refundable application fee is due at the time the financial institution submits the loan package for AIDEA consideration. The application fee is credited toward the one percent commitment fee if the borrower accepts a written commitment issued by AIDEA.

For more information concerning the Loan Participation Program, contact Tiffany Janssen at 771-3030.