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10 Best Small Business Loans in Alaska

Key Terms

Small business loans are a common way for companies to raise funds at all stages of their establishment and growth.
Numerous types of small business loans exist in Alaska, including Small Business Administration (SBA) loans, bank loans, equipment financing, and lines of credit.
Borrowers should consider their credit score along with the ability to repay these loans before choosing a loan, with careful attention paid to the actual terms and conditions.

Alaska is a beautiful state with so much to offer, from a natural wilderness to one of the largest maritime industries. Though much of the state is remote, which is why it is often called The Last Frontier, there are exceptional communities throughout it often with a foundation of small businesses. The state is noted for its tourism-based economy, as well as agriculture and fishing. For those planning to start a business here or grow one, there are many reasons to do so.

Small businesses are not new in Alaska. In fact, the state has fewer larger companies and organizations than most other states in the country, thanks to its more remote location. According to the U.S. Small Business Administration, there are 74,587 small businesses in the state. More so, of the 736,000 people that live in the state, 138,517 people work for small businesses alone. That is a large percentage of the population working closely with these businesses – and many economies depend on those businesses to support those workers.

It’s always a good idea to have an idea of what type of business loans exist in the state. The most recent three years of data provided by the U.S. Small Business Administration shows that there have been 309 loans issued through this program to companies in the state. The average size of those loans was $734,331. There’s no doubt that these loans can prove to be highly valuable to those who need them, and they help to solidify the economy locally.

Show Me Lenders

How small business loans work in Alaska

A small business loan is a form of capital that can help a business in many ways. Lenders offer these loans, typically to an existing business, as a way to help the company to grow and expand. You can also tap into loans for startups as well. Lenders take on a significant amount of risk when lending to small businesses, especially if the business is not yet well established.

Yet, thanks to federal loan programs and support, many of these loans remain very affordable to companies. Cash flow is a common concern for many new businesses, no matter where you’re starting in Fairbanks, Juneau, or somewhere else. If real estate loans, credit cards, or business grants aren’t covering the full amount of what you need, consider other financing options.

Small business loans in Alaska are much like other loans in that they tend to have a set term for repayment. You will also be charged an interest rate. When you make payments on the loan, you will pay a portion of what you borrowed as well as interest, for a set number of years until the debt is repaid in full. Most of the time, these loans can be between 5 and 10 years, and sometimes longer, though it is very much dependent on the type of loan you secure. Lenders may be willing to work closely with you to help structure a loan that fits your needs.

To provide you with a loan, lenders may want to be sure your business has the financial means to repay it. They may require a business plan as a starting point. This plan outlines everything about your business, including what it is, what it does, who runs it, and what your expenses are. It also provides insight into competitors and your goals. This information helps lenders to recognize if the loan terms are right for your needs and if your company has the revenue to support repayment.

Even if you are not sure that is the case, many small business lenders are willing to talk to you to work out terms to get you started as an entrepreneur. Depending on what your business needs, various lending institutions are out there that can help small business owners. If you want to open a business in the state of Alaska, doing your research on business financing loan options is a great way to start.

It is likely that your personal credit score will play a role in obtaining a business loan, depending specifically on how well established your business is. It is a good idea to have strong credit when applying and, when possible, numerous years of business history, as this allows lenders to take a look at your financial records. That information could help lenders make the decision to work with you or not, depending on how much risk is provided.

Trying to take out more credit cards, putting pressure on your debit card, business lines of credit, or other business resources may not be an option.

The good news is that there are numerous types of loans available to you today, and you may wish to consider more than one when applying. Some of those options include:

Traditional bank and credit union business loans
SBA loans
Business term loans
Loans for equipment financing
Lines of credit
Secured loans on real estate

Most businesses will not qualify for all types of loans, but Alaska small business lenders are typically more than willing to work closely with a well-qualified borrower to help you find a loan that fits your specific needs and goals. They want to help you have the capital needed to grow your business. Look into loans that might be specific to your kind of business or business needs, too, such as commercial real estate loans, commercial fishing loans, and other financing options. Bear in mind that disaster loans from places like SBA.gov are typically only available to people who are already in business at the time a disaster strikes.

10 Biggest small business loan lenders in Alaska

Alaska small business loan lenders ranked by loans issued in the state.

Rank	Bank Name	# of Alaska Loans	Avergage Interest Rate	Average Loan Size
1	Northrim Bank	40	5.1%	$764,110
2	Wells Fargo Bank	13	6.3%	$463,054
3	Alaska Growth Capital BIDCO	12	6.0%	$513,000
4	Newtek Small Business Finance	12	5.9%	$711,867
5	KeyBank	11	5.7%	$214,564
6	Live Oak Bank	4	5.3%	$1,950,000
7	SaviBank	4	5.8%	$2,623,625
8	Enterprise Bank & Trust	3	5.2%	$387,600
9	BayFirst National Bank	2	5.5%	$741,000
10	Berkshire Bank	2	6.0%	$2,100,000

Get Small Business Loan Quotes

1. Northrim Bank

Northrim Bank was started in December 1990 with $8 million in capital as a small community bank in Alaska. Northrim Bank now has branches that go from Fairbanks to southeast Alaska to meet the needs of its customers and over $2 billion in assets to help them meet their needs.

We reached out to Northrim Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

While the bank offers small business products, we weren’t able to verify their experience with SBA loans specifically. If you are interested in working with them, we suggest reaching out and contacting the bank directly.