Alaska small business grants, loans and training funds (2026)

What each Alaska program pays, and who gets the money

Before you fill out any form, sort the program you found into one of these groups:

• Credit support from SSBCI (you repay the loan). The SBDC guarantees part of your bank’s loan or buys a share of it. The money never comes to you as a grant ⁠¹.
• Direct state loans (you repay DCCED). The Small Business Economic Development Revolving Loan Fund (SBED), the Rural Development Initiative Fund (RDIF) and the Microloan program, all run by DCCED’s Division of Investments ⁠⁶⁠⁸⁠⁹.
• Training grants (the money goes to a training project). AWIB’s State Training and Employment Program (STEP) ⁠¹¹.
• Targeted grants that are closed. The Alaska SBIR/STTR Grant Program and the International Trade Assistance Grant (ITAG) ⁠¹²⁠¹³.

A naming trap: Alaska has two programs called “STEP.” The State Training and Employment Program is a state workforce grant ⁠¹¹. The SBA’s State Trade Expansion Program, also abbreviated STEP, is the federal export program that funded ITAG ⁠¹³. If an article promises “Alaska STEP grants for exporters,” it is talking about ITAG, which is no longer taking applications.

How the SBDC’s SSBCI programs reach a borrower

Alaska is unusual: its SSBCI programs are run by the Alaska SBDC rather than a state bank or development authority ⁠¹. Alongside the State programs, the SBDC also administers a separate Alaska SSBCI Tribal Consortium worth $83.1 million: a $49.9 million loan guarantee program, a $10.3 million loan participation program and a $22.9 million venture capital program ⁠². Lending under both began August 1, 2024, and the first loan closed September 4, 2024. The program runs for 10 years ⁠².

Lenders can request a guarantee of up to 80% for borrowers affiliated with the Tribal consortium of 125 tribes, compared with up to 50% otherwise ⁠³. To qualify, a business must have fewer than 750 employees and operate in Alaska ⁠². Cannabis businesses, gaming and passive real estate are excluded. So are most refinancing and owner-equity reimbursement, and SSBCI support cannot be stacked with SBA, USDA, EDA or BIA programs on the same loan ⁠². Treasury expects the guarantee to matter most in remote communities where commercial fishing, manufacturing and tourism need expensive equipment up front ⁠¹.

You do not apply to the SBDC for an SSBCI loan. Only a participating lender can enroll a loan ⁠². The May 22, 2026 list has five State lenders, including Business Impact NW, Denali State Bank and Mt. McKinley Bank. It also lists six Tribal lenders, including Nuvision Credit Union, Spruce Root and Tongass Federal Credit Union ⁠⁵. On the equity side, AKEF’s money must be matched 1:1 by private investors, and the SBDC page says proposal reviews for new partner funds are closed ⁠⁴. An owner seeking equity pitches the partner funds, not the state.

DCCED’s own loan funds: SBED, RDIF and Microloan

The Division of Investments lends state money directly to businesses that banks will not fully finance. All three funds are repayable loans with application and origination fees.

Scroll the table sideways to see every column.

Sources: SBED ⁠⁶, RDIF ⁠⁸, Microloan ⁠⁹. Rates are fixed when the loan is approved.

SBED requires that you meet the SBA’s small business definition, generally fewer than 500 employees, net worth under $6 million and average net income under $2 million. You must put in at least 10% from other sources, and the loan may not exceed 90% of your collateral’s value. Anyone owning 20% or more must sign a personal guarantee. The Division may ask for a bank’s turndown letter ⁠⁶. Microloan requests above $35,000 likewise need a denial letter from a financial institution ⁠⁹.

SBED money has been tight. On March 31, 2025, the fund had $298,593 in cash, and the Division was warning applicants that loans might not be available. Without new capital, lending would have stopped for about nine months ⁠⁷. The AIDEA board’s resolution G25-12, amended in May 2026, moves up to $3 million from AIDEA’s revolving fund and up to $3 million from the underused RDIF (which had $5,894,703 available) into SBED. That is expected to fund 25 to 30 more loans ⁠⁷. AIDEA’s memo describes the SBED rate as a fixed 4.0% ⁠⁷. Because DCCED still says funding is limited, call before you apply ⁠⁶.

For larger projects, AIDEA’s Loan Participation Program buys up to 90% of a bank loan, to a maximum of $25 million. Terms run up to 15 years for equipment and 25 years for real estate, and your bank submits the application with a $1,100 fee ⁠¹⁰.

STEP training grants from the Alaska Workforce Investment Board

STEP is the closest Alaska comes to an employer grant, but it pays for a training project, not your operating costs. In the Program Year 2027 request for applications, grants run 12 months (July 1 to June 30), and the typical award is up to $400,000 ⁠¹¹. Eligible applicants include training centers, postsecondary schools, employers, employer consortia and industry associations, labor unions and apprenticeship sponsors, nonprofits, tribal entities and local governments ⁠¹¹.

The rules are strict. At least 50% of the grant must go to participant services such as tuition, credentials and support for trainees. STEP money cannot reimburse employer wages, subsidize payroll, or pay on-the-job-training wages ⁠¹¹. Projects should target high-demand jobs and occupations with high nonresident hire rates, and they are scored partly on employer engagement ⁠¹¹. Applications go through the state’s EGrAMS system. For the 2027 round, AWIB took written questions from March 9 to April 13, 2026, and funded projects started July 1, 2026 ⁠¹¹. A small employer usually does better joining a project run by a training provider or industry association than applying alone.

Alaska’s two business grants, and their status

Alaska SBIR/STTR Grant Program (closed). DCCED used $125,000 appropriated for FY2025 to add state money to federal SBIR/STTR awards ⁠¹². Phase I awardees, and Phase I firms waiting on a Phase II decision, could get up to $25,000. Phase II awardees could get $25,000 plus a supplement of up to $75,000, for $100,000 total. Applicants needed a principal place of business in Alaska, at least 51% of the grant work done in the state, an Alaska business license and an active SAM.gov registration. Payment is by reimbursement ⁠¹². Applications closed May 9, 2025, and as of May 2026 DCCED had posted no FY2026 round ⁠¹². Until it does, Alaska’s SBIR help comes from the SBDC’s TREND innovation funding program, reached through an SBDC adviser ⁠¹⁴.

International Trade Assistance Grant (closed). ITAG, funded by the SBA’s State Trade Expansion Program, reimbursed 75% of export costs such as trade shows, trade missions and foreign-market websites. Awards ran from $1,000 to $10,000, and the company paid the other 25% ⁠¹³. Applicants needed at least a year in business, an Alaska headquarters, products with at least 51% U.S. content and a SAM.gov UEI. DCCED’s page says ITAG is closed and no longer accepting applications ⁠¹³.

The Southeast Alaska competition worth knowing about

The only significant cash award for starting a business in Alaska comes from a nonprofit, not the state. Spruce Root, a Southeast Alaska nonprofit that is also a Tribal SSBCI lender, runs the Path to Prosperity competition ⁠⁵⁠¹⁵. It awards two $20,000 prizes each year for consulting, technical help and long-term capital spending. The 2026 cycle is limited to Southeast Alaska residents with businesses at least 51% Alaska Native-owned. Applications ran April 1 to May 31, 2026; finalists attended an Anchorage Entrepreneur Camp October 1 to 4, and business plans are due December 10, 2026 ⁠¹⁵.

Getting from first call to financing in Alaska

The Alaska SBDC is hosted by UAA’s Business Enterprise Institute and serves the whole state from seven offices. Its one-on-one coaching is free and confidential, and its SBA grant of $833,333 covers half its budget, with non-federal match covering the rest ⁠¹⁴.

1. Open a free SBDC file

   Register on the SBDC client portal and ask for an adviser. Bring your business plan, recent tax returns or projections, a collateral list and the amount you need. The adviser can tell you whether SSBCI, a DCCED loan or a training grant fits ⁠¹⁴.

2. Ask a participating lender about SSBCI

   Use the May 2026 State or Tribal lender list and ask the loan officer to apply for the Alaska Loan Guarantee or Loan Participation Program ⁠⁵. If your business is affiliated with the Tribal consortium, ask a Tribal lender about the 80% guarantee ⁠³.

3. If the bank says no, keep the letter

   A written turndown is what SBED, and Microloan requests above $35,000, may require ⁠⁶⁠⁹.

4. Call the Division of Investments before you apply

   Ring 907-269-8150 (Anchorage) or 800-478-5626 to confirm that SBED, RDIF or Microloan funds are available for your community. Then send the application with the fee: $250 for SBED, $150 for RDIF, $100 for Microloan ⁠⁶⁠⁸⁠⁹.

5. Line up your 10% and collateral

   SBED wants at least 10% from other sources, a loan no more than 90% of collateral value, and personal guarantees from 20% owners ⁠⁶.

6. For staff training, join or build a STEP project

   Contact a training provider or industry association and watch AWIB’s site for the next request for applications. Send questions to [email protected] ⁠¹¹.

7. Reapply or switch routes if denied

   An SSBCI decision is the lender’s credit call, so you can try another listed lender. A DCCED denial can be revisited once funds or your collateral position improve. For SBIR or export help, ask the SBDC whether DCCED has reopened either grant ⁠¹²⁠¹³.

For other Alaska assistance, see the Alaska overview, or compare states on the small business grants hub.