(a) The division of the department with responsibility for agriculture shall establish a forgivable loan program in regulation, under which a recipient’s loan may be forgiven by the department if the recipient implements a business plan approved by the department to develop or make improvements to the recipient’s farm as described in (d) of this section. A loan may be used by a recipient to fund investments in agriculture to build resiliency in the state‘s food supply. The forgivable loan program must allow a loan to be forgiven if the recipient implements the approved business plan and demonstrates a subsequent increase in food production and distribution.
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Terms Used In Alaska Statutes 03.20.200

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
(b) In administering the forgivable loan program established under (a) of this section, the department

(1) shall develop criteria for awarding a forgivable loan and a process for applying for a forgivable loan that includes requiring

(A) a forgivable loan applicant to submit a business plan that provides

(i) how the applicant will meet the criteria required by the department to approve a forgivable loan under this section;
(ii) a timeline for the applicant to meet the upgrades, construction, or expansion funded by the forgivable loan; and
(B) the department to

(i) approve an applicant’s business plan before awarding a forgivable loan;
(ii) visit an applicant’s farm, facility, or other site that would receive funding under a forgivable loan made under this section;
(2) shall require a recipient of a forgivable loan to report to the department on the use of forgivable loan funds;
(3) may make forgivable loans of up to $150,000 to an applicant for eligible farm development and improvement expenses approved by the department;
(4) shall, subject to appropriation, make the program available to applicants annually until all available funds have been distributed.
(c) A business plan approved by the department under (b)(1)(B)(i) of this section may be amended upon approval of the department.
(d) Expenses eligible for a loan under this section include expenses relating to

(1) clearing of land for agricultural purposes; and
(2) the purchase, building, installation, maintenance, or improvement of

(A) irrigation, drainage, and other water management systems;
(B) fencing, trellising, barns, greenhouses, or other farm buildings or structures;
(C) agricultural processing and farm equipment, including milking and pasteurization equipment;
(D) livestock, feed, seeds, fertilizer, and seasonal extension equipment; and
(E) bees and beekeeping equipment.
(e) A forgivable loan recipient must repay to the fund any money not spent from a forgivable loan received under this section. Forgivable loan funds used for expenses that are not eligible under (d) of this section or that are not accounted for in a recipient’s business plan approved by the department under (b) of this section must also be repaid to the fund. Any money repaid by a forgivable loan recipient shall be deposited into the general fund.
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