Applications for small businesses and nonprofit grants to be accepted starting Monday, state says

Credit Union 1 will begin accepting applications for state grants to small business and nonprofits to help tide them through the COVID-19 economic emergency, according to the state Department of Commerce, Community and Economic Development.

The department is partnering with the Alaska Industrial Development and Export Authority, the state development finance corporation on the program, and have contracted with Credit Union 1 to administer applications for the new program, which is called AK-CARES.

“Grants through the AK CARES program will provide the funds necessary to keep thousands of Alaska’s small businesses in operation through this pandemic,” said Gov. Mike Dunleavy.

The purpose of the program is to provide emergency relief grants to small businesses that were unable to receive support from the SBA Paycheck Protection Program (PPP), or the federal Economic Injury Disaster Loans other federal funding programs under the federal CARES Act.

Also, up to 20 percent of funds available through this program will be set aside for the needs of businesses in remote Alaskan communities that have fewer than 5,000 residents.

AK CARES grant amounts will range from $5,000 to $100,000 per business and will be issued on a first-come, first-served basis. Eligible businesses must be based, licensed, and located in Alaska. Credit Union 1 will begin accepting applications on June 1 through their website. AK CARES applicants do not need to be current members of Credit Union 1.

Grant proceeds are to be used for COVID-19 emergency related expenses. Repayment of AK CARES funding will not be required.

“The AK CARES Funding Program allows us to extend Credit Union 1’s people-first philosophy to local business owners who need a life line right now,” said James Wileman, President and CEO of Credit Union 1.

In briefings to legislators, AIDEA officials said they expect to see $150 million to $250 million distributed in grants to 3,500 to 5,000 businesses and nonprofits. While Credit Union 1 is handling the initial rollout, AIDEA may be contracting with additional institutions for subsequent phases, officials told legislators.

Credit Union 1 will assess a 3 percent fee for handling the application,

For more information on the AK CARES Funding Program, including eligibility requirements, eligible expenses, and the information required to support an application package, please visit the AK CARES Grant website.