Fianacial Assistance

Financing a small business in an emerging industry in rural Alaska can be a daunting task.  Unless you have a lot of assets that can be used as collateral, the prospect of convincing a mainstream financial institution to lend you money for your farm can be described as minimal to nil. 

One of the biggest problems in seeking a traditional business loan is the lag between the time you plant and harvest a crop of shellfish.  Most small business loans must be repaid in three years, and payments start almost immediately.  This is an obvious problem for most aquatic farming businesses.

One of the best financing options is a loan from the USDA Farm Services Agency.  Potential applicants are required to have experience in the business and be unable to obtain financing through a traditional lending institution.  FSA has programs for operating loans, refinancing a farm, and starting a new farming business.

Farm Service Agency
http://www.fsa.usda.gov/FSA/webapp?area=home&subject=fmlp&topic=sfl

 

The State of Alaska also has programs that farmers might be able to tap into.  Visit the webpage for the Alaska Department of Commerce’s Alaska Small Business Assistance Center to view the options.