Need to expand? Move? Offer a new product? Banks across Alaska can help.

• Author: Hardan-Smith, Sara J.
• Position: Financing Options For Small Businesses

Small businesses in Alaska have many financing options when it comes to improving or expanding their businesses.

Small businesses make up a large percentage of the Alaska market. The Small Business Administration has established a size standard for most industries in the economy. The most common size standards for small businesses are:

* 500 employees for most manufacturing and mining industries.

* 100 employees for all wholesale trade industries

* $6 million for most retail and service industries

* $28.5 million for most general and heavy construction industries

* $12 million for all special trade contractors

* $250,000 for most agricultural industries

If your business fits into one of these six categories, then Alaska banks have various programs to help you start a business or make it flourish. (This article includes only a sampling of financial institutions.)

FIRST NATIONAL BANK ALASKA

Bill Inscho, vice president, commercial loans, at First National Bank Alaska, said the bank offers a wide variety of loan and deposit products.

"We cater to all sizes of business entities," he said.

Various small-business loans the bank offers include:

* Equipment loans: Used for purchasing new or used equipment. Repayment is typically from one to five years.

* Vehicle loans: A loan similar to an individual buying a car, just on a commercial scale.

* Real estate loans: A loan similar to a home loan, but with the nuances of a commercial loan. The bank not only underwrites the credit worthiness of the borrower, but also looks at the location and access to make a qualification decision.

"Sometimes the properties themselves don't qualify," he said.

* Accounts receivable loans: The bank loans the business money against the receivable the business is owed. When the business is paid, the bank is repaid.

Inscho said that type of loan is suited for companies who need more working capital during the busy months.

"In Alaska, that is typically the summer months," he said.

* Inventory loans: The bank looks at past sales trends of the business and gives a loan for inventory based on past sales. As the inventory is sold, the loan is repaid.

"One of our jobs as a bank is to properly structure a loan to fit the customer," he said.

* Revolving lines of credit: The loan serves as working capital--the money used to keep a business running. The loan is good for one year and the business can borrow up to the maximum amount approved at any one time. Once the amount is repaid to the bank, the...