David Hoffman: Alaska growth capital; This financial institution provides loans and technical assistance to its high-risk clients.

• Author: Mehta, Neil S.
• Position: Interview - Brief Article

"Providing loans to clients is great. But coupling those funds with ongoing, prudent management assistance is even better. It is this combination of money and service that differentiates Alaska Growth (Capital) in the eyes of our customers."

These words of David Hoffman aptly describe the customer-centric mentality of Alaska Growth Capital, the state's youngest commercial lending institution. Hoffman, president and CEO, founded the company in 1997 in order to provide loans to small businesses deemed high-risk by traditional financial establishments.

Today the Anchorage-based company services over 20 clients to which they have currently offered 31 loans. Each package ranges from $100,000 to $600,000, traditionally last-big three to seven years. In spite of the high-risk nature of Alaska Growth's customers, the company has sustained a solid loans-lost record, as a mere four of their 56 loans have fallen through.

The success of Alaska Growth Capital's services stems from its customer-oriented, unique value proposition. Unlike many of its contemporaries, the company offers equity investments and management consulting, as well as technical assistance to clients. Moreover, its business capabilities are further enhanced through affiliation with Inupiatowned parent-company Arctic Slope Regional Corp.

Under the leadership of several active members in the rural Alaska community, Alaska Growth has worked assiduously to encourage the state's economic development. It predominantly provides support through efforts to pursue clients located in economically distressed areas as well as potential customers involved in industries expanding Alaska's economy. Those target sectors include manufacturing and resource development.

Hoffman has been involved in economic expansion and business management of Alaska for nearly two decades. Hoffman, the former commissioner of the state Department of Community and Regional Affairs, also has served as CEO of Sitnasuak Native Corp. in Nome and chief operating officer of UIC Corp., one of the 20 largest Alaska-based corporations.

Hoffman recently took time from his busy schedule to discuss the past, present and future of Alaska Growth Capital.

ABM: How has the current downturn in the business economy affected Alaska Growth's ability to support small businesses?

Hoffman: In spite of the climate, we are on an upward growth trend. There is tremendous demand for our services; the constraint is our ability to serve that market...