Justyne Ross is a former Path to Prosperity Business Competition winner and a participant in Spruce Root’s first cohort of Resilience Circles, a year-long cohort-based program to support Indigenous entrepreneurs. Justyne is also a Fast Start Loan client. (Photo by Chelsea Jolly)
People. Purpose. Place
Strengthening Southeast Alaska’s businesses — together
Spruce Root empowers entrepreneurs with flexible financing, business coaching and community-driven solutions
Tripp J Crouse/Spruce Root
Spruce Root is more than a lender — it’s a partner in building a resilient and thriving Southeast Alaska.
As a Native Community Development Financial Institution (CDFI), we provide financing, business coaching and financial wellness programs tailored to the unique needs of our region.
Our mission is to help entrepreneurs start and grow businesses that sustain local economies and uplift our communities. We do this through small business coaching, workforce development and career skills support, and financial programs to meet the unique needs of our region.
CDFIs like Spruce Root exist to serve the businesses, individuals and communities that may not always have access to conventional financial services.
Spruce Root CDFI Director Michael Ching says CDFIs adopt a mission-driven approach that considers the holistic well-being of communities and the environment, including community economic development and serving underserved populations, to create positive social and environmental impact alongside financial returns.
"We prioritize understanding the unique needs of each business, structuring loans with flexible terms to accommodate seasonal cash flow fluctuations, and providing hands-on technical assistance to ensure long-term success,” he said.
This distinction manifests in various ways — from the regulatory environment to the funding sources and lending practices.
CDFIs tend to have more flexibility and higher risk tolerance, often providing business support alongside their financial products.
The role of Native CDFIs in Southeast Alaska
One of the most unique aspects of Spruce Root's work is its designation as a Native CDFI.
Spruce Root Program Manager of Small Business Marc Wheeler talks with Holly Adams, whose business plan was selected as one of the winners for the 2023 Path to Prosperity Business Competition. Holly’s business, Muskeg Munchkins Baby Boutique, sells clothing, toys, gifts, and essentials for babies, children, and expecting parents.
To earn this status, an institution must be actively serving clients who are Native American, Alaska Native or Native Hawaiian.
This regional focus is significant in Southeast Alaska, where Indigenous communities and traditional industries like fishing and arts are integral to the region's economic and cultural fabric.
For example, Michael explained, “Our fishing or tourism clients appreciate that finance repayment is tailored to align with their seasonal revenue cycles. It seems sensible to structure payments due when revenue is available versus rigid amortization schedules that are not cash flow aligned.”
A collaborative approach extends to Spruce Root's relationship with banks. Rather than viewing them as competitors, the CDFI sees an opportunity to collaborate and step in when a bank doesn’t have the same flexibility to take on a unique loan or even partner with the bank to help de-risk a loan.
“For entrepreneurs unable to access conventional financing, Spruce Root offers an alternative path to capital and business development services to entrepreneurs," Michael said.
Flexible financing for seasonal businesses
Beyond providing access to capital, Spruce Root's support for businesses includes tailored coaching and training services.
Spruce Root Loan Compliance & Portfolio Manager Abbey Janes emphasized the organization's commitment to nurturing relationships and fostering the long-term sustainability of its borrowers.
"We are here to support businesses in Southeast Alaska," Abbey said. "We had hundreds of people receive support from Spruce Root in 2024. Not very many of those business owners actually went on to get a loan. We are here to support people growing their businesses, regardless of whether or not they get a loan. That is just one tool that we have in our toolbox to support entrepreneurs."
This holistic approach includes pre-loan technical assistance in the form of group business workshops for start-ups and growth stage businesses, business coaching, career coaching, and financial wellness support services. These services set up an entrepreneur for increased likelihood of success. Once an entrepreneur receives a loan, Abbey and her team work closely with clients, offering continued guidance, training and support throughout the life of a loan.
Expanding impact through specialized lending
Spruce Root is constantly evolving to meet the needs of its community.
From the fast-start micro-loans and small business financing to the specialized offerings in mariculture and clean energy, the team is dedicated to expanding its impact.
"We also have loans to help new and emerging mariculture businesses. This can be anywhere from $125,000 to $1 million," Michael said. "We are about to launch our Tongass Energy Bank to help provide low-cost capital for businesses to access renewable energy solutions."
Spruce Root’s Fast Start Loan is a micro-loan of up to $50,000 that is available to people starting a business or expanding a business, holding a credit score of 675 or better, and able to demonstrate income to pay the loan amount. The Fast Start Loan does not require collateral nor does it require a down payment. Fixed interest rates can change with the market, but as of today are 8.5 percent.
The Fast Start Loan does require character references: two letters of support from other businesses in the community that provide an endorsement that the applicant is qualified as a business owner and that the business will be useful and beneficial to the community.
In addition, the U.S. Small Business Administration (SBA) approved Spruce Root as the first SBA microlender in Alaska. This designation opens new doors for small business owners, providing them with greater access to capital and resources to grow their ventures.
In addition, Spruce Root offers standard business loans for up to $500,000. These require a business plan and an analysis of the company's financials and repayment capability.
Everything Spruce Root does — from issuing loans to providing business training — is made possible by the entrepreneurs, partners and community members who share our vision for a stronger Southeast Alaska.
“So many other challenges we face in our region are tied to economic wellbeing. If we can decrease the financial stress of families, it frees up their capacity to focus on the social, emotional, and physical wellbeing of themselves and their community,” explains Alana Peterson, Executive Director at Spruce Root.
Whether you’re a small business owner seeking support, a partner organization looking to collaborate, or an investor interested in supporting sustainable economic growth, you are a vital part of this effort to build stronger economic wellbeing in our communities.
“We are here to support businesses in Southeast Alaska,” Abbey said. “Unique in terms of portfolio management, I'm managing our company assets with the goal of making sure that we can continue to do this work and support borrowers in the region. It's less about the bottom line and more about the relationships and the people and being able to continue doing our work.”
Together, we are creating opportunities, strengthening communities and building a future where businesses in Southeast Alaska have the tools they need to thrive for generations to come.
Spruce Root is here to support Southeast Alaska’s entrepreneurs and communities. Whether you're looking for flexible financing, business coaching or financial wellness resources, we’re ready to help. Contact us by phone 907-586-9251, email grow@spruceroot.org or visit us online at spruceroot.org.