A woman in black smiles. Catering trays can be seen in the background.

Loan Services

Spruce Root’s loan program is as unique as your business! Our coaches work with you to develop and refine your business plan, budget, and financial structure before you apply for funds, to give you the strongest opportunity for success.

Get Started

Who Do We Fund?

Anyone in Southeast Alaska can apply for a Spruce Root business loan. Our region’s resiliency and sustainability is woven together with the successes of our small businesses and pioneering entrepreneurs: the very roots of our local economy. We are proud to offer free and affordable services for business owners in Southeast Alaska.
Further Eligibility Information

Lending Process

Get Started

All loan applicants begin the process with a brief consultation call. The interview will be with one of our Spruce Root team members and can be done in person or over the phone. During the interview, you will learn about Spruce Root’s mission and process, discuss your business idea and provide general information about your personal and business finances. At the end of the interview, Spruce Root’s staff will let you know the next steps and answer any questions you may have.

If you do not have a formal written business plan or financial model, don’t worry. Spruce Roots knowledgeable team members can connect you with many of the resources needed for developing your plan and model before you continue with your application. Many applicants still need to write a business plan when they come in for the initial interview. Writing a business plan takes work and our team is here to support you along the way.

Once you’ve finished your business plan and financial model, the Spruce Root team will help you complete your full loan application. You’ll need to gather your bank records, tax return information, and other legal and financial documents. After you sign an information release form, Spruce Root will provide a link for you to run the credit report and share it with the loan underwriter.

After you complete your application, the Spruce Root team will send it to the underwriter. The underwriter may ask for more information about your financial history or business plan. If s/he determines that you are a strong candidate for a loan, s/he will write a credit memo that details what kind of loan package Spruce Root can offer you.

The Spruce Root loan committee reviews the credit memo and ultimately decides if Spruce Root is able to offer you a loan. Additionally, the loan committee will set the terms and requirements of your loan. The majority of Spruce Root loan committee members are independent experts in finance and loan origination.

If the loan committee approves your loan, you receive the funding and put it to work in your business! Spruce Root will partner with you to provide ongoing business support.

What Do We Fund?

Startup Capital

Want help getting your idea off the ground? We can provide the seed money to grow it into a full-fledged business that benefits your community.

Leaseholder Improvements

Wish you had the extra funds to spruce up your business space? We’re here to help you realize your vision for what it should look like.

Business Expansion

Ready to grow? We’re happy to help local businesses branch out, deepen relationships, and become more interwoven with their communities. 

Working Capital

Need funds to feed your business model? We want local businesses to succeed and continue impacting our region for the better, so don’t hesitate to reach out!

We will consider any business loan that promotes the economic development of Southeast Alaska. Growth is our goal. For outside financing options, see our Resources page. 

Fast Start Loan Program

Turn your business dreams into a reality with Spruce Root’s Fast Start Loan! Say goodbye to lengthy waiting times and uncertainty.

Our expedited application process could approve you for loan amounts up to $50,000 for your start-up or business expansion costs. If you need access to lending capital, but don’t qualify for traditional debt financing, let Spruce Root help you today. 

Applicants must be Alaska residents with a business license located in Southeast and a personal credit score of 675 or higher.  

To meet with a Spruce Root staff and learn more about the Fast Start Loan Program, click here.

What is a CDFI (Community Development Financial Institution)? 

Community Development Financial Institutions (CDFIs for short) are private financial institutions that provide lending products to meet the needs of low-income residents who do not typically have access to capital through traditional financing entities. Spruce Root CDFI specializes in financing community businesses, intending to strengthen our local business economy, spark job growth, and lead Southeast Alaskan communities toward economic resilience

Although CDFIs can be profitable, they are not profit-maximizing – as a mission-driven entity, they put community first. Accordingly, we work with you not only from a technical level (i.e. help you develop a business plan), but also offer flexible loan structures (i.e. payment plans tailored for your business) to give your business the strongest opportunity for success. 

Traditional lenders have strict business loan requirements, which typically include two years of experience, financials, tax returns, collateral, etc. Spruce Root understands that you have to “start somewhere.”  Our ultimate goal is to meet you where you are at and help you get the resources needed to start and grow your business to the level where it and you are eligible for traditional financing with better rates and terms.  

Who is eligible for a loan?

Anyone over the age of 18 in Southeast Alaska can apply for our business loans.

What Does Spruce Root NOT provide funding to/for?

Spruce Root does not provide financing to/for:

    • Borrowers or projects in which the Fund’s personnel, including contractors, management, Loan Committee or Board members have a direct financial interest unless such borrowers have no alternative access to outside financing in which the Fund may consider but only if approved by the Board of Directors.

    • Businesses that receive more than 50% of their gross sales from gaming

    • Multi-level, pyramid or network marketing strategies

    • Speculative enterprises

    • Personal loans

    • Fraternal organizations

    • Illegal activities

    • Production or distribution of violent, unsafe materials

    • Residential housing or home improvement projects

    • Real estate development or investment projects unless the real estate is necessary for the growth or diversification of the borrower’s existing operation

    • Borrowers with active judgments or litigation pending, especially collection actions, unpaid/delinquent federal obligations, or prior charge offs with the Fund or its lending partners.

Does Spruce Root lend to businesses anywhere in Alaska? 

Yes, Spruce Root serves entrepreneurs and business owners across Alaska. Priority efforts are made to meet the needs of Southeast Alaskan community members.

Do I need to have an existing business? 

No. Loans may be used for start-ups. However, Spruce Root requires a formal business plan as part of its application process.

Can Spruce Root give me a grant for my business? 

No. Spruce Root provides loans, not grants. Funding from Spruce Root is a loan, and thus it must be paid back with interest. 

Do I need collateral to apply for a loan with Spruce Root? 

Yes. The amount of collateral varies with the size of the loan. However, CDFIs like Spruce Root can have flexible terms and requirements and are able to accept certain forms of collateral that banks may not accept.

Do I need good credit to apply for a loan with Spruce Root? 

No. Spruce Root is able to make loans to people and businesses with low credit. CDFIs like Spruce Root help build and establish credit which is one of the many added benefits offered by CDFIs.

Does Spruce Root auto approve loans? 

No. Everyone must go through the same loan application process. The loan committee assesses each application based on the merits of the business plan.

What are the maximum and minimum loan amounts? 

There is no official minimum loan amount, however, total loans to a single borrower may not exceed $250,000.