Who Do We Fund?
Lending Process
Get StartedStep 1: Initial 30 Minute Consultation Call
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.
Step 2: Business Plan
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.
Step 3: Application
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 run your credit report, and share it with the loan underwriter.
Step 4: Underwriting
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.
Step 5: Loan Review
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.
Step 6: Loan Approval
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.
Looking for mariculture-related resources? We offer tools, trainings, and resources to support mariculture operations across the region. Learn more here.
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 member and learn more about the Fast Start Loan Program, click here.
Featured client story: “More Than A Valentine: A Q&A with The Red Lantern”
Standard Business Loan
We offer standard business loans to emerging and growing businesses up to $500,000 with flexible terms and repayment schedules. Spruce Root prioritizes financing for Southeast Alaskan entrepreneurs whose projects will strengthen local economies and communities. Beyond financing, borrowers receive ongoing coaching and technical assistance, reflecting Spruce Root’s mission to increase access to capital while supporting long-term, community-centered economic growth in Southeast Alaska.
- Business loans up to $500,000
- Average 8.5% rate
- Flexible terms, 5-7 (inquire about other terms)
- Secured
Featured client story: Edith Johnson, Our Town Catering & Ludvig’s Bistro
SBA Microloan
We offer U.S. Small Business Administration Microloans up to $50,000 for Alaska-based, for-profit businesses. Loans can be used for working capital, supplies, furniture & fixtures, machinery, equipment, and similar business needs. Funding is available in as little as 4 weeks from the time of application submission.
A few quick eligibility notes:
- Must be a legal, for-profit business located in Alaska
- Loan funds must be used within 2 years of disbursement
- Must meet the SBA small business size standards
- Applicants may not owe more than $50,000 at any one time; requests over $20,000 require a loan-declination letter
To meet with Spruce Root and learn more about the SBA Microloan Program, click here.
Funded through a Cooperative Agreement with the U.S. Small Business Administration.
Tongass Energy Bank
In 2024 Spruce Root launched the Tongass Energy Bank (TEB) to provide investment capital for innovative energy projects in Alaska Native villages and rural communities in Alaska. Spruce Root is currently looking for opportunities to invest an additional $8 million in Alaskan clean energy projects. Priorities for investing are 1) Southeast Alaska, 2) Alaskan Native communities and 3) all of the state of Alaska. Project types that may be eligible for investment include:
- Construction or renovation of commercial buildings (private, tribal, public or non-profit ownerships all ok), resulting in significant gains in energy efficiency
- Development of small renewable energy generation facilities (e.g. run of river hydro), ideally replacing diesel power generation facilities
- Transmission connections that allow for replacement of diesel generators with access to hydropower
- Installation of new clean energy technologies in Alaskan communities including vehicle charging stations and energy storage facilities
- Commercial solar energy projects
- Business equipment financing for high efficiency equipment
- Electrification (heat pumps) for multi-family residential developments
Future investment sizes are expected to range from $500,000 to $4,000,000, but flexibility is possible for high impact projects. Available loan terms range from 12 months to 15 years and interest rates averaging from 3.5% to 7%.
For more information contact Adam Zimmerman, Tongass Energy Bank Director
Featured story: In August 2025 Spruce Root closed its first Tongass Energy Bank loan, a $2 million investment in partnership with Native American Bank for the Metlakatla Indian Community. The investment funded the completion of an intertie project connecting energy resources on Annette Island and energy resources operated by Southeast Alaska Power Agency (SEAPA). The project reduced dependence on diesel power generation and improved energy system resilience for the entire region.
Read more about the project 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.
Take a look at our client portfolio to see examples of businesses we’ve served.
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 $500,000.