Power Project Loan Fund
Provides loans to local utilities, local governments or independent power producers for the development or upgrade of electric power facilities, including conservation, bulk fuel storage, and waste energy conservation, or potable water supply projects. Loan term is related to the life of the project. Interest rates vary between tax-exempt rates at the high end and zero on the low end.
PPF Loan Application Instructions
Statutes
Regulations
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For more information on this program, contact:
Bruce Chertkow
Loan Officer
Phone: (907) 771-3000
e-mail: bchertkow@aidea.org
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Bulk Fuel Revolving Loan Fund
The purpose of the AEA Bulk Fuel Revolving Loan Fund is to assist communities, utilities or fuel retailers in small rural communities in purchasing emergency, semi-annual or annual bulk fuel supplies. Loans are for the purchase of new fuel. Loans will not be provided for fuel already purchased, in the process of being used or already consumed.
Who is Eligible to apply?
- An organized municipality or unincorporated village with a population under 2,000 people.
- A person, including private individuals, corporations and cooperatives, with a written endorsement from the governing body of each community for which the fuel will be used
Bulk fuel may be used for:
- Municipal electrical power generators, municipal heavy equipment
- Heating fuel for the municipality, residents, and businesses.
- Municipal, business and residential motor vehicles and for subsistence purposes.
Generally, aviation fuel and other non-fuel related supplies are not covered under the AEA Bulk Fuel Loan Program.
Loan proceeds may not be used to subsidize a business or to make a profit unless the profit is used to purchase additional community fuel supplies.
Amount:
- Maximum loan amount per fiscal year (July 1 – June 30) is $400,000.00 per borrower or up to $1.5 million for cooperative organizations representing more than one community ($400,000 multiplied by the number of communities).
- Can not exceed 90% of the wholesale price the fuel plus the cost of fuel transportation.
Fees:
- A non-refundable $25 application fee is required at the time of the submission of the application.
- A .5% origination fee of the total loan amount is charged at the time the loan is disbursed.
Interest Rate & Term:
- Generally no interest is charged on the first Bulk Fuel Loan.
- Generally 5% is charged on the second Bulk Fuel Loan.
- The third and subsequent bulk fuel loans are charged an interest rate equal to the average weekly yield of municipal bonds for the proceeding year (12 months)
- The loan will be repaid within one year or less and generally the term is nine (9) equal monthly installments
Applicants are considered on a "first come, first served" basis. As the loans are for the purchase of new fuel, it is advisable for communities to submit their application well in advance of the anticipated time of purchase of community fuel supplies.
Bulk Fuel Revolving Loan Fund Application
Statutes
Regulations
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For additional information or assistance please contact:
Leona Hakala
Loan Officer
Phone: 907-771-3000
e-mail: lhakala@aidea.org
Updated:
6/4/08
