(a) The authority may guarantee a loan under AS 44.88.700 - 44.88.799 if the
(1) loan
(A) is commercially reasonable;
(B) contains payment provisions satisfactory to the authority; and
(C) is secured by acceptable collateral;
(2) project
(A) is allocated new markets tax credits by a qualified community development entity;
(B) promotes economic development in the state; and
(C) is not a housing project;
(3) borrower demonstrates the ability to repay the loan from either or both of the following:
(A) net cash flow of the borrower;
(B) proceeds from the sale of current assets that are collateral for the loan if the sale or receipt of proceeds from the sale is an event that creates a payment obligation; in this subparagraph, “current asset” means property that will be or could be converted into cash within one year in the normal operation of a business;
(4) term of the loan does not exceed 10 years;
(5) loan is originated with and serviced by a financial institution.
(b) The authority may provide a guarantee for up to 100 percent of a loan that qualifies under AS 44.88.700 - 44.88.799.
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