Juneau -- The Alaska Senate Wednesday passed House Bill 339, sponsored by Representative Eldon Mulder (R-Anchorage).

HB 339 expands the lending authority of the Commercial Fishing and Agriculture Bank (CFAB) and enables it to make loans to Alaskan small business enterprises involved in natural resource development and tourism.

"Private- and public-sector auditors alike give the bank favorable reviews, but consistently note that the concentration in agriculture and fishing industry loans results in an unusual level of risk exposure and vulnerability to the ups and downs of these industries," Mulder said. "HB 339 recognizes these underlying concerns and allows CFAB to expand its customer base to other Alaskan industries needing loan assistance."

"CFAB has been very successful since its inception as a niche bank with just 13 employees, making agriculture and fishing loans," said Senator Tim Kelly (R-Anchorage). "The bank paid back its initial capitalization from the State and has been a real success.

"Initially, I had some concerns about CFAB moving a little too quickly into the unfamiliar areas of tourism and natural resources loans," Kelly said, "but I'm hopeful that Ed Crane and his organization will show the same success transitioning into these areas as they have shown in the past."

HB 339 passed the 18-2. Notice of reconsideration was filed.

Attachments:

• Sponsor Statement