Loan Purpose

To provide long-term, low interest loans for purchase and installation of Capstone and NextGen avionics equipment for aircraft that operate substantially in Alaska.

General Requirements

• Aircraft being upgraded must be owned or leased by applicant.
• Aircraft being upgraded must be substantially operated in Alaska.
• Applicant must sign a declaration certifying that the aircraft being upgraded has flown at least 51% of its flight hours in Alaska over the last 12 months.
• Applicant must provide a copy of the airworthiness certificate and aircraft registration.
• All aircraft must at a minimum, be equipped with an Automatic Dependent Surveillance—Broadcast (ADS-B) data link system or sign an intent to equip loan agreement allowing up to 36 months from date of Promissory Note to equip aircraft with ADS-B.

Program Requirements

Purchases – Loans may be made to purchase and install eligible Capstone avionics equipment in aircraft that are substantially operated in Alaska.  Equipment that is purchased and installed no more than 120 days before receipt of the application may also be eligible.
Collateral – Loans will be secured by a priority lien on the Capstone avionics being financed and by a lien on the aircraft receiving the improvements.
Refinancing – Refinancing existing debt is not allowed.

Eligible Avionics Equipment

• Automatic Dependent Surveillance - Broadcast (ADS-B) Data Link;
• GPS/WAAS navigation equipment;
• A moving map multifunction display (MFD); or
• Other equipment as determined by the Department of Commerce, Community, and Economic Development in consultation with the Department of Transportation and Public Facilities.

Terms and Conditions

• Maximum loan term is 10-years.
• Maximum loan amount is 80% of the cost.
• Interest rate will be fixed at the time of loan approval, visit www.commerce.alaska.gov/ded/fin/ for current interest rates.

Fees

• A $50 application fee (non-refundable) must accompany all applications.
• Borrower is responsible to pay all direct costs incurred in processing an application including the cost of obtaining an aircraft title report and any recording fees.

Alaska Capstone Avionics Loan Application

The following Alaska Capstone Avionics Loan Application pages are in PDF format. You will need the Adobe Reader in order to view/print them. Acrobat Reader is distributed freely and available for download from Adobe®.

The Division of Economic Development, Department of Commerce, Community, and Economic Development complies with Title II of the Americans with Disabilities Act of 1990. This publication is available in alternative communication formats upon request. Please contact the Division of Economic Development at (907)465-2510 or TDD (907)465-5437 to make any necessary arrangements.