The BIDCO Act was passed by Alaska's Legislature to promote economic development by encouraging the formation of a business entity whose purpose would be to provide financial and management assistance for other businesses in the state.
The Banking Section provides for licensing,
regulation, and enforcement to enable a BIDCO to satisfy the eligibility
requirements for participating in programs that further the purposes
of BIDCOs; to prevent fraud, conflict of interest, and mismanagement;
and to promote competent management, accurate record keeping, and
appropriate communication with shareholders;
An application to the Division shall
provide information on the directors, officers, and controlling
persons of the applicant. The application must also set a business
plan, with at least 10 years of detailed financial projections
including the following:
Unless the BIDCO receives a loan under AS
37.17.200 - 37.17.390, the department may not establish a minimum
net worth for a BIDCO under this section of less than $1,500,000. If
the BIDCO, as part of its initial capitalization, receives a loan under
AS 37.17.200 - 37.17.390, the minimum net worth of the BIDCO may be
$500,000, excluding organization costs paid for or owed by the BIDCO.
A BIDCO license may only be issued if the department determines that each director, officer, and controlling person of the applicant is
The department may determine that a director,
officer, or controlling person of an applicant is not of good character.
Grounds the department may use to make that determination include proof
that the director, officer, or controlling person, or a director or
officer of a controlling person has
Contact the Department with any questions.
The Division of Banking and Securities
P.O. Box 110807
Juneau, AK 99811-0807