Bulk Fuel Revolving Loan Program

Effective January 1, 2013, DCRA is administering a new bulk fuel loan program that will assist communities, utilities, and fuel retailers to purchase bulk fuel to generate power or supply the public with fuel for use in rural communities. The new program replaces bulk fuel loan programs previously administered by the Alaska Energy Authority (AEA) and DCRA. Since January 1, all existing fuel loans with the AEA and DCRA are being managed within this new program, but will remain on the same payment schedules and maturity dates as indicated on the original loan documents. Application forms previously used by the AEA and DCRA fuel loan programs will no longer be accepted. The new program will require completion of a new application form for any loan requests. Click on the button below to download the new Bulk Fuel Loan Program application.


Loan Purposes

Loans may be made to assist communities in purchasing bulk fuel oil or gasoline including the shipping costs of the fuel to the community.

Eligibility

Loans may be made to a municipality or unincorporated village with a population under 2,000, or a private individual or company retailing fuel or electricity in such a community. Determination of eligibility will be evaluated on an individual basis by the State of Alaska Department of Commerce, Community, and Economic Development (DCCED), Division of Community and Regional Affairs (DCRA). The Division shall make loans from the Bulk Fuel Revolving Loan Fund as either bulk fuel loans or bulk fuel bridge loans as provided in AS 42.45.250-42.45.299.

Interest Rate

Interest shall be charged on a bulk fuel loan or bulk fuel bridge loan at a base rate of four percent except as provided by AS 42.45.280(b) and (c);

  1. First time borrowers of a bulk fuel bridge loan shall be charged zero percent; second and subsequent bridge loans shall be charged at the base rate of four percent.
  2. For recipients of bulk fuel loans, interest rates will be determined by the Division based on the borrowerÂ’s repayment history and other criteria. The interest may be reduced by one percent for borrowers with at least one previous bulk fuel loan or two percent for a borrower with two or more previous bulk fuel loans made by the Division. There are no other fees to apply or receive a fuel loan from the program.

Loan Terms

Loans are payable in nine equal monthly payments and must be repaid during that term unless an alternate payment schedule has been approved by the DCRA. Shorter terms may be required in special circumstances as determined by the DCRA. All loans must be paid within one year from date of disbursement. The amount of the loan, added to the amounts of all other bulk fuel revolving loan principle balances to the same borrower may not exceed $750,000. A cooperative organization representing more than one community may qualify for a maximum loan amount not to exceed $1.8 million.

Collateral

Applicants may be required to secure a bulk fuel revolving loan by submitting a resolution adopted by the governing body with payments from the State of Alaska for funds provided by Community Revenue Sharing, Payment in Lieu of Taxes (PILT), Power Cost Equalization (PCE), or other programs to the Bulk Fuel Revolving Loan Program.

Submit all loan applications to:

Division of Community and Regional Affairs
Bulk Fuel Revolving Loan Program
550 W. 7th Ave., Suite 1640
Anchorage, Alaska 99501
Telephone Number: (907) 269-4614 or 269-4564
Fax to: 907-269-4563
Email to: bulkfuel@alaska.gov

For more information please contact:

Jane Sullivan

Division of Community and Regional Affairs
Department of Commerce, Community, and Economic Development
Phone: 907-269-4614
Email: jane.sullivan@alaska.gov