(a) The department may use money from the Alaska microloan revolving loan fund to make loans of up to $35,000 to a person or loans of up to $70,000 to two or more persons. (b) A loan under AS 44.33.950 - 44.33.990 (1) may not exceed a term of 12 years, except for extensions under AS 44.33.955; (2) may not bear interest at a rate greater than the prime rate, as defined in AS 44.88.599, plus two percentage points, but that may not be less than four percent a year or more than eight percent a year; (3) must be secured by collateral acceptable to the commissioner; and (4) may not be made to a person who has a past due child support obligation established by court order or by the child support services agency under AS 25.27.160 - 25.27.220 at the time of application.
Alaska Legal Code