Performance Details

Department of Commerce, Community, and Economic Development - Investments

Mission

Promote economic development opportunities.

Core Services

Business Financing
Inter-Agency Services
Financial Management

Mission Results

Core Services

A: Economic opportunities for Alaskans are optimized. Details >

TARGET #1: Economic development through direct state lending in industries and areas that are not adequately serviced by the private sector.

TARGET #2: Management of loan portfolios for other agencies.

TARGET #3: Return of capital to the state through effective financial management of loan funds.

A1: Business Financing Details >

TARGET #1: Provide financing to Alaskan private nonprofit aquaculture corporations to produce $100 million in hatchery-reared salmon to Alaskan commercial fisheries annually.

TARGET #2: Through direct business lending, create or maintain jobs for Alaskans that meet or exceed the rolling five-year average.

A2: Inter-Agency Services Details >

TARGET #1: Generate $5.5 million or more annually in new loans.

A3: Financial Management Details >

TARGET #1: Generate $6.5 million annually in new earned revenue.

Performance Detail

A: Result -Economic opportunities for Alaskans are optimized.

Target #1: Economic development through direct state lending in industries and areas that are not adequately serviced by the private sector.

Methodology: Information is obtained from the Commercial Fisheries Entry Commission website under "Permits and Permit Holder" based on total active resident and nonresident permits.

Percentage of Limited Entry Permits Held by Alaskan Residents

Year	% Owned	Target
2023	78%	78%
2022	78%	78%
2021	77%	78%
2020	77%	78%
2019	77%	78%
2018	77%	78%
2017	77%	78%
2016	77%	78%
2015	77%	78%
2014	77%	78%

Analysis of results and challenges: The Commercial Fishing Revolving Loan Fund provides long-term, low-interest loans to commercial fishing harvesters to help promote and maintain Alaskan ownership and strong resident fisheries. The overall resident ownership of limited entry permits is one of the ways to measure program success. Alaska`s fishing towns and villages have experienced an exodus of permits, and the loan fund is the most effective way to ensure permits remain in the hands of Alaska residents.

Target Last Modified: 11/15/2024

Target #2: Management of loan portfolios for other agencies.

Methodology: Division loan officers enter information from the borrowers" loan application directly into the Division of Investments (INV)) "LOANS" computer database. These statistics are tracked and monitored on a monthly basis as a part of INV`s performance measures.

Repayments Received From Loan Portfolios Serviced for Other Agencies (in thousands)

Fiscal Year	Principle	Interest
FY 2024	$19,558.8	$605.2
FY 2023	$19,050.4	$530.8
FY 2022	$12,552.2	$501.4
FY 2021	$11,586.8	$447.5
FY 2020	$14,974.3	$506.5
FY 2019	$14,572.8	$502.6
FY 2018	$13,989.8	$597.5
FY 2017	$12,611.7	$618.4
FY 2016	$15,501.4	$680.2
FY 2015	$18,414.4	$815.5

Analysis of results and challenges: Investments provides cost effective loan servicing for two other state agencies: Alaska Industrial Development and Export Authority (AIDEA) and the Division of Community and Regional Affairs (DCRA). Investments manages the Small Business Economic Development and Rural Development Initiative revolving loan funds on behalf of AIDEA, and the Bulk Fuel revolving loan fund on behalf of DCRA. Investments` combined lending, collections, and accounting functions create efficiencies for the State of Alaska"s administration of these programs. The fluctuations in the monetary utilization of the funds are indicative of the fluctuations in fuel prices, private sector interest rates and general economic conditions. The recent growth in repayments is due to increased loan activity in these portfolios, driven by inflation increasing the cost of fuel, transportation, and interest rates. The low interest rates offered by these programs helps to offset the increased costs to Alaskans.

Target Last Modified: 11/15/2024

Target #3: Return of capital to the state through effective financial management of loan funds.

Methodology: Combined rate of foreclosures and delinquencies calculated by fiscal year for the Commercial Fishering Revolving Loan Fund, compared to the Federal Reserve published total delinquency rates.

Analysis of results and challenges: Maintaining low delinquency rates on the loan funds administered by the Division of Investments results in higher rates of return to the loan funds and the general fund. Commercial lending in a volatile industry like commercial fishing is challenging but maintaining prudent lending practices developed over time and carried out by experienced and knowledgeable staff has maintained lower than average delinquency rates. The slight increase in fund delinquency can be attributed to volatility in the global seafood market driving ex-vessel market prices down, and persistent inflation increasing costs of goods and services combined with the residual effects of the COVID-19 pandemic. The division`s decades of experience managing financing in Alaska`s volatile fishing industry reduces delinquency and protects the State`s investments, while maintaining a strong resident fleet.

Target Last Modified: 11/15/2024

A1: Core Service - Business Financing

Target #1: Provide financing to Alaskan private nonprofit aquaculture corporations to produce $100 million in hatchery-reared salmon to Alaskan commercial fisheries annually.

Methodology: Data is from the Alaska Department of Fish and Game/Division of Commercial Fisheries/Alaska Salmon Enhancement Program Annual Report.

Total Value of Hatchery-Reared Salmon to Statewide Commercial Fisheries (in millions)

Year	Dollars	Target
2023	$131.0	$100.0
2022	$163.0	$100.0
2021	$142.0	$70.0
2020	$69.0	$70.0
2019	$118.0	$70.0
2018	$176.0	$70.0
2017	$162.0	$70.0
2016	$85.0	$70.0
2015	$125.0	$70.0
2014	$113.0	$70.0

Analysis of results and challenges: Salmon hatcheries provide a significant financial contribution to Alaska common property fisheries. The Division of Investments provides the salmon aquaculture industry in Alaska with a source of low-cost capital through the Fisheries Enhancement Revolving Loan Fund (FERLF). This capital is specifically tailored by statute to meet the needs to this unique industry and is not available in the private sector. Measuring the amount of money generated annually as a result of salmon harvested by commercial fishermen and raised by FERLF participants is a good indicator of the program"s effectiveness. The most recent information available from the Alaska Department of Fish and Game for calendar year 2023 indicates the ex-vessel value of hatchery reared salmon is $131 million. The decrease in 2023 was due to lower ex-vessel market prices compared to the previous year.

Target Last Modified: 11/15/2024

Target #2: Through direct business lending, create or maintain jobs for Alaskans that meet or exceed the rolling five-year average.

Methodology: Division loan officers enter information from the borrowers" loan application directly into the Alaska Division of Investments "LOANS" database. These statistics are tracked and monitored on a monthly basis.

Jobs Created or Maintained Through Commercial Fishing Revolving Loans

Fiscal Year	# of Jobs	Five-Year Average
FY 2024	479	464
FY 2023	217	471
FY 2022	530	535
FY 2021	695	582
FY 2020	401	518
FY 2019	512	543
FY 2018	539	563
FY 2017	763	536
FY 2016	377	475
FY 2015	523	475

Analysis of results and challenges: Maintaining local ownership of fisheries resources and the jobs associated with those resources is critically important to Alaska"s economy. Lending activity results in the creation of new jobs and the continuation of existing jobs for Alaska residents. These loans provide a necessary source of capital to the commercial fishing industry that help to maintain employment levels that are critical to Alaska`s future and economy, particularly in rural areas of the state where commercial fishing is often the only economic activity.

Target Last Modified: 11/15/2024

A2: Core Service - Inter-Agency Services

Target #1: Generate $5.5 million or more annually in new loans.

Methodology: Division loan officers enter information from the loan applications directly into the Division of Investments (INV) "LOANS" computer database. These statistics are tracked and monitored on a monthly basis as a part of INV`s Performance Measures.

Principal Outstanding from All Loan Portfolios (in thousands)

Fiscal Year	Dollars
FY 2024	$165,177.2
FY 2023	$172,008.0
FY 2022	$170,549.6
FY 2021	$168,609.0
FY 2020	$176,497.2
FY 2019	$173,981.2
FY 2018	$171,608.4
FY 2017	$173,372.7
FY 2016	$171,072.2
FY 2015	$176,576.9

Analysis of results and challenges: Loan growth continues to be stable but is less than the pre-pandemic period. Entry of young Alaskans into commercial fisheries and small business expansion are linked to this stable growth. However, the commercial fishing industry remains volatile and the Division of Investments continues to strike a balance between the volatile economic conditions and protecting the State"s investments. Recent loan growth has been impeded by Russia flooding the global markets with underpriced seafood; over production by salmon farms; a strong U.S. dollar in the international market; and inflation, making all of the necessities of commercial fishing prohibitively expensive, including high interest rates forcing harvesters to delay financing.

Target Last Modified: 11/15/2024

A3: Core Service - Financial Management

Target #1: Generate $6.5 million annually in new earned revenue.

Methodology: Loan receivable balances are taken from the LOANS! loan management software used by the Division of Investments.

Commercial Fishing Revolving Loan Applications

Fiscal Year	Loan Applications	Target
FY 2024	326	600
FY 2023	238	600
FY 2022	343	600
FY 2021	491	600
FY 2020	371	600
FY 2019	500	600
FY 2018	473	600
FY 2017	587	600
FY 2016	625	600
FY 2015	600	600

Analysis of results and challenges: The Division of Investments Commercial Fishing Revolving Loan Fund has experienced a modest increase in applications from prior years due to the COVID-19 pandemic. This includes new applications, as well as assumptions, extensions and other modifications. These numbers are influenced by the rate of fishing returns and market conditions, as poor returns can drive up the need for extensions and modifications. The fluctuation in loan demand can be attributed to a sharp downturn in Alaska`s fishing industry that was driven by a surge of underpriced seafood from Russia flooding global markets, persistent inflation increasing costs of goods and services, combined with the over production by salmon farms.

Target Last Modified: 11/15/2024

Last refreshed: 05/22/2025 08:00 am