The Alaska Small Business Development Center offers guidance and advice to small business owners, whether starting up a new one or expanding existing businesses. The SBDC can provide on-site services in addition to online support. The Anchorage Economic Development Corporation is a nonprofit organization that connects business owners with local community and government resources.

The U.S. Small Business Administration has an office in Anchorage that can arrange SBA loans and provide consulting advice to entrepreneurs and business owners.

Alaska has a grants program that supports minority women entrepreneurs to build their businesses and secure contracts to increase jobs. Another Alaskan program provides grants to graduate students to pursue projects that benefit specialty crop industries.

If you think your Alaska business may qualify for a federal grant, it’s highly recommended that you take a look at Grants.gov.

Before you apply for a loan with a lender, you need to choose a business structure. In the beginning, a sole proprietorship may work if you only have yourself and a couple of employees, but as you grow and add more people, you’ll want to either incorporate or form a limited liability company. At this point, you’ll need to register the company with the Alaska Secretary of State.

The lender will want to see that you’ve carefully considered the need for a loan and that it fits into the debt structure and cash flow of your business. As you present documentation stating the purpose of the loan, a description of the collateral that will adequately secure the loan, and the schedule on which you intend to pay the loan back, the lender will then make a choice to extend financing to your business or not.

Loans should be structured according to their purpose. Let’s say you’re in the business of drilling for oil in Alaska. If you need heavy-duty trucks to carry materials and supplies to the job site, these purchases should be financed with long-term loans, payable over a few years. On the other hand, if you’re using the money to purchase the supplies, such as drilling fluids, carried by the trucks, then short-term loans or a revolving line of credit would be the best financing method. Online platforms, such as Lendio, have financial advisors who can listen to a business owner’s needs and match them up with the appropriate type of financing.

Businesses typically need more money than just the owner’s equity to operate. Taking out loans and various other forms of debt is part of funding the growth and operations of a business. Retail businesses, for example, will need more funds during the holiday season to carry higher levels of inventory that can be financed with short-term loans. And long-term loans can enable an owner to purchase expensive machinery and equipment without having to lay out all cash up front. Loans play a vital role in the growth and development of any business.