Spruce Root Becomes an SBA-Approved Microlender in Alaska
Photo Credit: Sommart | iStock
The first microlender founded and headquartered in Alaska to receive formal approval from the US Small Business Administration (SBA) is Spruce Root, the community development financial institution for Southeast. The microlender designation opens new opportunities for small businesses, providing greater access to capital and resources to grow.
A Growing Tree of Support
Microloans have been available in Alaska for a few years; Business Impact NW, a Washington-based nonprofit with an Anchorage office, received SBA approval in 2022, bringing that financing option to Alaska. Spruce Root was founded in Alaska, originating in February 2012 with $500,000 of seed money from Sealaska regional corporation through Haa Aaní Economic Development. The fund has grown to $3 million, thanks to grant, benefactor, and partner funds.
“Spruce Root becoming SBA’s newest microlender in Alaska is a significant milestone for our state’s small business community,” says Steve Brown, SBA Alaska District Director. “This partnership will expand access to critical capital for entrepreneurs and small business owners empowering them to start, grow, and sustain their businesses. We are thrilled to welcome Spruce Root to the SBA lending family and look forward to seeing the positive impact they will have on Alaska’s economy.”
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January 2025
The SBA’s Microloan Program provides loans to nonprofit intermediaries like Spruce Root, which in turn lend the funds to small businesses and entrepreneurs who may have difficulty obtaining financing from traditional banks. The loans can be used for working capital, inventory, equipment, or other business-related expenses.
As an SBA microlender, Spruce Root will be able to offer small loans up to $50,000 to eligible entrepreneurs, including those in underserved and remote communities. These loans will help support a variety of businesses, from startups to expanding small enterprises, enabling them to thrive and contribute to Alaska’s local economies.
“Our mission has always been to support Southeast Alaskan communities and Alaska Native entrepreneurs in creating regenerative, thriving economies that reflect the unique strengths of our region,” says Spruce Root Executive Director Alana Peterson. “This partnership with the SBA allows us to broaden our impact across Alaska, ensuring that those who have historically faced barriers to capital have access to the opportunities they deserve. This milestone is a celebration of community, and the future we are building together.”
SBA approval builds on Spruce Root’s financing channels: last October, it was chosen to receive the Coalition for Green Capital’s first network investment, a $10 million line of credit aimed at underwriting clean and affordable energy in Native communities. Furthermore, Spruce Root’s Path to Prosperity suite of services won three awards from the International Economic Development Council in 2023. It is also the organizer of the Southeast Alaska Farmers Summit, happening in February, and is a sponsor of the Alaska Marketplace Business Boot Camp, where entrepreneurs can go through a four-day intensive business training program for Indigenous entrepreneurs.
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