Alaska banks ‘overwhelmed,’ hit pause button on paycheck protection loans

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Small business owners who were not Johnny-on-the-Spot to apply for the Paycheck Protection Program loans, which are guaranteed by the federal government, may have to wait a bit longer.

Toward the end of last week, two Alaska banks stopped taking applications for what is called a “PPP loan” for small businesses, self-employed, nonprofits, and independent contractors who have lost their incomes due to the COVID-19 economic shutdown.

First National Bank of Alaska, Northrim Bank suspended their acceptance of applications, while AlaskaUSA Federal Credit Union is limiting the program to credit union members only.


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