A Small Loan Act License Bond is required for businesses in Alaska that lend small amounts of money to consumers. This $25,000 bond acts as a financial guarantee to the State of Alaska that the lender will follow all state lending laws and regulations. If the lender breaks these rules or harms borrowers through illega…
Overview
What it is.
A Small Loan Act License Bond is required for businesses in Alaska that lend small amounts of money to consumers. This $25,000 bond acts as a financial guarantee to the State of Alaska that the lender will follow all state lending laws and regulations. If the lender breaks these rules or harms borrowers through illega…
Who usually needs it
Small loan lenders (also called small loan companies) applying for or holding a license to make small loans in Alaska under AS 06.20 (Alaska Small Loans Act) must obtain this bond. This includes any business entity or individual offering smaller-scale loans, often to consumers ineligible for traditional bank loans, operating at one or multiple locations.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateAKBond amount$25,000ObligeeState of AlaskaBond classLicense BondCategoryOtherBondSmall Loan Act License BondPlain descriptionA Small Loan Act License Bond is required for businesses in Alaska that lend small amounts of money to consumers. This $25,000 bond acts as a financial guarantee to the State of Alaska that the lender will follow all st…Who needs this bondSmall loan lenders (also called small loan companies) applying for or holding a license to make small loans in Alaska under AS 06.20 (Alaska Small Loans Act) must obtain this bond. This includes any business entity or i…
