SB 34-SMALL BUSINESS REVOLVING FUND  CHAIR EGAN announced the first order of business would be SB 34, relating to the small business revolving loan fund. 2:05:15 PM SENATOR PASKVAN moved to adopt the proposed committee substitute to SB 34, labeled 27-LS0286\B, as the working document of the committee. Without objection, the motion carried. 2:06:02 PM DANA OWEN, staff to Senator Egan, explained the changes to CSSB 34 from the original bill. On page 2, line 13, the word "grant" was missing, which was a drafting oversight. On page 3, lines 16 - 21 now include a turn-down provision. This gives banks a chance to make or deny loans before the business comes to the state. He explained this turn-down provision would apply to any loan in excess of $35,000, and noted that the bankers are happy with it. On line 30, new language clarifies that you must be turned down from an Alaska institution. Mr. Owen noted a memo attached to the draft CS by Legislative Legal Services Attorney Terry Bannister, which points out potential conflicts with federal law. This is not unusual. He further noted there are two revised fiscal notes. 2:08:35 PM SENATOR WIELECHOWSKI, sponsor of SB 34, said he supports the changes in the CS, and noted it is a very fair compromise. 2:09:42 PM WANETTA AYERS, Director, Division of Commerce, Community and Economic Development, said she was available to answer any questions about the fiscal notes. 2:10:26 PM CRAIG DAHL, President and CEO, Alaska Pacific Bank, Juneau, representing that bank as well as the Alaska Bankers Association, testified that both support SB 70. He said that Alaskan banks have consistently served the small business community. In addition to direct lending, all the banks have participated in federal government programs. For example, Alaska Pacific Bank has received the Small Business Association (SBA) Community Lender of the Year award for four consecutive years. Wells Fargo has received the SBA lender of the year for two consecutive years. 2:14:56 PM SENATOR PASKVAN commented it was his understanding that SB 34 focuses on new business customers, as opposed to existing customers receiving new loans. MR. DAHL replied they do not have a breakdown of those numbers, but in general there were not a lot of brand new businesses starting up in the past year. 2:16:06 PM SENATOR PASKVAN moved to report CS for SB 34 from committee with individual recommendations and accompanying fiscal notes. Without objection, CSSB 34(L&C) moved from committee.