Homer Alaska - Business

ANCHORAGE — The municipality of Anchorage is creating a fund to invest in private businesses, particularly local start-ups and expansion of existing operations.

The fund money stems from a $13.2 million federal allocation.

According to the mayor's office, Anchorage is the first city in the nation to receive an allocation from the Treasury Department's state small business credit initiative.

The Anchorage Daily News says that elsewhere, states are operating such funds.

Allan Johnston — a former investment firm manager who is helping the city put the fund together — says the fund will loan money or take an ownership interest of up to 10 percent of the value of enterprises it invests in.