(a) For an applicant to be eligible for a loan under AS 44.33.950 — 44.33.990, the applicant shall

1. (1) be a resident of the state, as determined under (b) of this section;
2. (2) provide a reasonable amount of money from other nonstate sources for use on any project or enterprise for which money from a loan will be used; and

3. (3) if the requested loan amount is more than $35,000, provide to the department a document from a state financial institution stating that

   1. (A) the applicant has been denied a loan for the same purpose; or
   2. (B) a loan from the financial institution is contingent on the applicant also receiving a loan from the fund.

(b) To meet the residency requirements of (a) of this section, the applicant

1. (1) shall physically reside in this state and maintain a domicile in this state during the 12 consecutive months preceding the date of application for the program; and

2. (2) may not have

   1. (A) declared or established residency in another state; or
   2. (B) received residency or a benefit based on residency from another state.