Content provided by the Catalog of Federal Domestic Assistance
15.124 Indian Loans_Economic Development
BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR
Snyder Act of 1921, Public Law 67-85, 42 Stat. 208, 25 U.S.C. 13; Indian Reorganization Act of 1934, Section 10, Public Law 73-383, 48 Stat. 986, 25 U.S.C. 470; Public Law 93-262, 88 Stat. 77 through 83, 25 U.S.C. 1451; Indian Self-Determination and Education Assistance Act, Public Law 93-638, as amended, 25 U.S.C. 450 et seq.
To provide assistance to Federally Recognized Indian Tribal Governments, Native American Organizations, and individual American Indians in obtaining financing from private sources to promote business development initiatives on or near Federally Recognized Indian Reservations.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
Loans may be used to finance commercial, industrial, agricultural, or business activities organized for profit. Loan guarantees to private lenders will only be provided if funds otherwise would be unavailable to the borrower. Funds may not be used for speculation. The financial assistance must be used on or near an Indian Reservation.
Applicant Eligibility: Federally Recognized Indian Tribal Governments, Native American Organizations authorized by Indian tribal governments, and individual American Indians.
Pre-application Coordination: None. This program is excluded from coverage under E.O. 12372.
Formula and Matching Requirements: The maximum percentage of guaranty is 90 percent of unpaid principal and interest. Borrower must have 20 percent equity in business being financed.
POST ASSISTANCE REQUIREMENTS:
Reports: Lenders will submit quarterly reports on the status of loans to the office that approved the guaranty.
Account Identification: 14-4415-0-3-452.
Two hundred thirty million dollars of guaranteed loans have been awarded.
REGULATIONS, GUIDELINES, AND LITERATURE:
25 CFR 103.
Regional or Local Office: Lenders must submit applications to the local Bureau of Indian Affairs agency office as listed in Appendix IV of the Catalog or with the Tribal Government administering the program.
EXAMPLES OF FUNDED PROJECTS:
A Bureau of Indian Affairs 90 percent loan guarantee of $5.5 million for a Tribe to construct and operate a tire recycling business, which is one of the first vertically integrated crumb rubber processing facilities in North America. Another example is a BIA 90 percent loan guarantee of $763,500 for a Tribe's health clinic expansion. This expansion was required to provide the quality and level of services the Tribal members needed. Another example is a BIA 90 percent loan guarantee of $4.5 million for a Tribe's 96-unit apartment complex expansion. This expansion will assist in diversifying the Tribal economy in the Northern New Mexico region.
CRITERIA FOR SELECTING PROPOSALS:
Economic enterprises must demonstrate a reasonable prospect for repayment, must be organized for profit, and be at least 51 percent Indian owned and actively managed. Project must be on or near a federally recognized Indian Reservation. Project must provide economic development to a federally recognized Indian reservation.