Loan Guaranty Fund

Agency: Bureau of Indian Affairs

Program: Indian Loan Guaranty Fund

Program Description: The purpose of the program is to finance American Indian and Alaska Native owned commercial, industrial, agriculture or business activity organized for profit. The business being financed must be on or near an Indian reservation and the loan must be secured from a bank or savings and loan association.

Eligible Communities: A borrower must be a federally recognized American Indian tribe or Alaska Native group or an enrolled member of such tribe or group; or, a business organization with no less than 51% ownership by American Indians or Alaska Natives.

Funding Information: A maximum of $5.5 million for tribes, groups or organizations, and a $500,000 limitation on guaranteed loans to individuals. Equity requirements include a minimum of 20% of project funding in either cash or unencumbered assets to be used in the proposed business. Maturity is determined by lenders issuing the loan which is generally based on the loan proceed use and applicant’s repayment capability, with 30 years being the maximum maturity term. The percentage of a loan that is guaranteed is the minimum necessary to obtain financing, but may not exceed 90% of the unpaid principal and interest on the loan. The lender is charged a guaranty premium fee of two percent of the amount guaranteed. This fee may be charged to the borrower and included as part of the loan proceeds.

Timelines: Applications are accepted year round.

Contact: Alsace LaFrambose