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Indian Loans-Economic Development

Program Descriptions

Program Number



Indian Loans-Economic Development


Federal Agency




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 to improve the economies of Federally Recognized Indian Reservations.


Types of Assistance

Guaranteed/Insured Loans.


Uses and Use Restrictions

Loans may be used to finance commercial, industrial, agricultural, or business activities, which benefit Federal Indian Reservation economies. Loan guarantees to private lenders will only be provided if funds otherwise would be unavailable to the borrower.


Eligibility Requirements

Applicant Eligibility

Federally Recognized Indian Tribal Governments, Native American Organizations authorized by Indian tribal governments, and individual American Indians.

Beneficiary Eligibility

Federally Recognized Indian Tribal Governments, Native American Organizations, and individual American Indians or Alaska natives. Complete information on beneficiary eligibility is found in 25 CFR, Part 103.


Individual applicants must submit a certificate signed by Bureau Agency Superintendent or authorized Tribal representative that indicates the applicant is an enrolled member or registered with a Federally recognized Indian tribal government. Federally Recognized Indian Tribal Governments and Native American Organizations must submit a resolution of the governing body of the Indian Tribe. All applicants must demonstrate their inability to obtain financing through the same institutions serving other citizens.


Application and Award Process

Preapplication Coordination

None. This program is excluded from coverage under E.O. 12372.

Application Procedure

Applications for loan guarantees should be submitted by the lender at the local Bureau of Indian Affairs Agency or Tribal Loan Administration Office. Lenders should contact the local office for information on documentation needed to complete an application.

Award Procedure

Action approving or disapproving loans is taken at various levels pursuant to delegated authority. The Bureau of Indian Affairs Regional or Field Office or Tribal Loan Administration Office notifies applicants of action taken on applications.



Range of Approval/Disapproval Time

15 to 30 days depending upon completeness of loan package.


An unsuccessful applicant may request an informal conference with the deciding official, or may appeal the denial of the application by a Bureau of Indian Affairs official to the Interior Board of Indian Appeals, or may bring suit in U.S. District Court. Full appeal procedures are found in 25 CFR, Part 2.



Assistance Considerations

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.

Length and Time Phasing of Assistance

Loan guarantees are limited to no more than 30 year terms.


Post Assistance Requirements


Lenders will submit quarterly reports on the status of loans to the Director of Indian Affairs Region in which the loan was made.


Federally Recognized Indian Tribal Governments, Native American Organizations, and tribal enterprises are responsible for obtaining audits. All nonfederal entities that expend $500,000 or more of Federal awards in a year ($300,000 for fiscal year ending on or before December 30, 2003) are required to obtain an annual audit in accordance with the Single Audit Act Amendments of 1996 (31 U.S.C. 7501 et. seq.) and OMB Circular A-133 Compliance Supplement and Government Auditing Standards. Nonfederal entities that expend less than $500,000 (for fiscal years ending after December 1, 2003) a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in OMB Circular A-133.


Loan records must be maintained for the life of the loan.


Financial Information

Account Identification



(Guaranteed Loans) FY 07 $85,485,456; FY 08 est $84,172,203; and FY 09 est $84,172,203.

Range and Average of Financial Assistance

For individuals and tribal enterprises, $150,000 to $10,500,000. For Federally Recognized Tribal Governments and Native American Organizations, $10,000,000 to $12,000,000.


Program Accomplishments

Guarantees of over eight hundred and forty-seven million dollars of loans have been awarded.


Regulations, Guidelines and Literature

25 CFR 103.


Information Contacts

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.

Headquarters Office

Office of Indian Energy and Economic Development, Assistant Secretary Indian Affairs, 1951 Constitution Ave, NW., MS-20-SIB, Washington, DC 20240. Contact: Michael A. Lucero. Telephone: (202) 513-7681.

Web Site Address


Related Programs

10.766, Community Facilities Loans And Grants


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, and be at least 51 percent Indian owned. Project must provide economic development to a federally recognized Indian reservation.


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