THE NATIVE AMERICAN DEVELOPMENT CORPORATION
CAPITAL LOAN FUND
221 North Broadway, Billings, MT 59101
Ph: (406) 259-3804 Fax: (406) 259-4569
FUNDED BY: The Economic Development Administration, U.S. Department of Commerce
The Native American Development Corporation Capital Loan Fund was established in 1997 to provide financial
assistance to Native American entrepreneurs in Montana and Wyoming.
CAPITALIZATION
Initial capitalization of the Capital Loan Fund was with $500,000 from the Economic Development Administration
(EDA) and $167,000 from matching funds for a total of $667,000. Wells Fargo and U.S. Bank have donated
$50,000 each as a match.
BASIC LOAN INFORMATION
The purpose of the NACLF is to provide start-up or gap financing for businesses operating on or near a reservation
or that are individually or tribally owned. There are eligibility and lending restrictions on specific loan pools, which
are determined by what funds are currently available in the loan fund upon application. These are location of
business, type of business, and income level.
1. Loan Amount Available - The minimum loan available is $25,000 and the maximum $150,000.
At a minimum, borrowers must have a debt/equity ration of no more than 5:1.
2. Ineligible Purposes - Personal Loans, refinancing and consolidation of existing loans do not qualify for this loan.
3. Interest rates - NADC reserves the right for the Loan Committee to set the interest rate at the time of closing.
This rate is 7-12%, depending on the current interest rate.
4. Collateral - Loan amounts will not exceed 90 percent of the value of the collateral offered through the above means.
5. Terms - Seven to Ten years. The terms of an existing loan may be modified if extended to enhance the
capability of the loan fund to achieve the program's objectives.
6. Guarantees as Loan Purpose - Application for financing of loan guarantees will not be included in the loan fund's
initial round of lending, but may be considered for later projects.
7. All proceeds from interest payments at NADC will be utilized in one of the following ways:
a. To cover administrative costs related to the loan fund programs.
b. Returned to the loan fund to provide funds for additional loans.
8. A loan origination fee of one percent will be charged for all loans. This fee will cover expenses related to closing
the loan, with the exception of title insurance and appraisals.
FOR MORE INFORMATION PLEASE CALL EILEEN "TAFFY" LAFFERTY AT (406) 259-3804 or tlafferty@wtp.net