NATIVE AMERICAN DEVELOPMENT CORPORATION  

NATIVE AMERICAN SMALL BUSINESS

MICRO - LOAN PROGRAM

 

CAPITALIZATION:  The initial capitalization for the NADC Micro-Loan Program was with $21,000 from the Billings Area Bureau of Indian Affairs to establish a loan guarantee pool.  These funds will be leveraged with Program Related Investment (PRI) Funds from the Rural Development & Finance Corporation of San Antonio, Texas and other funds.

PURPOSE:  The purpose of this program is to make business loans and provide technical assistance to community-based, Native American organizations and entrepreneurs who are seeking to improve their rural communities.  It's mission is to create or retain jobs in Native American communities by helping organizations and entrepreneurs get the financing and technical assistance they need to undertake business and community development activities in their communities.

ELIGIBLE APPLICANTS:   Must be a member or a descendant of a member of a state or federally recognized tribe, living in the States of Montana or Wyoming.

POLICIES / TERMS:

Ø             Loan limits:    $500 - $25,000 per loan

Ø             Loan terms: loan committee decision based on individual loan

Ø             Interest rate: a fixed per annum finance charge equal to the prime rate of Interest in effect on January 1 of the calendar year in

calendar year in which NADC approves a Borrower's loan as published in the Wall Street Journal, plus 1.0% shall be assessed on all loans.

Ø             Collateral required for all loans

 

DOCUMENTATION REQUIRED:

Ø             Borrower's written business plan;

Ø             Borrower's personal federal tax returns for the last three years;

Ø             If existing business, business' federal tax return for the last three years;

Ø             Borrower's organizational documents (articles of incorporation, bylaws, shareholder agreements, operating agreements, partnership agreements, etc);

Ø             If required by law to obtain a business license, the Borrower must provide;

Ø             Borrower may also be required to provide additional documentation, including evidence that it owns the collateral that it will pledge as collateral for the Micro-loan or copies of any leases in which it has an interest.

TECHNICAL ASSISTANCE:  Technical assistance may be obtained through the Native American Small Business Development Center located in this office, Billings or the local community Tribal Business Information Center.

For more information please call the NADC Office at (406) 259-3804.

 

NADC MICRO LOAN APPLICATION

 

 

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