BIA Indian Loan Guarantee Fund « Back to Search Results
BIA Indian Loan Guarantee Fund

Category: Federal Incentives, Grants & Loans

AGENCY: Bureau of Indian Affairs (BIA), Division of Financial Assistance
DESCRIPTION: Guaranteed loans that are made by private lenders to eligible applicants for up to 90% of the unpaid principal and interest due.
• Funds may be used to finance Indian-owned commercial, industrial or business activities organized for profit, provided eligible Indian ownership constitutes at least 51% of the business. Loans must benefit the economy of an Indian reservation. Also, interest subsidies might be granted when the business is incurring losses.
• Maximum Program Benefit: Individual guarantees are limited to $500,000; $5.5 million maximum for Tribes or organizations.
• Equity: Minimum of 20% of project funding must be cash or unencumbered assets to be used in the proposed business.
• Term: Varies with use and repayment capacity, but does not exceed 30 years.
• Rates: Variable interest rate to be adjusted no more than quarterly. Maximum interest rate for a 90% loan guarantee is equal to 1.5% above the New York prime; the maximum for an 80% loan guarantee is equal to 2.75% above the New York prime.
• Interest Subsidy: Amount is based on the difference between the Treasury interest rate for direct ?loans and the interest rate charged by the lender. Currently, a maximum subsidy would reduce the ?effective interest rate to 6.625%. Subsidies are limited to the first three years of the loan.
• Premium Charges: A one-time premium payment of 2 % of the guaranteed portion of a loan is charged to the bank. The lender may charge the premium to the borrower. QUALIFICATION CRITERIA/COMMENTS:
• Applicant must be a federally recognized tribe or Alaskan Native group; a member of such a tribe or group; or an Indian-owned corporation, partnership or cooperative association.
• Indian ownership must be at least 51% of the business.
• Application includes financial statements, resumes and organizational papers.
• For more information visit and

Contact the office of
Economic Development
1849 C Street, NW
MS 4641-MIB
Washington, DC
Phone: (202) 219-0740.

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