Incentives Directory

Navajo Business and Industrial Development Fund

AGENCY: Navajo Nation, Division of Economic Development Support

DESCRIPTION: The division provides loans or loan guarantees to qualified Navajo individuals or Navajo-owned businesses. The program is intended to foster the establishment of new businesses or the expansion of existing businesses within the Navajo Nation's territorial jurisdiction.

ELIGIBLE USES:

  • Funds can be used for any business purpose including, but not limited to: the purchase of equipment, working capital, the construction of permanent facilities and the purchase of existing business interests, excluding goodwill.

 

PROGRAM/LOAN STRUCTURE:

  • Maximum Program Benefits: Minimum loan is $10,000; maximum loan is $150,000 for new businesses and 10,000 to $200,000 for expanding business. Loan not to exceed 90% of purchase price of assets, or 95% of value of permanent improvements on a reservation site.
  • Equity: Requires 10% equity from borrowers. Those unable to meet this requirement can apply for financial assistance from the Bureau of Indian Affairs.
  • Maturities: Depends on how the funds will be used:
  • Working capital: not to exceed 48 months;
  • Working capital for wages: not to exceed 12 months;
  • Equipment: useful life, not to exceed 72 months;
  • Permanent improvements: useful life, up to 204 months;
  • Existing business interests: not to exceed 84 months; and
  • The term of any loan is not to exceed two-thirds of the remainder of any land lease. If loan funds are to be used for more than one of the above categories, then the maximum term will be a weighted average based on the amount for each use.
  • Rates: Minimum of 1% above Wall Street Journal prime rate.

 

QUALIFICATION CRITERIA/COMMENTS:

  • Must be an enrolled member of the Navajo Tribe.
  • Partnerships, corporations or forms other than sole proprietorships must be 100% Navajo-owned and ?controlled.
  • The business venture must be located within the territorial jurisdiction of the Navajo Nation.

 

Visit the homepage at http://www.navajobusiness.com/index.htm, the business programs page at http://www.navajobusiness.com/doingBusiness/Programs/ProgramsFinAsst2.htm, and download the guidelines at http://www.navajobusiness.com/pdf/DngBus/Loans/BIDF.pdf. Call the main office at (928) 871-6544.

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