Indian Business Loan Program
The Minnesota Indian Business Loan Program supports the development of Indian-owned and operated businesses and promotes economic opportunities for Indian people throughout Minnesota.
DEED accepts applications on an on-going basis, subject to the availability of funds. The department evaluates all applications and forwards a recommendation to the appropriate tribal council for final consideration. The Minnesota Chippewa Tribe has authority to use IBLP funds to make loans to businesses owned and operated by an enrolled member of its six participating bands – Bois Forte, Fond du Lac, Grand Portage, Leech Lake, Mille Lacs, and White Earth.
Applicants must be enrolled members of a federally recognized Minnesota-based band or tribe. Businesses must be wholly owned by an enrolled member and can be located anywhere in the state, although the bulk of the loans are made to businesses on a reservation.
Loan proceeds may cover start-up and expansion costs, including normal expenses such as machinery and equipment, inventory and receivables, working capital, new construction, renovation, and site acquisition. Financing of existing debt is not permitted.
Terms and Interest
Interest rate may be between 2 percent and 10 percent. Terms for real estate purposes are limited to no more than 20 years. Non-real estate loans are limited to no more than 10 years. Loans may not exceed 75 percent of the projects costs or the balance of the funds available to any one tribe.
Owners must provide a portion of the financing needed to undertake the project. The amount varies between 5 percent and 10 percent, depending upon the requirements of each band or tribe.
For More Information
Contact Bart Bevins at (651) 259-7424 or email Bart.Bevins@state.mn.us