The intent of the SBDF program is to reinvest Band money to improve the quality of life for Band members. The appropriation of funds by the LLBO marks an on-going commitment toward quality services and a healthy loan program. SBDF program goals are to:
- Stimulate the tribal economy through job creation and business start-ups;
- Generate economic development on tribal lands and for the benefit of the LLBO;
- Assist Band members in achieving self-sufficiency and thus contribute to the well being of our communities;
- Provide an economic partnership between individual Band members and the tribal government;
- Establish a healthy, self-sustaining revolving loan program;
- Provide technical assistance, ensuring successful businesses; and
- Assist existing businesses with expansion and development needs.
Financing Strategies
The SBDF is limited in its ability to fill the capital needs of all Band members. In order to maximize achievement of the program’s business development strategy the SBDF shall:
- Focus on businesses that demonstrate a high potential to train and employ Band members;
- Target businesses that will provide services to the small, rural communities located on tribal lands;
- Leverage private sector dollars by offering short-term working capital loans and by reducing the risk of private lenders by allowing them to adequately collateralize their loans;
- Modified terms may be used to accommodate special needs of borrowers and a subordinate position on collateral may be used when a private financial institution is the primary lender;
- Offer terms that are dependent upon the projected life of the assets to be financed and the cash flow requirements of the borrower; and
- Consider all projects that fit within the parameters of the policy guidelines as described herein.
Regional Area Defined
SBDF’s primary service area shall consist of the Leech Lake Reservation and businesses located on property no more than twenty (20) miles outside of any Leech Lake Reservation boundary. A business that is located, or is proposed to be located more than 20 miles from the boundary of the Leech Lake Reservation shall not qualify for this program unless the business applicant can make a strong case for the following:
- The business will have a direct economic impact for the benefit of the Leech Lake Band of Ojibwe,
- The business will provide jobs for Tribal members,
- The business will primarily serve on-reservation customers, and
- The business complements the Band’s business development strategies.
SBDF Proposed Fee Schedule
ORIGINAL LOAN
$25 application fee for micro-loan
$145 application fee for large loan to cover administrative costs and filing security documents
1% of total loan amount for closing costs
FEE FOR LATE PAYMENTS
If the regular monthly payment is not received within 15 days of the due date, Borrower shall be charged a late fee of 2% of the monthly payment. The late charge shall be considered unpaid if not received within 30 calendar days of the missed due date for which it was imposed. Any unpaid late charge(s) shall be added to principal. Acceptance of a late charge by the Agency does not constitute a waiver of default.
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| Loan Requirement Check List |  |
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More Information
Micro Loans ($5000 or less)
Large Loans (over $5000)