Minnesota Indian Business Loan Program

This post is part of a series of posts designed to help you acquire a loan for your small business. The following posts cover methods for public financing of your small business

Indian Business Loan Program

(651) 259-7424

The purpose of the Indian Business Loan Program (IBLP) is to support the development of Indian owned and operated businesses and to promote economic opportunities for Indian people throughout Minnesota. Applicants must be an enrolled member of a federally recognized Minnesota-based band or tribe. Businesses can be located anywhere in the state, although the bulk of the loans are made to businesses on a reservation.

Entrepreneurs may apply for a loan to finance the start-up and expansion of a for-profit business. Start-up and expansion costs, including normal expenses such as machinery and equipment, inventory and receivables, working capital, new construction, renovation, and site acquisition are eligible. Financing of existing debt is not permitted.

Each band or tribe is allocated funds from the Indian Business Loan Fund, based on the number of enrolled members. Loans may not exceed the funds available to any one tribe. Loan amounts are limited to 75 percent of the total project cost. Owners must provide a portion of the financing needed to undertake the project. The amount varies between 5 percent and 10 percent depending on the requirements of each band or tribe.

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.

The department accepts applications on an on-going basis, subject to the availability of funds. These applications are forwarded to the appropriate Tribal Council for further consideration. The department administers this program and services many of the loans.

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