SSBCI – DAWN MN

State Small Business Credit
Initiative (SSBCI) program

ELIGIBLE APPLICANTS INCLUDE MEMBERS OF THE BOIS FORTE BAND OF CHIPPEWA, FOND DU LAC BAND OF LAKE SUPERIOR CHIPPEWA, AND GRAND PORTAGE BAND OF LAKE SUPERIOR CHIPPEWA.

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Applicant Benefits

ALL PROGRAMS INCLUDE:

Free local technical assistance provided throughout the process, from application through duration of loan
Open to both start-up and existing businesses
Collaboration with a lead lender, whether that be a bank or other non-profit or governmental partner
Easy application process for bank & bank client
Applicant able to choose preferred lender

Local approval authorization
Both for profit & nonprofit organizations eligible
Debt refinancing is allowed
Broad eligible use of funds including:

Land & building acquisition
Land improvements
New building construction
Building renovation
Machinery purchase/equipment

Loan Participation

The Band buys part of a loan from the lead lender.
Maximum loan: $250,000.
Up to 50% participation in eligible costs.
Shared first position lien with the lead lender.
Band’s interest rate: 3% – 5%, set at approval.
Lead lender’s interest rate negotiated between business and bank.

Loan Guaranty

The Band guarantees up to 75% of a new bank loan, up to $187,500.
Terms and conditions are negotiated between the Band and the lender.
The loan can be term debt, revolving debt, or a single-payment note.

Collateral Support

Borrowers with collateral shortfalls apply for Band coverage.
The Band provides cash collateral accounts to enhance borrower coverage.
Accounts cover all or part of the collateral shortfall.
If approved, the Band deposits cash into an interest-bearing account with the lender.
Up to 50% of the loan may be deposited and pledged as collateral.
Maximum coverage is $250,000.
The Band draws down the account as the loan principal is paid.
In full default, the lender can access the collateral account minus a liquidation fee.