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.

to learn more or connect for assistance

Complete Intake for
Application Assistance

If you are ready to start your application

Go to Applications Below

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:
  1. Land & building acquisition
  2. Land improvements
  3. New building construction
  4. Building renovation
  5. Machinery purchase/equipment

Loan Participation

  • The Band purchases a portion of a loan originated by the lead lender
  • Maximum of 50% participation of eligible costs
  • Shared first position lien, with lead lender, is required
  • Band’s purchased participation interest rate between 3% – 5%
  • Interest rate set by the Band when loan is approved
  • Lead lender interest rate to be negotiated between the business and bank

Loan Guaranty

  • The Band guarantees or promises to assume the debt of a borrower if that borrower defaults
  • Terms and conditions of any guaranty will be negotiated between the Band and the lender
  • The Band will guarantee up to 75% of a new bank loan, up to a $187,500 maximum guaranty
  • The loan may be term debt, revolving debt, or a single-payment note

Collateral Support

  • Borrowers with a collateral shortfall apply for coverage through the Band
  • The Band supplies cash collateral accounts to lead lenders to enhance the collateral coverage of borrowers
  • The collateral accounts cover all or a portion of a calculated collateral shortfall
    If approved, the Band deposits cash into an interest-bearing account with the lead lender
  • Up to 50% of loan may be deposited in bank at the start of loan and this account is then pledged as collateral on behalf of the borrower
  • Based on an amortization schedule, the Band draws down the account as the loan principal is paid
  • In the event of full default, the lender has rights to access the collateral account less a liquidation fee
Download
Bois Forte
Application
Download
Fond du Lac
Application
Download
Grand Portage Application

POWERED BY

Copyright ©2024 Northspan. All Rights Reserved

202 W Superior St , Suite 600

Duluth, MN 55802

Facebook Twitter Youtube

There are times when technology cannot replace the value of human interaction. That’s why we’re proud to say that we have boots on the ground, and not just bots. 

Elissa Hansen, Northspan President & CEO and DAWN Program Manager

Get Started

We’re proud to say that we have boots on the ground, and not just bots. 

ELISSA HANSEN, NORTHSPAN PRESIDENT & CEO AND DAWN PROGRAM MANAGER

Get Started
Subscribe to our newsletter

Sign up to receive updates, promotions, and sneak peaks of upcoming products. Plus 20% off your next order.

Promotion nulla vitae elit libero a pharetra augue