HCCDC has received funding from the Nebraska Microenterprise Partnership Fund and the HUD Rural Housing Economic Development in order to offer business loan funds through a microloan fund.
The microloan fund will be available in amounts up to $25,000 for small and start-up businesses that will create or retain at least one position for every $25,000 loaned.
The intermediate loan fund has not yet been capitalized, but will be available in amounts up to $150,000 to new or expanding businesses that will create or retain at least one position for every $35,000 borrowed.
Loans will be made to new and existing businesses as well as to community development projects.
Loans will only be made to projects that demonstrate the financial ability to repay the loan and/or provide sufficient assets to collateralize the loan.
The following priorities will apply: – The creation of quality jobs for tribal residents of the Reservation – Indian-owned businesses on or near the Reservation – Projects contributing directly to the economy on the Reservation – Projects furthering community development on the Reservation – Projects that will move HCCDC’s Loan Fund towards self-sufficiency.
Service Area – Any new or existing business or community development project that is located on or near the Winnebago Indian Reservation will be eligible to apply for a loan.
– Any Omaha, Santee Sioux, or Ponca Tribal member who lives on or near their respective reservation and who lives within the state of Nebraska who has an existing business, or has interest in starting a new business, will also be eligible to apply for a loan.
– “On or near the Indian Reservation” includes all areas within the legal boundaries of the Reservation, as well as those communities where a person living on the Reservation and seeking employment could reasonably be expected to commute to and from work in the course of a work-day.
Rates: The Loan Committee can make loans to eligible borrowers at interest rates and under conditions determined by HCCDC Loan Fund to be most appropriate in achieving the goals of HCCDC.
However, loans will have a minimum annual interest rate of three (3) points above the current New York Prime Rate, but in no event may the annual interest rate be above twenty (20) percent.
Should the New York Prime Rate fall below six (6) percent, the minimum interest rate is not required to be raised above 9% if to do so would compromise the ability of the Fund to implement its strategy.
Loans between $500.00 and $1000.00: Shall be at a rate not less than 17%, and will automatically be assessed $25.00 for loan origination, and this loan must be paid in full within one (1) year.
Terms: Loan terms for amounts above $1000.00 in value will generally not exceed seven (7) years.
However, terms will be established by the Loan Committee and will be determined based on the purpose of the loan, expected repayment ability of the borrower, and the useful life of the assets being offered as collateral.
Ho-Chunk Community Development Corporation
Address: 106 S Tallman St