Indian Loan Guarantee and Insurance Program (ILGP)
Federal program guaranteeing up to 90% of loans made to Native American-owned businesses, tribes, and ANCSA corporations.
About this program
Run by the Bureau of Indian Affairs' Division of Capital Investment, the ILGP has helped reduce risk for over 50 years for lenders offering loans to American Indian/Alaska Native (AI/AN) tribes and individuals. The program provides up to 90% guarantee or insurance on loans used for construction, working capital, equipment purchases, business acquisition, refinancing, and lines of credit. In 2020, DCI provided 18 loan guarantees totaling over $125 million plus 21 insured loans.
Eligibility
For-profit or nonprofit enterprises at least 51% owned by Alaska Natives, American Indians, ANCSA corporations, or federally recognized tribal entities. Owner must operate the business day-to-day and invest at least 20% of own resources.
Requirements
- Document enrollment in a federally recognized tribe or AI/AN-owned entity
- Secure a commitment for financing from an approved lender (most banks and CDFIs qualify)
- Provide job creation/retention plan, especially jobs for Native Americans