Business Lending Services and
Credit Builder Loans
Lending for the purpose of starting or growing reservation businesses is the heart of everything we do. Savvy business owners borrow as little as possible and then only when they are sure they will be able to pay it back and maintain their reputation as a good credit risk.
You have several options as to where to start with developing a successful loan application. Please know that we have to understand how your business is going to make money and be stable enough for you to repay your loan--as scheduled. Most of the money we lend to reservation businesses comes from people who loaned the money to us to relend. We have to pay them back and to do that, we have to get paid back by you in a timely and regular way.
That said, we want to work with you to make your business a success. To start, we need to see what kind of money you think you will make. You can do that on a napkin or you can use this little form to develop a fully thought out cash flow projection [Cash Flow Worksheet (.xls)]. If your want more than $5,000 you need to complete the Core Four: Business Planning Class and create a Business Plan for your business. Or, you can present three years of financial records and tax returns to document your success to date and show how the loan will strengthen your business.
Loan Products:
Business Loans – Lakota Funds offers amounts ranging from as little as $100 up to $200,000 to small businesses:
Business loans can be set up for repayment for you to 15 years depending on the loan amount and collateral and now can be set up as a line of credit where the borrower only advances (and repays) what they need.
- Micro Loans - $5,000 or less
- Small Loans - $5,001-$25,000
- Business Loans - $25,000 - $200,000
Credit Builder Loans – Lakota Funds started as a micro lender modeled after the Circle Banking Project in Bangladesh, and has since helped over 1,600 craft people and artists. The portfolio has grown to over $4.4 million of investment in our community, and our loan size has grown from $500 to $200,000, for everyone from small artists to resorts, contractors and stores. Lakota Funds can also package loans with off reservation banks for larger projects:
- Credit Builder Loan - up to $2,500
- Micro Loans - $5,000 or less
- Small Loans - $5,001 to $25,000
- Business Loans - $25,000 to $200,000
- Operating Line of Credit
Loan can be used for the following purposes:
- Purchase Inventory
- Purchase Materials
- Purchase Equipment
- Real Estate or Renovation
- Working Capital
- Debt Restructure
You can apply now by contacting Tony Taylor and or Tawney Brunsch in the loan department for directions and assistance in filling out a loan application. Or, you may begin on your own filling out an online loan application to see what will be needed for a complete application. Or, contact one of our coaches to help you.
We are willing and able to work with you wherever you are with your plan and your skills. Typically, we will need your most recent tax returns, a clear price list of what you will be buying with the loan proceeds and who you will be buying it from. And, we need a clear idea of what you will be selling, where you will be selling it, who will be buying it, and why they will be buying from you rather than someone else. Eventually you need to know how you will keep track of your business records and who will help you with the bookkeeping. Finally, we need a clear idea of what you will be putting into the business in the way of your own resources. (Your resources can be time, energy, land, equipment, savings, co-signers, collateral, pre-arranged sales contracts, certifications and skills…) The more thought and research you put into these simple questions the more likely it is that we can make you a loan and, more importantly, the more successful your business will become.
You can use our business coaching and training to help you get started with a good solid business plan that can be your roadmap to success. We can offer you opportunities to improve your credit through one day Credit Where Credit is Due workshop and through our Credit Builder loans. (Good credit always helps a business get better terms on loans for things like vehicles, equipment, inventory, and advertising.) You can also use the matched savings (Family Asset Building) for help building up some savings to invest in the business and keep down your monthly payments for loans. And, you can see more about our Financial Skills class offerings and Core Four Business Planning courses here.