Frequently Asked Questions
Q: When was Lakota Funds started?
Q: What community does The Lakota Funds serve?
Q: What types of programs/services does Lakota Funds provide to the residents and tribal members of the Pine Ridge Indian Reservation?
Q: Does Lakota Funds Provide grants for community projects?
Q: What happens when people don’t pay back loans to the Lakota Funds?
Q: What is the Wawokiye Business Institute (WBI)?
Q: Can someone donate or invest into the Lakota Funds?
Q: How do you qualify for a loan?
Q: If I am not a member of the Oglala Sioux Tribe can I qualify?
Q: I don’t live on the Reservation but am an enrolled member; can I get a loan?
Q: I have bad credit; does that automatically disqualify me for a loan?
Q: Do I need collateral to get a loan?
Q: What can I use as collateral?
Q: What can loan proceeds be used for?
Q: What interest rate can I expect to pay if approved?
Q: How do I start the application process?
Q: When was Lakota Funds started?
A: Lakota Funds was started in 1986 as a project of the First Nations Development Institute.back to top
Q: What community does The Lakota Funds serve?
A: Lakota Funds serve the Oglala Lakota Nation, an area known as The Pine Ridge Indian Reservation. The Pine Ridge Indian Reservation includes Shannon county and parts of Bennett and Jackson counties. The reservation is located in South Western South Dakota.back to top
Q: What types of programs/services does Lakota Funds provide to the residents and tribal members of the Pine Ridge Indian Reservation?
A: Lakota Funds provides an array of services to the Pine Ridge Indian Reservation that include
Micro Loans - $5,000 or less
Small Loans - $5,001 - $25,000
Artisan Loans - $5,000 or less
Artisan Loans - $5,001 - $25,000
Business Loans - $25,000 - $200,000
Technical Assistance through the Business Success Coaches of WBI
Individual Development Accounts through the Lakota Tiwahe savings program
Low income housing through Wanbli Hohpi Otipi housing project
Business incubator through the Lakota Fund Trade Center.
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Q: Does Lakota Fund Provide Grants for community projects?
A: No. Lakota Funds is a certified Native American Community Development Financial Institution. At the present time, Lakota Funds does not provide grants. We provide loans to small business and entrepreneurs that must be paid back with interest.
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Q: What happens when people don’t pay back loans to the Lakota Funds?
A: Collateral cannot be returned to the borrower until the loan is paid in full. It affects the borrower’s ability to get loans in the future and it affects your overall credit score. Not paying back a loan to the Lakota Funds also affects other people in the community who want to get a loan through the Lakota Funds because funds from the lending pool aren't paid back.
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Q: What is the Wawokiye Business Institute (WBI)?
A: The Wawokiye Business Institute (WBI) is a project of The Lakota Funds in partnership with Oglala Lakota College and The Pine Ridge Area Chamber Of Commerce. WBI provides one to one, client centered business success coaching designed to assist business owners at all stages of their businesses. WBI is not a separate organization but rather a project of Lakota Funds designed to provide a bridge of support to existing and potential loan recipients of Lakota Funds
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Q: Can someone donate or invest into the Lakota Funds?
A: Lakota Funds exists because many Institutions and Individuals have either donated money as a tax deductible contribution or invested their money to get a return on their investment with a tremendous social impact.
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Q: How do you qualify for a loan?
A: In order to qualify for a loan we will look at the following criteria:
• Are you a member of the Oglala Sioux Tribe?
• Do you reside on the Pine Ridge Indian Reservation?
• Is your business currently located on the Pine Ridge Indian Reservation?
• Credit history
• Verified capacity to repay loan.
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Q: If I am not a member of the Oglala Sioux Tribe can I qualify?
A: The Lakota Funds is chartered by the Oglala Sioux Tribe which states borrowers must be an enrolled member of the tribe. However if you do not meet this requirement an exception could be made if a co-signer or co-borrower is an enrolled member.
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Q: I don’t live on the Reservation but am an enrolled member; can I get a loan?
A: You and your business must reside within the boundaries of the Pine Ridge Indian Reservation or in a qualifying area that can be explained by the staff at the Lakota Funds.
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Q: I have bad credit; does that automatically disqualify me for a loan?
A: No! Many of our clients have poor credit or no credit history. Our staff will work with you in rebuilding your credit record. If your record is poor, we may ask that you get a cosigner. WBI Success Coaches are here to equip you with the tools to repair your credit.
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Q: Do I need collateral to get a loan?
A: Yes, collateral will probably be required. The amount and term of the loan will determine the type and value of collateral necessary. Business loans are not grants, therefore if for some reason you cannot repay the loan, Lakota Funds will need to be repaid by the sale of the collateral.
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Q: What can I use as collateral?
A: We can use a vehicle, business equipment, livestock, real estate, and other items of value that you own and can provide clear title. If you are planning to use your loan to buy additional equipment or vehicles, we can use the new purchase as collateral, as well. All collateral must be accessible from the Oglala Sioux Tribe.
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Q: What can loan proceeds be used for?
A: Loan proceeds will be preapproved and disbursed by the loan officers and may be used to:
• Purchase inventory, materials and/or equipment
• Purchase real estate
• Renovate/upgrade
• Working Capital
• Debt Restructure
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Q: What interest rate can I expect to pay if approved?
A: The interest rate is determined by the borrower’s risk rating. Risk rating is determined by evaluation of the borrower’s 4 C’s: capacity, character, collateral, and cash flow.
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Q: How do I start the application process?
A: Click here to apply! You can get started and come back later to finish as long as you do it within 30 days. After that, you get to start all over!
Or, if you are not comfortable doing the online application you can print out the application and then send or bring it in; or call 455-2500 and ask for assistance. If you are not ready to apply and need some help developing your business plans first, you can also ask for that assistance by calling 455-2500 and talking with a Success Coach or Loan Officer.
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