Some frequently asked questions and answers about our programs and services. If your question isn’t answered here, please contact us.
What is a CDFI?
A CDFI, or community development financial institution, is a specialized financial institution that provides a unique range of financial products and services in economically distressed markets that are underserved by traditional financial institutions. CDFIs include regulated institutions such as community development banks and credit unions, and non-regulated institutions such as loan and venture capital funds.
What community does Lakota Funds serve?
Lakota Funds serves the nine community districts located on the Pine Ridge Reservation and within 50 miles of the exterior boundaries of the Reservation.
Can someone donate to or invest in Lakota Funds?
Yes. 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.
If I am not a member of the Oglala Sioux Tribe, can I qualify for a loan?
Yes. Lakota Funds' loan policies state borrowers must be an enrolled member or enrollment pending of the Oglala Sioux Tribe, be the spouse/partner of an enrolled member of the Oglala Sioux Tribe, or be an enrolled member of a federally recognized tribe. The loan applicant must also reside and base his/her business on the Pine Ridge Reservation or within 50 miles of the exterior boundaries of the Reservation as recognized by the Oglala Sioux Tribe.
I have bad credit. Does that automatically disqualify me for a loan?
No! Many of our clients have poor credit or no credit history. If this is the case for you, our staff will work with you in rebuilding your credit record, or we may ask that you get a cosigner.
Do I need collateral to get a loan?
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. We can use a vehicle, business equipment, livestock, real estate, or 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.
What happens when people don’t pay back loans to Lakota Funds?
If a loan is not paid back, Lakota Funds will need to be repaid through the sale of collateral. Failing to repay a loan affects the borrower's ability to get loans in the future as well as their overall credit score. Not paying back a loan to Lakota Funds also affects other people in the community who want to get a loan from us because funds from the lending pool aren't paid back.
How do I start the application process?
Visit our Lending page to see all of our offerings and apply online. If you need assistance filling out the application, please call us at (605) 455-2500. If you are not ready to apply and need some help developing your business plans first, please contact one of our success coaches.