Indian Tribes and Tribal Corporation Loans

The Farm Service Agency (FSA) offers direct and guaranteed loans to farmers and ranchers to promote, build, and sustain family farms for a thriving agricultural economy. The goal of FSA's farm loan program is to provide supervised credit and manageme

To assist Indian tribes to become owners of additional property within the reservation to advance and increase current operations, provide financial prospects for Native American Communities, increase agricultural productivity, and preserve farmland for future generations. FSA serves as a valuable resource to extend credit to Indian tribes or tribal corporations that do not qualify for standard commercial loans.

Applicants must meet the requirements addressed: I. Submit a completed Agency application form, FSA-2620; II. Obtain an option or other acceptable purchase agreement for land to be purchased with loan funds; III. Be a Native American tribe or tribal corporation of a Native American tribe without adequate uncommitted funds based on Generally Accepted Accounting Principals, or another financial accounting method acceptable to the Secretary of Interior to acquire lands or interests therein within the Native American tribe's reservation for the use of the Native American tribe or tribal corporation or the members of either; IV. Be unable to obtain sufficient credit elsewhere at reasonable rates and terms V. Demonstrate reasonable prospects of success in the proposed operation of the land to be purchased with funds provided under this part by providing; - a feasibility plan for the use of the Native American tribe's land and other enterprises and funds from any other source from which payment will be made; -a satisfactory management and repayment plan; and - a satisfactory record for paying obligations. VI. Unless waived by the FSA Administrator, not have any outstanding debt with any Federal Agency which is in a delinquent status; VII. Not be subject to a judgement lien against the tribe's property arising out of a debt to the United States; VIII. Have not received a write-down as provided in within the preceding 5 years.

Native American tribe or tribal corporation established pursuant to the Indian Reorganization Act seeking a loan; Native American tribe is: (1) An Indian tribe recognized by the Department of the Interior; or (2) A community in Alaska incorporated by the Department of the Interior pursuant to the Indian Reorganization Act.

Loan funds may only be used to: I. Acquire land and interests therein (including fractional interests, rights-of-way, water rights, easements, and other appurtenances (excluding improvements) that would normally pass with the land or are necessary for the proposed operation of the land) located within the Native American tribe's reservation which will be used for the benefit of the tribe or its members. II. Pay costs incidental to land acquisition, including but not limited to, title clearance, legal services, land surveys, and loan closing. III. Refinance non-United States Department of Agriculture preexisting debts the applicant incurred to purchase the land provided the following conditions exist: (1) Prior to the acquisition of such land, the applicant filed a loan application regarding the purchase of such land and received the Agency's approval for the land purchase; (2) The applicant could not acquire an option on such land; (3) The debt for such land is a short term debt with a balloon payment that cannot be paid by the applicant and that cannot be extended or modified to enable the applicant to satisfy the obligation; and (4) The purchase of such land is consistent with all other applicable requirements of this part. IV. Pay for the costs of any appraisal conducted pursuant to this part.

Each loan will be scheduled for repayment over a period not to exceed 40 years from the date of the note.

No loan will be made until all Federal and state statutory and regulatory environmental requirements have been complied.

The agency will delineate selection criteria in the NFO posted on grant.gov.

If a loan is approved, FSA will notify the applicant in writing of: 1. the approved use of loan funds 2. the interest rate 3. the term of the loan 4. the collateral that will be required to pledge to secure the loan 5. when the money is expected to be available 6. any pre-loan closing requirements Responsibilities as an FSA direct loan borrower- The applicant will need to sign and return the letter accepting the loan conditions. Loan closing will be scheduled as soon as possible after loan approval. Normally, loan funds are provided within 15 days of approval. FSA receives funding for loans and guarantees on a fiscal year basis, and the demand for some loan types may exceed the level of funding received. When this occurs, a loan can be approved subject to the availability of funding, but it cannot be closed until additional funding is received.

Within 60 calendar days after receiving a complete loan application, the Agency will complete the processing of the Direct loan request and notify the applicant of the decision reached, and the reason for any disapproval.

Applicants may reapply for an FSA loan at any time. Applicants who were given a denial of a loan request will be advised of potential actions or alternatives that might resolve or help resolve the issues that resulted in the denial of the loan request. Applicants previously given a loan denial must establish that substantial change has occurred, since the denial decision.

FLP applicants and borrowers have the right to request reconsideration, file appeals, and enter alternate dispute resolutions about adverse decisions. If a loan is not approved, FSA will provide written notification of opportunities to request: Reconsideration Applicants are provided with the opportunity to meet with the FSA loan officer to present additional information and explain why they believe FSA's decision may be in error; Mediation A process for resolution of a disagreement. A trained neutral mediator assists two or more parties who disagree by looking at the issues, considering all available options, and attempting to agree on an acceptable solution; Appeal to the Department of Agriculture National Appeal Division (NAD), an independent organization within USDA, where they may present evidence which demonstrates why they believe that FSA's decision may be wrong.