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 management assistance to eligible farmers to become owners or operators, or both, of family farms or to continue such operations when credit is not available elsewhere.

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.

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.