IEED

Loan Guarantee
Business: Reno-Sparks Tribal Health Center, Northern Nevada Transitional Housing
Lender: US Bank
Borrower: Reno-Sparks Indian Colony
Amount Financed: $8,000,000
Location: Reno, Nevada

Nevada federally recognized tribes benefit from an agreement with the state which allows tribal governments to collect taxes on sales occurring on tribal lands. In 2003, the Reno-Sparks Indian Colony (RSIC) leased land to Walmart to construct a Super Center. The sales tax revenues from the Super Center were used to secure a 2006 Bond Issue to finance the design and construction of a 65,000 square foot health center for the RSIC.

Due to the magnitude of sales tax collected, RSIC prudently introduced a bill in the Nevada state legislature to share sales tax revenue with Nevada. In 2005, the bill passed unanimously.

The revenue sharing agreement has two components: the first is an annual payment to the local school district of approximately $500,000; the second was an agreement to finance the design and construction of the Northern Nevada Transitional Housing Center (NNTHC) for the State of Nevada. The design and construction of the NNTHC was financed with a 20-year, $8 million bank loan from U.S. Bank, enhanced with a 90% Indian loan guarantee from the Division of Capital Investment.

“The loan guarantee was a critical piece of the project,” said Steve Moran, RSIC Director of Economic Development. “Without the loan guarantee, the bank was unwilling to provide a 20-year loan. Without the loan extended to 20 years, the RSIC would not have been able afford the debt service payments.”

RSIC Chairman Arlan D. Melendez is optimistic about the continued progress of his tribe due to the successful collaboration with the state and the financial institutions. “All the new construction and revenue benefits, not only benefit our tribal members, but the entire region,” Chairman Melendez said. “We are able to provide expanded and much needed essential services to our community, plus contribute to the economic growth of the greater Reno-Sparks area."

The construction of the Reno-Sparks Tribal Health Center was completed in 2008. The Walmart Super Center opened in 2010. The Northern Nevada Transitional Housing Center opened in 2015. Last year, Fitch Rating Service upgraded the colony’s long-term Issuer Default Rating to BBB, and reaffirmed the rating in 2017.

Loan Guarantee
Business: Dynamic Homes
Lender: Bremer Bank
Borrower: Ho-Chunk Inc. 
Amount Financed: $4,146,000
Location: Detroit Lakes, MN
Tribal area: Winnebago Tribe of Nebraska

Dynamic Homes has been system-building successful communities across Indian Country for nearly 50 years. In 2000, Ho-Chunk Inc., the economic development corporation of the Winnebago Tribe of Nebraska, purchased Dynamic Homes with the support from the Indian Loan Guarantee and Insurance Program (ILGP).

The driving force behind the purchase of Dynamic Homes was to bring the vision of Ho-Chunk Village, a master-planned community in Winnebago, Nebraska to life. Ho-Chunk Village now boasts 31 homes, over 75 townhomes and apartments, and 10 elder housing units, as well as commercial, education and retail developments. It has made the dream of homeownership in Winnebago a reality for the first time for many tribal members. Dynamic Homes built nearly 100% of all the homes in Ho-Chunk Village.

Paul Okeson, president of Dynamic Homes, said, “We are happy to be part of the Ho-Chunk Inc. team and are grateful for the opportunities this partnership has provided. Having Lance Morgan, CEO of Ho-Chunk Inc., involved has been priceless in the Tribal Housing arena. In general, tribes want to partner with other tribes. It definitely sets us apart from other competitors.”

As a tribally-owned company, Dynamic Homes better understands the ongoing challenges tribes face to provide quality housing opportunities for tribal members. Dynamic has worked with over 15 tribes to create distinctive, yet affordable tribal housing solutions — all customized to meet specific needs, budgets and timelines. In the last decade, they have built more than 500 housing units in Indian Country. Dynamic Homes offers single-family homes, multi-family units and light commercial modular units.

• Biomass — Woody and Waste
• Hydro
• Solar
• Wind
• Geothermal
• Oil
• Natural gas
• Coal bed methane
• Uranium
• Coal
• Industrial minerals (sand and gravel)
• Precious minerals (gold, silver, and platinum)
• Base minerals (lead, copper, and zinc)
• Ferrous metal minerals (iron, tungsten, and chromium)

• Resource Assessment
• Exploration Studies
• Feasibility Studies
• Market Studies
• Engineering Studies
• Economic Evaluation
• Defining Potential Targets for Development

Interested in applying? Learn how.

Read success stories.

See recently funded projects.

In addition to our grants, many of our in-house technical capabilities and expert services are available for FREE to Tribes.

We’re committed to offering the technical support needed to assist Tribes in exploring and developing energy and mineral resources to meet their long-term goals to support their people.

Learn More at Technical and Business Advisory Services for Energy Projects

• Developing the legal infrastructure to create any type of Tribal energy business
• Establishing an energy-focused corporation under Tribal or state incorporation codes
• Establishing an energy-related Tribal business charter under federal law (IRA Section 17 corporation)

Learn more about choosing a Tribal business structure.

• Developing or enhancing tribal policies, codes, regulations, or ordinances related to energy resource, including land-lease regulations in accordance with the Helping Expedite and Advance Responsible Tribal Homeownership (HEARTH) Act for energy development purposes or for business purposes connected to an energy project
• Establishing a Tribal utility authority (TUA)
• Adopting secured transaction codes and a subsequent joint power agreement with a state government

Interested in applying? Learn how.

Read success stories.

See recently funded projects.

In addition to our grants, many of our in-house technical capabilities and expert services are available for FREE to Tribes.

We’re committed to offering the technical support needed to assist Tribes in exploring and developing energy and mineral resources to meet their long-term goals to support their people.

Learn More at Technical and Business Advisory Services for Energy Projects

For Lenders

Most lending institutions, including Community Development Financial Institutions, may obtain a guarantee or insurance, provided they regularly make and evaluate business loans. Credit unions are generally not eligible to become ILGP approved lenders. Non-bank lenders (such as insurance companies, leasing agencies, and private wealth funds) that otherwise meet ILGP’s standards are eligible to access guarantees, but not insurance since they are not financial institutions.

For Borrowers

To qualify for a loan through the program, you must be:

• An individual who is an enrolled member of a federally recognized American Indian/Alaska Native (AI/AN) tribe or group
• A federally recognized AI/AN group
• A corporation, limited liability company or other business entity with no less than 51 percent ownership by federally recognized AI/AN individuals

Borrowers must have at least 20% equity in the project being financed and the project must benefit the economy of a reservation or tribal service area.

Loans may be used for a variety of purposes including operating capital, equipment purchases, acquisition and refinancing, building construction, and lines of credit.