What is the Indian Loan Guarantee and Insurance Program (ILGP)?

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.