New Beginnings was created to manage funds received from the State Small Business Credit Initiative (SSBCI); a federal program administered by the US Treasury.  The SSBCI was funded by The American Rescue Plan Act of 2021.

 

This is a loan participation program (not a grant program) with your local bank for commercial and agricultural applicants who are unable to provide the capital to start or expand an existing business.  While we have the authority to participate in loans throughout the State, the purpose of the program is to improve job opportunities within Rolette County, particularly for tribal members and descendants.  The business does not have to be located on the reservation and does not have to be owned by a tribal member as long as it employs tribal members.  Each bank will utilize its own loan underwriting guidelines and loan documents.  We will purchase a participation interest in the loan and provide a preferential interest rate on our portion.  

 

For example: Someone would like to start or expand an existing business at a cost of $500,000 with limited resources, but good credit and experience/background.  A bank typically requires 30-40 percent equity/cash from the borrower. We will assist in the equity/cash requirement.  Let’s assume a $450,000 (90% of request) loan is granted.  We will purchase $180,000 (40%) of the loan.  There will be one Promissory Note with a blended interest rate base on the bank’s rate and our preferential rate based on the number of tribal members to be employed after the loan is granted.   

 

Please contact your local bank for loan and program eligibility requirements.  The TM Entrepreneurial Development Center located at the Anishinaabe Center on Belcourt Lake can assist you with starting a business.  Please contact Betty Hamley at 701-477-3101.