Lending & Capitalization
Building the economic capacity of Native communities.
Does Your Native Financial Institution Need Loan Capital?
Oweesta offers loans to provide financing capital for Native CDFIs and other tribal or nonprofit loan funds. Borrowers must be Native-controlled and have a primary mission of serving Native communities. We do not offer loans directly to individuals or businesses.
Loan applications are accepted year-round and can be completed through the Oweesta Portal. Please contact Florence Ludka at florence@oweesta.org to begin the application process or get more information. In order to complete your application, you will need the following:
- Business plan and/or strategic plan, if available
- Most recent three years audited financial statements including the auditor’s letter to management
- Organizations with less than $1 million in assets may submit internal financial statements
- Most recent interim financial statements
- Three years of financial and lending projections, if available
- Loan portfolio aging report(s) showing all delinquencies broken down by loan type and lending sector
- Lending policies and procedures (required)
- Financial management policies (required)
- Resumes or brief professional biographies of management and senior staff
- Resumes or brief professional biographies of board members
Loan pipeline estimates may be submitted in lieu of formal financial and lending projections. Organizations in operation for less than three years or who have yet to begin lending are encouraged to apply. To view our current loan products and term sheet, please visit here.
About Our Lending Products
Capital Loans
This is Oweesta’s “classic” loan product, used by most of our Native CDFI borrowers. Funds can be used to make any kind of loans in the borrower’s self-identified target market.
- Up to $500,000 loan size
- 3-4% interest rate
- Term 3 months to 2 years
- Usually unsecured
- Structured to match expected receivables. May include interest only period.
Agriculture Loans
This loan product provides lending capital for loans to support the production, processing, marketing, and/or distribution of agricultural products, including food, fiber, forest products, and horticultural crops.
- Maximum amount up to single borrower limit, conditional on funding availability
- Interest rate is cost of capital plus 1.5-2.5%
- Term up to 10 years
- Quarterly or monthly payments, with up to two years interest-payments
First In Loans
This loan product is almost identical to a Capital Loan, except that it is smaller, has a shorter term, and carries a slightly higher interest rate. These are our riskier loans, made to smaller, newer, or struggling Native CDFIs.
- Up to $100,000 loan size
- 2.5-3.5$ interest rate
- Term 2 to 3 years
- Usually unsecured
- Quarterly or monthly interest-only payments
- Eligible for renewal
Working Capital
The Working Capital loan is a temporary, short term loan of up to $500,000 to be used for lending and operations in keeping with your mission. This loan is great for anyone facing delays in grant disbursements or contractual payments.
- Up to $500,000 loan size
- Cost of capital plus 1.5-2.5% interest rate
- Term 3 months to 2 years
- Structured to match expected receivables. May include interest only period.
Line of Credit
This renewable Line of Credit will act as general lending capital. Though all types of lending are allowable, this acts greatly for loan funds and financial institutions with seasonal or unexpected capital needs.
- Up to $500,000 loan size when used with our Workin Capital loan
- Cost of capital plus 1.5-2.5% interest rate
- Term 1 year; renewable
- Quarterly or monthly interest-only payments. Principal due at maturity.
Map of Current Native CDFIs
27
Current Loans Out
$16,294,625
Current Loan Portfolio
$10,000,000
Capital Pool (Closed)
CONTACT US
First Nations Oweesta Corporation
2432 Main Street, 1st Floor
Longmont, CO 80501
303.774.8838
info@oweesta.org
Oweesta is an equal opportunity employer and provider.
ABOUT OWEESTA
Oweesta is the only existing Native CDFI intermediary offering financial products and development services exclusively to Native CDFIs and Native communities. Specifically, Oweesta provides training, technical assistance, investments, research, and policy advocacy to help Native communities develop an integrated range of asset-building products and services, including financial education and financial products.
Asset-building tools stimulate reservation economies by providing tribal members the opportunity to acquire financial management skills and build and accumulate assets through small business creation, homeownership, education, and much more.
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