Minnesota Rules — Indian Affairs Council

Chapter 5100 BUSINESS LOANS TO INDIANS

Minn. R. 5100.0200 Definitions

Subpart 1. Scope.

As used in parts 5100.0200 to 5100.0900, the following words and terms shall have the meanings given, except where the context clearly indicates otherwise.

Subp. 2. Administrative costs.

"Administrative costs" means those costs incurred in administering the Indian Business Loan Program through the Indian Affairs Council.

Subp. 3.

[Repealed, 19 SR 974]

Subp. 4. Borrower.

"Borrower" means the person making application to the council for loan funds to start or expand a business.

Subp. 4a. Council.

"Council" means the Indian Affairs Council.

Subp. 5. Program.

"Program" means the Indian Business Loan Program.

History

• Statutory Authority: MS s 14.06; 116J.64; 116J.79
• History: 19 SR 974

Minn. R. 5100.0300 Scope of Program

The scope of the program is to provide an opportunity for eligible Indians in Minnesota to improve economic independence by implementing a business loan program that will promote an environment for economic expansion and diversification in the field of business ownership.

History

• Statutory Authority: MS s 14.06; 116J.64; 116J.79
• History: 19 SR 974

Minn. R. 5100.0400 Purpose

The purpose of parts 5100.0200 to 5100.0900 is to augment Minnesota Statutes, section 116J.64, by establishing criteria that will enable Indians in Minnesota to utilize the business loan program for the expansion or establishment of Indian-owned businesses in the state.

History

• Statutory Authority: MS s 14.06; 116J.64; 116J.79
• History: 19 SR 974

Minn. R. 5100.0500 Criteria for Business Loans

Criteria for the acceptance or rejection of business loan applications will be based on the following requested information in items A to F that will convey to the council a complete basis of information on which to evaluate the loan request, ability to repay, and management of the business, so that comparisons may be made with known industry standards as indicators of a company's ability to succeed.

A. Application must only be made for a profit oriented business geographically located in Minnesota.

B. The council must approve:

C. All documents in item B shall be submitted to the council at one time.

D. Loans for the purchase of land will require the construction of a physical facility and establishment of a business on that land within one year of receiving the loan approval. Construction of a physical facility is to begin within six months of receiving loan approval.

E. Business loans shall not be made to repay or consolidate existing liabilities.

F. Any loan made hereunder will become due and payable if the ownership of the business for which it was made is transferred in whole or in part to any individual, partnership, or corporation that would have been ineligible to have received the loan in the first instance.

History

• Statutory Authority: MS s 14.06; 116J.64; 116J.79
• History: 19 SR 974

Minn. R. 5100.0600 Procedures for Making Business Loan Applications

Complete standard application on forms prescribed by the council.

A time limitation of 60 days shall be imposed for the completion and submission of all documentation, which will allow applicant a reasonable time to obtain supplemental financing for the total project. The council shall extend the time limitation if based on good cause shown in writing.

History

• Statutory Authority: MS s 14.06; 116J.64; 116J.79
• History: 19 SR 974

Minn. R. 5100.0700 Repayment

The council shall establish repayment of the loan on a schedule that will be determined by an assessment of the cash flow and ability to repay.

History

• Statutory Authority: MS s 14.06; 116J.64; 116J.79
• History: 19 SR 974

Minn. R. 5100.0800 Review

There will be a monthly review of all loan accounts by the council.

History

• Statutory Authority: MS s 14.06; 116J.64; 116J.79
• History: 19 SR 974

Minn. R. 5100.0900 Maximum Participation

Maximum participation in any one loan shall not exceed 75 percent of the project cost.

History

• Statutory Authority: MS s 14.06; 116J.64; 116J.79
• History: 19 SR 974