§103.4. What kinds of loans will BIA guarantee or insure?
25 C.F.R. § 103.4
In general, BIA may guarantee or insure any loan made by an eligible lender to an eligible borrower to conduct a lawful business organized for profit. There are several important exceptions:
The business must contribute to the economy of an Indian reservation or tribal service area recognized by BIA;
The borrower may not use the loan for relending purposes;
If any portion of the loan is used to refinance an existing loan, the borrower must be current on the existing loan; and
BIA may not guarantee or insure a loan if it believes the lender would be willing to extend the requested financing without a BIA guaranty or insurance coverage.
Notes, amendments, and revision history
Authority
Authority: 25 U.S.C. 1498, 1511.
Source
Source: 66 FR 3867, Jan. 17, 2001, unless otherwise noted.