§ 103.4. What kinds of loans will BIA guarantee or insure?
114 words·~1 min read·
/us/cfr/t25/s§ 103.4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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:
(a)The business must contribute to the economy of an Indian reservation or tribal service area recognized by BIA;
(b)The borrower may not use the loan for relending purposes;
(c)If any portion of the loan is used to refinance an existing loan, the borrower must be current on the existing loan; and
(d)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.