The Gila River Entrepreneurship Program currently offers business financing to enrolled Community Member Owned Business Owners through the Micro Business Loan Program. Plans to offer additional funding through a Small Business Program is in development for October 1, 2005. Long range plans include the creation of a Community Development Financial Institution.
MICRO BUSINESS LOAN PROGRAM
The Gila River Micro Business Loan Program (GRMBLP), approved by Council on June 21, 2000, facilitates business financing to Community Entrepreneurs that are qualified to start or expand a business. As of September 30, 2004, the Program has awarded 44 micro business loans to Community Members totaling $831,661. The current Portfolio has a value of $488,550. The average amount of a loan is $19,706 with the largest loan made at $25,000 and the smallest at $1,000. The businesses funded serve the Gila River Indian Community with services such as manufacturing, auto mechanics, artists and food sales. The loans have an interest rate of 1%, fixed on the day of closing, and have an average term of four years.
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION
The Gila River Entrepreneurship Program will serve as the qualifying program under which the Gila River Indian Community can become certified as a
Community Development Financial Institution (CDFI). The Community Development Banking and Financial Institutions Act, passed into law in 1994,
created the Community Development Financial Institutions Fund to promote economic revitalization and community development in distressed urban, rural and Native American communities across the nation. There are approximately 800-1000 CDFIs in the United States. A growing number of these are Native based CDFIs (now 25). The CDFI Fund provides infusions of capital to serve distressed communities and low income individuals. The Fund's activities leverage private investments from banks, foundations, and other funding sources.
|
Home 
