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Zura Honac Business Loan

Program Overview

©2004, Ho-Chunk Nation

Summary: The Zura Honac Business Loan is a small business loan program open to all enrolled Ho-Chunk Tribal members receiving per capita. A business plan is required and must be submitted with all applicable program release forms. The Use of Loan Proceeds list is required and must be included in the business plan. All required forms must be submitted by the Quarterly Funding Cycle deadline date and no later then 4:30 p.m.

Your per capita is the primary collateral on loans funded. Conditional Security and Interest form is secondary collateral. You must have sufficient available per capita and not be in default status on any loan with the Ho-Chunk Nation therein. There also must be sufficient per capita available to cover the loan payment and insurance premiums in event of a default.

Processing: All applicants will be pre-screened, then processed with the 3-step verification process that may deny any of the applications.

The final step of processing after approved verifications, applicant's business plans are reviewed by a five member Loan Review Board to determine funding. The review consists of assigning scores to the submitted business plans along with comments. The business plans must receive a minimum of 60 points to be considered for funding. Those business plans receiving less than 60 points will be denied. All others are ranked from highest to lowest scores, highest points are funded first. All applicants who submitted a business plan will receive a copy of the Reviewers comments and scores.

Applicants: You are required to obtain Term Life or Credit Insurance equal to or greater than the loan amount on Zura Honac Business Loans. You are required to place the Ho-Chunk Nation as the Payer, Primary Beneficiary/Lien holder of the policy. If anything should happen to you the borrower, the life insurance will "pay off" the loan and the balance will go to your secondary beneficiary. The insurance is required for the term of the loan.

Security Interest: The Ho-Chunk Nation (lender) requires first Lien holder position on all business assets purchased with loan funds, and must be named "additional insured" on insurance of physical assets of the business.

TERO: All applicants must apply for TERO (Tribal Employment Rights Office) Certification prior to the Final Draw of the business loan within one year. Failure to apply for TERO will uphold final disbursement.

Refinancing: The SBDF (Small Business Development Fund) loans can be refinanced. You may apply by submitting a business plan and with all applicable program release forms in a quarterly funding cycle, if approved, the Zura Honac Business Loan will pay it off and you will receive the balance in 1/3 increments according to the disbursement guidelines, and all loan funds are to be spent according to the Use of Loan Proceeds list that was submitted along with your business plan.

Funded Zura Honac Business Loans may be refinanced; you must have at least repaid 25% of the original loan. Then, you can reapply through the normal application process. And, your account must be in "good standing", all repayment factors will be considered.

What is the Zura Honac Business Loan Program?
A Tribally funded RLF (Revolving Loan Fund) to assist enrolled Ho-Chunk Tribal members to start or expand a small business, by providing financial assistance in the form of a low interest business loan.

How much can I borrow and what is the interest rate on all Zura Honac Business Loans?
They range from $10,000 to $25,000, for up to 10 years with a 4% APR.

How do I get a Loan?
A Business Plan is required and you can request a copy of the Zura Honac Business Loan Guidelines from the Small Business Program. The program guidelines explain the business loan program in detail. And, workbooks are available to assist with business plans.

Who determines if I get a loan?
First you must prepare and submit a business plan. Second there is a 3-step verification process. Thirdly, business plans are scored by the Loan Review Board. And Finally, you must score 60 points out a possible 100 points to be considered for funding. Business plans with the highest score are funded first and funding continues until the $75,000 per funding cycle are committed.

When are the funding cycles?
Funding cycles close at 4:30 p.m. on: (each year)

March 21st
June 21st
September 21st
December 21st

What if I don't have good credit, am I still able to get a loan?
Yes, your credit is not a factor, however a legal background check is performed.

What if I don't have any collateral?
Your per capita is the primary collateral on the loan. You need to have sufficient per capita available to cover the monthly/quarterly loan payment and not be in default on a loan with the Ho-Chunk Nation. Secondary collateral consists of Conditional Security Agreements.

Can I get a loan if I have a SBDF loan?
Yes, if you have a SBDF (Small Business Development Fund) loan now, you can apply for a Zura Honac Business Loan for up to $25,000 in a Quarterly Funding Cycle deadline. If your business plan scores a minimum 60 points and is ranked upon the highest scores, it will be funded, the existing SBDF loan will be paid off and you receive the balance in disbursements.

Do I receive the loan in one installment?
No, the Zura Honac Business Loan are disbursed in 1/3 increments of the loan amount, then you have to submit copies of receipts totaling an 80% minimum match of your first disbursement check. All the receipts must match Use of Loan Proceeds list. If they match, you will receive the second 1/3 increment. After you submit matching receipts for 90% minimum of the total disbursed, you will receive the final 1/3. The final disbursement must be within 12 months of the first check and all matching receipts must be approved expenditures for 100% of the loans or your loan will be reduced to the amount you have received thus far. Your monthly payment will not go down, the length of the loan will be reduced. Requests of more than 1/3 disbursed are allowed for major purchases (See program guidelines). The Ho-Chunk Nation reserves the right to lien holder status on all purchases made with Zura Honac Business Loan funds.

Request a copy of the
Zura Honac Business Loan
Program Guidelines
for a complete explanation on the
business loan program!

For more information
--- CONTACT ---
Ho-Chunk Nation
Small Business Wogi jere
Services Program

(715) 284-9343 ext. 1140
(800) 294-9343 ext. 1140

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All Nations Business Loan

Program Overview

IRP
Intermediary Re-Lending Program

©2004, Ho-Chunk Nation

Summary: The All Nations Business Loan is a small business loan program available to enrolled Ho-Chunk Tribal members and non-Tribal members with start-up or existing business in the following Six counties: Jackson, Juneau, Monroe, Sauk, Shawano and Wood. Loans range from $5,000 to $35,000 with a 5% APR for up to 15 years.

Eligibility: Applicants must be an enrolled member of a Tribe, or U.S. Citizen for more than 1 year, and 18 years of age. All business loan requests must show proof of 25% cash match of loan request, at the time of loan closing.

Processing: All applicants will be pre-screened, then processed with the 3-step verification that can deny any of the applicants. After the verification process, the applicant's business plans are to be reviewed by a five member Loan Review Board to determine funding. USDA will have final approval on all loans. All applicant's are required to complete Form RD 1940-20 Environmental Assessment to be submitted to USDA and may be required to complete a Phase I Site Assessment. All applicants who submitted will receive a copy of the Reviewers comments and scores.

All Applicants: In order to release approved funds. 1) Applicant required to obtain Term Life or Credit Insurance equal to or greater then the loan with Ho-Chunk Nation the Payer/Primary Beneficiary and Lien holder. 2) Applicant must match loan request total with a 25% cash match or acceptable financing. 3) Applicant's must be able to collateralize all loans at the time of loan closing. 4)Applicant must show proof at loan closing that you are unable to secure this amount from another lending Institution at same terms and rates.

Ho-Chunk Applicants: Your per capita is the primary collateral on loans funded. Additional security and interest forms are secondary collateral requirements. You must have sufficient per capita available and not be in default status on any loan with the Ho-Chunk Nation therein. There also must be sufficient per capita available to cover the loan payment and insurance premiums in event of a default.

Security Interest: The Ho-Chunk Nation (lender) requires first Lien holder position on all business assets purchased with loan funds, and must be named "additional insured" on insurance of physical assets of the business.

Projects Not Acceptable for Funding: All Nations Business Loan will not be made to the following: community antenna television services or facilities, lending and investment institutions, insurance companies, golf courses, race tracks, gambling facilities, agricultural production, charitable institutions, the transfer of ownership of a business unless the business loan will keep the business from closing or prevent the loss of jobs in the area or provide expanded job opportunities, any illegal activity, any project that is in violation of federal, state or local environmental protection laws for regulation or an enforceable land use restriction unless the business loan will result in curing or removing violation, government employees, military personnel (on active duty), the investment only in a business, any applicant that has a pending application with another IRP if the total loans will exceed the maximum allowable loan amount USDA 4274.331(b)(1), any amount in excess of the amount needed to accomplish the purpose of the applicant's project.

What is the All Nation Business Loan?
The All Nation Business Loan is dedicated to the diversification of Tribal and other community economic development and expansion of small businesses in the Target Service Area. The intent of the program is to re-lend monies to low-income employers or those employing low-income persons in small businesses, and by saving or creating jobs in rural areas.

How much can be borrowed and what is the interest rate?
Loans range from $5,000 to $35,000 for up to 15 years with a 5% APR.

When are the funding cycles deadlines?
Funding cycles close at 4:30 p.m. on: (each year)

March 21st
June 21st
September 21st
December 21st

Is there assistance available?
Yes, user friendly business plan workbooks (fill in the blanks) type and one-on-one appointments with the Small Business Program staff are available to each interested applicant.

Is the 25% Loan Request match required?
Yes, the 25% match must be in the form of cash or an additional loan at the time of loan closing.

What can be used as the 25% match?
For Ho-Chunk Tribal members you may apply for a Zura Honac loan ($10,000 - $25,000), if funded it can be used as the match. Or you may have to secure another loan to fulfill this agreement at loan closing, if the Zura Honac loan is not approved.

Can one business plan be used for Zura Honac Business Loan and All Nations Business Loan?
Yes, one business plan can be submitted, using the All Nations Business Loan workbook to combine both loan fund applications and meet requirements.

What forms of collateral are acceptable from non-Tribal members?
Land or Equipment, the Small Business Program will file UCC status on these items, with the State of Wisconsin.

Does the Small Business Program place lien on all loan fund purchases?
Yes, the Ho-Chunk Nation Small Business Program reserves the right to lien holder status on all purchases made with All Nations Business Loan funds.

Can the All Nations Business Loan be refinanced?
Yes, if 25% of the loan has been repaid and your account is in "good standing".

How will money be disbursed?
The loan will be disbursed in 1/3 increments of the loan funded amount. Refer to the program guidelines.

Request a copy of the
All Nations Business Loan
Program Guidelines
for a complete explanation on the
Business Loan Program!

For more information
--- CONTACT ---
Ho-Chunk Nation
Small Business Wogi jere
Services Program

(715) 284-9343 ext. 1140
(800) 294-9343 ext. 1140