CFR > Title 25 - Indians > CHAPTER I—BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR > SUBCHAPTER G—FINANCIAL ACTIVITIES (parts 101 to 143) > PART 103—LOAN GUARANTY, INSURANCE, AND INTEREST SUBSIDY > SUBPART A—General Provisions (§103.1 to §103.8) > 103.4—What kinds of loans will BIA guarantee or insure?

103.4—What kinds of loans will BIA guarantee or insure?

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.