WHAT IS THE COMANCHE NATION LOAN PARTICIPATION PROGRAM (LPP)?
The Comanche Nation Loan Participation Program (LPP) is a program designated under the U.S. Department of the Treasury’s Investing in America Small Business Opportunity Program (SBOP) – a U.S. Treasury competitive grant program funded by the State Small Business Credit Initiative (SSBCI).
The SSBCI program was reauthorized and expanded by President Biden’s American Rescue Plan and is a nearly $10 billion program to support small businesses and entrepreneurship in communities across the United States by providing capital and technical assistance to promote small business stability, growth, and success.
SSBCI provides funding to states, the District of Columbia, territories, and Tribal governments (collectively, participating jurisdictions) for programs that catalyze lending and investing in small businesses, build ecosystems of opportunity and entrepreneurship, and create high-quality jobs. SSBCI is designed to catalyze private capital in the form of loans to and investments in small businesses, especially in historically underserved communities and among entrepreneurs who may have otherwise lacked the support needed to pursue their business ambitions.
SSBCI includes two programs: the Capital Program and the Technical Assistance (TA) Grant Program. Under the Capital Program, participating jurisdictions implement credit and equity/venture capital programs to provide capital to small businesses. Under the TA Grant Program, Treasury supports programs that provide legal, accounting, or financial advisory services to qualifying small businesses.
The Comanche Nation Loan Participation Program is part of the capital program which provides credit support through the purchase of a portion of a loan made by a lender or through a direct loan alongside a private lender. Comanche Nation Enterprises, Inc. obtained $3.88 million in funding, issued in tranches with the first tranche consisting of $1.1 million.
Comanche Nation Enterprises, Inc. is a Section 17 federally chartered corporation with substantial experience with business development that has been established for 14 years. CNE anticipates that the Comanche Nation Loan Participation Program will be able to provide credit support for between 5 and 100 loans to tribal members who currently own a small business, or who want to start a small business.
Criteria and or eligibility requirements for the program include tribal member owned small businesses, if they are in the State of Oklahoma. CNE will also consider any small business that is located on or near the Tribe's reservation in Lawton, Oklahoma, or any small business in Oklahoma that can demonstrate it employs, or will employ, members of the Nation. CNE will also consider any Tribal owned enterprises regardless of location.
The LPP will apply to the following loan ranges:
- Minimum loan amount of $5,000
- Maximum loan amount of $20 million
- Average loan amount of $50,000
The standard loan terms (e.g., fixed term, lines of credit, etc.) and processes for reviewing non- standard transactions
- The LPP will participate in fixed term loans, business lines of credit, and other standard small business loan products offered. With respect to non-standard transactions CNE will review on a case-by-case basis with the bank to make a determination of participation.
- After the initial application is received, the lender will request additional information from the applicant according to their lending requirements. The process typically will take no more than two weeks but each case is unique and timelines will vary. Rates will be determined by the the lender in compliance with SSBCI criteria.
The Comanche Nation's SSBCI LPP is designed to provide much needed credit support for tribal member owned small businesses, located throughout Oklahoma. The growth experienced by tribal- owned businesses and tribal member businesses is an increase into the overall tribal economy. The LPPs intention is to create jobs for tribal members both on and off the reservation. With a particular focus on construction, business services, energy, and agriculture, the Nation expects additional benefits to the tribal community, surrounding communities, tribal government, tribal members, such as improved energy, road, buildings infrastructure, food security, community support, and workforce development.
