Do you want to expand or start a business in Rolette County and don’t have the capital required by a bank to accomplish your goal? A loan program offered by local banks utilizing funds from New Beginnings will help you reach your goal.
New Beginnings was created by the Turtle Mountain Band of Chippewa Tribe to manage funds received from the State Small Business Credit Initiative (SSBCI); a federal program administered by the US Treasury. The SSBCI was funded by The American Rescue Plan Act of 2021. A five-member board of directors committed to improving job opportunities within Rolette County currently manage and operate New Beginnings. The tribe was awarded approximately $6.3 million and received one-third or approximately $2.1 million in late 2023. The remaining funds will be distributed in two additional disbursements if 80 percent or more of the prior disbursement is funded. We have until November 2026 to fund our first tranche of funds.
This is a loan participation program in partnership with local banks for commercial and agricultural applicants who are unable to provide the capital to start or expand an existing business. While this is not a grant program, a preferential interest rate as low as one percent is provided on the portion funded by the New Beginnings program. The goal of the program is to improve job opportunities in the private sector within Rolette County, particularly for tribal members and descendants. The business does not have to be located on the reservation and does not have to be owned by a tribal member if it employs tribal members. Each bank will utilize its own loan underwriting guidelines and loan documents.
For example, an applicant would like to start or expand an existing business at a cost of $500,000 and has limited resources but good credit and experience/background. A bank’s internal guidelines may typically require 20-40 percent equity/cash from the applicant for these types of loans. The applicant would normally be turned down for insufficient capital or the bank would pursue a government guarantee which is time-consuming and may be more costly. Under a 40 percent equity requirement by a bank, the bank would finance only 60 percent or $300,000 in this example. This would require $200,000 from the applicant in the form of cash or other collateral to complete the investment which most people do not have. However, New Beginnings will participate in 30 percent ($150,000) of the funding needs in this example with a preferential interest rate for a total loan from the bank of 90 percent or $450,000. This results in the applicant contributing only 10 percent of the transaction. In addition, a borrower could save approximately $30,000 in interest based on a 7-year loan requiring monthly payments at a bank interest rate of 8 percent if it qualifies for an interest rate of 3 percent on our portion of the loan.
The bank will process all phases of the loan including the initial loan application. If interested, please contact a participating bank. please contact the following banks that have agreed to participate in the program:
Turtle Mountain State Bank at 701-477-5995
Dacotah Bank at 701-477-3175
Starion Bank at 701-401-5850
Rolette State Bank at 701-246-3395
First Community Credit Union at 701-665-1313
You may also contact any of the following New Beginnings board members for program questions:
Michelle Dauphinais Echols – Chairman
mdauphinais@tmnewbeginnings.com
Mark Monette – Vice Chairman
Shelly Davis – Secretary/Treasurer
sdavis@tmnewbeginnings.com
Jackie Frederick – Member
jfrederick@tmnewbeginnings.com
Stephanie Decoteau – Member
sdecoteau@tmnewbeginnings.com
