Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.
Uses and Use Restrictions
Loan funds may be used to acquire land and interest therein for the benefit and use of the tribe or its members for purposes such as rounding out farming and ranching units or elimination of fractional heir ships.
Funds may also be used for incidental costs connected with land purchase such as appraisals, title clearance, legal services, land surveys, and loan closing.
Loan funds may be used to refinance non-United States Department of Agriculture preexisting debts that applicant incurred to purchase land subject to certain conditions.
Loan funds cannot be used for any improvement or development purposes, acquisition or repair of buildings or personal property, payment of operating costs, payment of finder's fees, or similar costs.
Limited to any Indian tribe recognized by the Secretary of the Interior or tribal corporation established pursuant to the Indian Reorganization Act or community in Alaska incorporated by the Secretary of Interior pursuant to the Indian Reorganization Act which does not have adequate uncommitted funds to acquire lands within the tribe's reservation or in a community in Alaska.
The tribe must be unable to obtain sufficient credit elsewhere at reasonable rates and terms and must be able to show reasonable prospects of repaying the loan as determined by an acceptable repayment plan and a satisfactory management plan for the land being acquired.
American Indian Tribe or tribal corporation recognized by the Secretary of the Interior, or a community in Alaska incorporated by the Secretary of the Interior.
Credentials provided by the Secretary of the Interior. Feasibility documentation must be supplied by the applicant. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
The Secretary of the Interior must determine that lands to be acquired lie within a tribal reservation or community in Alaska incorporated by the Secretary of the Interior pursuant to the Indian Reorganization Act.
The standard application forms as furnished by the Federal agency and required by OMB Circular No.
A-102 must be used for this program.
An environmental assessment is required for this program.
This program is excluded from coverage under E.O.
Application Form FSA 770-2620 will be submitted to the State FSA offices. This program is subject to the provisions of OMB Circular No. A-110.
After an application has been recommended by Agency loan specialist, the State Executive Director has final approval authority on loans up to $500,000. Loans in excess of that amount require the National office approval. Following approval, payment authorization is forwarded to the National finance office which issues the check.
Loans to Indian Tribes and Tribal Corporations Act, Section 488-492, Public Law 91-229.
Range of Approval/Disapproval Time
From 30 to 90 days.
If an application is rejected, the reasons for rejection are fully stated and appropriate appeal rights given. The applicant may reapply at any time that the reasons for rejection are corrected. If not satisfied with the State Executive Director's action, the applicant is given an opportunity to appeal the decision to the National Appeals Division decision making process. The applicant may in the final step of the appeals process, ask for a review of the decision by the Director of the National Appeals Division, Washington, DC.
Formula and Matching Requirements
Program size and requirement does not permit equitable distribution on a Tribe or State basis. The loan assistance may equal the project cost if the applicant is financially unable to contribute a part of the cost. This program has no statutory formula or matching requirements.
Length and Time Phasing of Assistance
Loans may be scheduled over a period not to exceed 40 years.
Post Assistance Requirements
In accordance with the provisions of 7 CFR Part 3052, which implement OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 7 CFR 3052.
Records and accounts are required to reflect the operations of the project.
(Loans) FY 07 $3,960,000; FY 08 est not available; and FY 09 est not reported.
Range and Average of Financial Assistance
$450,000 to $2,000,000. Average: $224,000.
Regulations, Guidelines, and Literature
7 CFR Part 770, and FSA Handbook 6-FLP, Part 2., FMHA Instruction 442.11, FMHA Credit for American Indians, PA-1129.
Regional or Local Office
Contact the appropriate FSA State office listed in Appendix IV of the Catalog.
Department of Agriculture, Farm Service Agency, Director, Loan Servicing and Property Management Division, Ag Box 0523, Washington, DC 20250. Telephone: (202) 720-4572.
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