NSBCI Logo Black

Weave success into your business

NSBCI supports and uplifts Navajo business owners, artisans, and nonprofit leaders with the financial resources you need to nurture and grow your ideas.

What is the NSBCI?

The Navajo Small Business Credit Initiative (NSBCI) offers targeted access to loans and guarantees designed for Navajo small businesses, Navajo enterprises, and nonprofits. Whether you need working capital, equipment financing, or support to expand operations, NSBCI can help with loan amounts ranging from $5,000 up to $20 million.

NSBCI Programs

NBSCI-Symbol-LGP-Circled
LGP

Loan Guarantee

A loan guarantee is a promise by a third party to repay a borrower’s debt if the borrower defaults on a loan.
Example

Imagine you’re seeking a business loan, but the bank is cautious because you’re a first-time borrower or considered a higher risk. This is where a loan guarantee can make a difference.
A loan guarantee acts like a trusted endorsement. An NSBCI partner, such as Change Labs or Navajo DED, pledges to cover part of your loan if you cannot.

Benefits
  • Increased Approval Chances: With a guarantee, banks are more likely to approve your loan since their risk is minimized.
  • Better Loan Terms: You might qualify for a larger loan or more favorable interest rates.
  • Building Credibility: Demonstrates to lenders that you have solid backing, which is invaluable if you're new to borrowing.

Even with a guarantee, you’re still responsible for repaying the loan. The guarantee simply boosts the bank's confidence in lending to you, opening doors to the funding you need to grow your business.

NBSCI-Symbol-LPP-Circled
LPP

Loan Participation

Participation loans involve multiple lenders funding a single borrower, with one “lead bank” coordinating the effort and sharing risks and profits.
Example

Loan participation helps small businesses get loans by sharing risk among multiple lenders. Here's how it works and benefits you:

How It Works
  • Shared Risk: Change Labs or Navajo DED partners with a bank, sharing the risk and collectively funding your loan.
  • Risk Distribution: If financial challenges arise, the impact is spread among the lenders, reducing individual risk.
Benefits
  • Higher Approval Chances: With shared risk, lenders are more likely to approve your loan, even if your business is new or has imperfect credit.
  • Better Loan Terms: Reduced risk can mean lower interest rates or more favorable terms.
  • Larger Loan Amounts: Access more funds than a single lender might offer, ideal for significant financing needs.

The NSBCI Loan Participation Program aligns banks with your business goals by sharing responsibility, opening doors to the financing you need to grow and succeed.

NBSCI-Symbol-TA-Circled
TA

Technical Assistance

The Technical Assistance Program helps borrowers become ready to apply for a loan by offering business development, legal, and finacial assistance.
Example

Loan participation helps small businesses get loans by sharing risk among multiple lenders. Here's how it works and benefits you:

Program Highlights
  • Financial and Legal Literacy: Strengthens financial and legal understanding for qualifying businesses.
    Individualized Support: Tailored assistance to expand credit options for Very Small Businesses (VSBs) and Socially and Economically Disadvantaged Individuals (SEDI) owned businesses.
    Professional Connections: Links businesses with licensed accountants, legal experts, and development coaches.
    Financial Readiness: Focuses on bookkeeping, accounting, taxation, cash flow management, and loan application preparation.
Web-Based Support

The Dineh Chamber of Commerce TA portal offers comprehensive support to ensure loan readiness, including:

  • Higher Approval Chances: With shared risk, lenders are more likely to approve your loan, even if your business is new or has imperfect credit.
  • Better Loan Terms: Reduced risk can mean lower interest rates or more favorable terms.
  • Larger Loan Amounts: Access more funds than a single lender might offer, ideal for significant financing needs.

The NSBCI Loan Participation Program aligns banks with your business goals by sharing responsibility, opening doors to the financing you need to grow and succeed.

Partners

NSBCI-Partner-Logo-DED

Division of Economic Development

The DED is responsible for implementing NSBCI and providing support and resources for all NSBCI partners. DED provides oversight of all accounting and NSBCI reporting requirements to the U.S. Department of the Treasury.

Regional Business Development Offices (RBDOs)

The RBDOs will be responsible for building awareness of NSBCI for Navajo small business owners and directing Navajo applicants to Change Labs and the DED for loan applications, or Dineh Chamber of Commerce for technical assistance.
NSBCI-Partner-Logo-ChangeLabs

Change Labs

The CL team will administer loan guarantee and loan participation programming to Navajo small business owners and nonprofits. Providing training and resources that build the capacity of Navajo entrepreneurs so that they can leverage NSBCI programs.
NSBCI-Partner-Logo-DCOC

Dineh Chamber of Commerce

The DCC provides technical assistance (TA) to prospective borrowers by offering coaching, webinars, and a how-to video series on topics related to legal and financial compliance.

How to apply

  • The DED and Change Labs pre-application portals will open Summer of 2024

Are you eligible?

  • You are a majority Navajo-owned businesses, Navajo artisan, Navajo-controlled nonprofit, or a Navajo sole proprietors

  • You do not have delinquent debt to the Navajo Nation

  • You need funds for business purposes, such as working capital or refinancing existing debt.

  • Your business or nonprofit is located in New Mexico, Arizona, Utah, Colorado, or on the Navajo Nation.

NSBCI-1

Get your materials ready

Depending on your requested loan amount, you’ll be asked to prepare materials about your business.

View our loan checklist

NSBCI-2

Get your materials ready

It takes minutes online. Tell us who you are, what your business is, what you need funds for. Pre-applications open in Summer 2024.

NSBCI-3

Connect with your RBDO

Once your pre-application is submitted, an RBDO staff member will reach out to you to discuss your loan options and next steps.

NSBCI FAQ

The Navajo Small Business Credit Initiative (NSBCI) is a Navajo Nation program offering targeted access to loans and guarantees designed for Navajo entrepreneurs in Arizona, New Mexico, Utah, and Colorado. It will promote small business growth, increase job opportunities, and support the Navajo economy.

Businesses, sole proprietors, enterprises and nonprofits are eligible with special consideration for businesses located in rural or underserved areas. Whether you need working capital, equipment financing, or support to expand operations, NSBCI can help with loan amounts ranging from $5,000 up to $20 million.

The NSBCI is housed in the Navajo Division of Economic Development and supported by Change Labs and the Dineh Chamber of Commerce. Change Labs and Navajo DED will deploy $28 million in loans along with $28 million from private capital to grow Navajo small business owners.

Depending on the loan amount, loans are approved by Change Labs or our network of lenders including credit unions and CDFIs. A small business may apply for an NSBCI loan by contacting Change Labs, Navajo DED, your local RBDO, or a participating lender.

Small businesses and nonprofits with up to 500 employees may apply. The business or nonprofit must be located in New Mexico, Arizona, Colorado, or Utah. Eligible applicants include:

For-profit corporations, partnerships, or associations incorporated in a US State or on the Navajo Nation with a minimum of 51% ownership by an enrolled citizen of the Navajo Nation;

Navajo-controlled nonprofits; or

Sole proprietorships owned by an enrolled citizen of the Navajo Nation

A Navajo-controlled nonprofit means that 51% or more of the nonprofit’s Board of Directors are enrolled citizens of the Navajo Nation.

An eligible business or nonprofit may apply for an NSBCI loan by contacting Navajo DED, Change Labs, or a Participating Lender. Partners will be accepting pre-applications in Fall 2024.

The NSBCI is a three-year commitment to Navajo small businesses. pre-applications for loans will be open on a rolling basis for three-years after the pre-application opens in Summer 2024

Eligible applicants have a business or nonprofit on the Navajo Nation, Arizona, New Mexico, Utah, or Colorado.

Note that if your nonprofit, corporation, or LLC is located on the Navajo Nation, you must also be registered with the Navajo Business Regulatory and the Navajo Tax Commission in order to be approved for a loan.

It depends on whether or not your business or nonprofit is physically located on the Navajo Nation or if it conducts business on the Navajo Nation.

If you run a nonprofit or a small business physically located on the Navajo Nation or doing business on the Navajo Nation, you will be asked to provide proof of registration with the Navajo Business Regulatory Department and Navajo Tax Commission, or you will be provided with resources to register your organization with these entities.

If you are a Navajo sole-proprietor physically located on the Navajo Nation or doing business on the Navajo Nation, you will be asked to provide proof of tax payment to the Navajo Tax Commission, or you will be provided with resources to register with the Navajo Tax Commission.

Businesses and nonprofits who are not located on the Navajo Nation and do not do business on the Navajo Nation will be asked to provide proof of registration in the State of Arizona, New Mexico, Utah, or Colorado.

Sole proprietors who are not located on the Navajo Nation and do not do business on the Navajo Nation are n t required to produce any registration documentation.

Change Labs is offering loan amounts from $5,000 up to $1,000,000.

The Navajo DED offers loan amounts from $500,000 up to $20,000,000.

Interest rates are determined by the participating lender based on your loan size and terms.

Change Labs offers loans up to $50,000 at a 5% fixed interest rate.

Your loan payments will vary based on loan size and term. NSBCI loans are meant to be more affordable, with below-market or market interest rates, limited fees, and deferred payments options. You will repay your loan on a monthly basis through a participating lender.

Eligible Loans are limited to business purposes, such as working capital and eligible refinanced debt.

Working capital includes:

  • inventory, equipment, professional services, marketing, payroll, tenant improvements, operating and emergency maintenance;

  • current property taxes, utilities, rent, supplies;

  • making regularly scheduled interest and principal payments on mortgages, loans, and other existing business debt;

  • paying off existing debt that is due within 90 days; and

  • paying off credit cards that were used to pay monthly operating expenses and that the business historically was able to pay off each month.

We have created a checklist of documents and information you may need to apply for a loan.

Note that the items listed on the checklist are representative of commonly required materials; needs may vary depending on the size of the loan request and the lender.

Change Labs’ loans for $50,000 or less do not require a credit score or collateral.

For loan amounts greater than $50,000, your lender will likely check your personal credit score. Be prepared to answer questions about any negative items that may be listed.

Your local RBDO has an NSBCI technician in their office, Change Labs is offering coaching appointments, and the Dineh Chamber of Commerce is offering technical assistance.

Implementing Entity: A delegated administrative responsibility entity for the program. The Division of Economic Development will serve in this role for the purposes of the NSBCI program.

Administering Entity: Entities identified to support the implementation of the program as subrecipients, tasked with administering specific programs.

Loan Guarantee (LGP): A promise by a third party to assume the debt obligation of a borrower if the borrower defaults, or stops making payment on a loan (Change Labs and DED)

Loan Participation (LPP): Loans made by multi-ple lenders to a single borrower with one lender taking on the role or the “lead bank” who recruits other lenders to share in the risks and profits.

Technical Assistance (TA): Intended to guide Navajo small businesses and entrepreneurs to the most suitable NSBCI loan programs and partners. Provides business development, financial, and legal assistance.

Socially & Economically Disadvantaged Individuals (SEDI): Individuals who own and control businesses who face social and economic disadvantages.

Tranche: A portion of something, especially money.

NSBCI Calendar

NSBCI is a partnership between the Navajo Nation OPVP, the Division of Economic Development, Change Labs, and the Dineh Chamber of Commerce.

nsbci-partners