The Native CDFI Relending Demonstration program provides mortgage capital to NCDFIs through a 33-year loan at 1% interest rate with a 3-year payment deferral at loan onset. This capital can be used on tribal lands, Alaska Native Claims, and Hawaiian Homelands.
The funds must be used to provide direct loans to recipients. The minimum loan request is $500,000, and must be provided to individual loan recipients within 3 years of loan closing. Repayment will be annually and consist of both principal and interest, after the initial 3-year deferral.
“Having that additional capital as a line item on our capital stack definitely shows that we do have the capacity to do the work in the community and attracts or can attract more investors”
Why Should I Consider This Program?
- Wisconsin Native Loan Fund (WINLF) secured a $1 million loan at 1% interest for 33 years, a rare funding opportunity that allowed them to finance homeownership conversions for 24 Low-Income Housing Tax Credit (LIHTC) units in Red Cliff. They followed that with an additional $875,000 to scale the model statewide.
- Created a sustainable revenue stream by converting lending capital into long-term interest income, improving organizational self-sufficiency
- Supported tribal homeownership programs that transfer wealth and autonomy to Native families
- USDA programs can unlock new levels of sustainability, equity, and long-term impact.
- This program allows loan closing to be streamlined and happen faster.
- Having the capital as a line item shows organizational capacity and helps attract other capital.
Tips for Success with Native Relending
1. Build strong partnerships
Strong tribal partnerships and community alignment are key.
2. Be prepared when applications open.
This program isn’t open year-round, be prepared and have your application started so that you are ready to go when the funding opens.
3. Vision and readiness matter.
Have a vision and a plan before you apply, and be ready to implement that plan.
4. Have packaging experience
Become a USDA 502 loan packager first and be familiar with that program.
5. Ask for what you need
Be willing to ask for the full amount needed, don’t underestimate the request.