PLFC endeavors to lend money to Community Members for agricultural business purposes.
PLFC has a successful agricultural lending record. Since 2012, we have provided agricultural loans to Community members and have acquired several repeat loan clients. We hold a strong commitment to fostering and maintaining close working relationships with our clients. Because of this commitment, we have not had to exercise our rights of recovery through the court process for any of these loans.
AN OVERVIEW OF THE LENDING PROCESS
STEP 1: INITIATE THE PROCESS
To begin the loan process, the following initial information is needed:
- A fully executed lease from BIA Realty/PLFC
- A plan that identifies:
- the crop to be grown
- a buyer for the crop (note: important for anticipated income)
- water apportionment for the year
- Crop schedule (coordinated through GRIIDD for development land)
Note: Collection of this initial information is needed before proceeding to Step 2, which is setting up an appointment with the Business Analyst.
STEP 2: SCHEDULE APPOINTMENT WITH A BUSINESS ANALYST
Once the initial information is collected, contact the PLFC office to schedule an appointment to meet with the Business Analyst.
Prior to the appointment, be prepared to collect the following required documents:
- Three (3) years of filed tax documents
- Copy of the land lease(s)
- Map of leased land(s)
- Contract for the crop (or your target buyer)
- Crop schedule
- Water availability memo
During the appointment with the Business Analyst, the client will be asked to sign a credit check authorization form. This process includes a background check.
ROLE & DUTIES OF THE BUSINESS ANALYST
- Calculates anticipated income versus loan request
- Creates a budget for the loan based on client’s needs
- Presents the loan request to the PLFC loan committee
- Works closely with the client throughout the life of the loan
- May also serve as:
- a liaison between the client and various tribal departments
- a liaison with BIA (with the client’s written permission)
TYPICAL TYPES OF COLLATERAL
- The Farm Business
- Farm Equipment
- Crop Produced
As the client, you are required to keep all of these collateral items in good working order.
STEP 3: LOAN DECISION PROCESS
- Business Analyst presents the loan request to the PLFC loan committee.
- Committee makes a decision based on the presentation.
STEP 4: LOAN APPROVAL
- Upon loan approval – loan documents will be drawn up.
STEP 5: REVIEW LOAN DOCUMENTS
- The client will have the opportunity to review the loan documents at their leisure, along with their attorney or other trusted individual.
STEP 6: SIGN FINALIZED LOAN DOCUMENTS
- The loan is finalized once the client has signed the documents.
STEP 7: DRAWDOWNS
- Drawdowns are requested through the Business Analyst. Please note draw down requests are based on the initial budget used for the loan presentation.
- Drawdowns will occur after the documents have been finalized.
STEP 8: LOAN REPAYMENT
- Typically loan repayment will be made at each harvest.
- The entire loan balance is anticipated to be paid by the end of a calendar year.
- Loan repayment includes the borrowed amount plus interest.