$5M Line of Credit to Help ILCC Support Economic Development, Land Recovery for Native Nations

As a for-profit, certified Community Development Finance Institution (CDFI), Indian Land Capital Company (ILCC) has made more than $20 million in loans to Native Nations without a single default or significant delinquency. Now a new $5 million line of credit from Associated Bank of Green Bay, Wisconsin, will help ILCC to further advance economic development and land recovery for Tribes — something ILCC will achieve by leveraging its unique approach to lending. 

Unlike traditional lending institutions, ILCC makes loans to Native nations on a full-faith-and-credit basis. As such, ILCC does not require land to be used as collateral for the loan but rather encumbers alternative streams of income, including business or land revenue. The line of credit enables ILCC to offer Tribes more access to capital which is a glaring need, according to ILCC CEO Rjay Brunkow, a member of the Turtle Mountain Band of Chippewa

“As a Native-owned and operated business, we understand the needs of Indian Tribes,” said Brunkow. “We understand and support Tribal sovereignty, and recognize the importance of land to Indian people. As a result, we are able to create customized, flexible loan packages that suit the needs of the Tribe and the specific circumstances of the purchase.”

ILCC was created in 2005 as a partnership between the non-profit Indian Land Tenure Foundation (ILTF) and the Native American Community Development Corporation (NACDC) to provide financing to Native Nations for land acquisition.

“Associated Bank recognizes the benefits Indian Land Capital Company brings to the Native American community throughout the country,” said Relationship Manager Aaron Kessler. “It is our pleasure to partner with the organization in a meaningful way.” 

Examples of projects ILCC has provided capital for include:

• A loan to the Menomonie Tribe in Wisconsin made it possible to improve the efficiency of its sawmill operation to improve air quality, generate electricity and efficiently heat the facility.
• A loan to the Little Traverse Bay Bands of Odawa Indians in Michigan enabled the Tribe to purchase a 311-acre farm adjacent to its reservation to develop a certified organic farm.
• Thanks to a loan from ILCC, the Scott’s Valley Band of Pomo Indians in Northern California has made a large investment in a bioenergy plant that uses burned timber from California wildfires to produce electricity and organic byproducts, which are then sold to generate valuable revenue

“Tribes like Scott’s Valley have difficulty accessing capital because they are perceived as lacking the resources to service the debt,” Brunkow said. “But if you really take a look at their financial situation you’ll find that they are easily able to service the debt, and are worthy of even more credit than what they have used to date. Thanks to our partnership with Associated Bank the Tribe was able to move forward on a great project.”