2018 CDFI Grant Awardee

September 20, 2018

Salamanca, NY- The Seneca Nation of Indians Economic Development Company (SNIEDC) is pleased to announce a Financial Assistance (FA) award notice of $200,000 for the 2018 funding round of Native American Community Development Financial Institution Assistance (NACA) Program from the US Department of Treasury’s CDFI Fund. The NACA Program provides FA awards to support the financing activities of certified Native Community Development Financial Institutions (CDFIs).

The NACA Program issued $15.1 million to 38 Native CDFIs across the country in 2018 funding round to support the Native community’s economic development activities. SNIEDC is the only Native American CDFI in NYS and honored to be one (1) out of twenty-nine (29) Native CDFI’s to be awarded in the NACA program. This program is funded through an annual appropriation from the United States Congress, and the awards are made each year through a competitive process that spans several months.

Lucille Brooks, Executive Director commented, “This new funding will assist SNIEDC in meeting the needs and demands of Seneca Entrepreneurs by increasing the volume of our financial products through commercial mortgages. SNIEDC begin offering Commercial Mortgages, which no traditional financial lender can do on territory due to tribal sovereignty. Because SNIEDC is chartered by the Seneca Nation, we are uniquely positioned to offer this product. SNIEDC’s Commercial Mortgage program will, for the first time, create a mechanism for using property on the territory as loan collateral. The availability of affordable and modern commercial space will stimulate new business growth and increase employment on the territory.”

SNIEDC is offering a Commercial Mortgage loan for business property acquisition of land and buildings, construction or renovations.

COMMERCIAL MORTGAGE LOAN
Minimum Maximum
Loan Limits $75,000 $375,000
Interest Rate 6.25% 10.25%
20-year maximum term

This extended loan term will allow Seneca business owners the flexibility to reduce their monthly debt payments over a longer period and provide a higher maximum loan. This loan product will enable more effective Commercial Development within the Seneca Nation Territories.

Another benefit of the Commercial Mortgage program is that a Seneca can now leverage their most valuable asset, their home, as collateral to obtain a SNIEDC business loan. This will allow Senecas to more effectively leverage their personal assets to increase their wealth.

Visit our website at www.sniedc.org or call our office at (716) 945-7148 to get our loan application or for further information.

 

Catch Your Dream, Business Survey

 

Catch Your Dream

With a Seneca Business Loan

Fill out our business survey by July 8th and you will be entered in a drawing for a chance to win a $50 .

Drawing will be July 11th for 8 chances to win!!!

Please visit the link below:

://www.surveymonkey.com/r/SNIEDC_Small-Biz_Survey

Hard copies of the business survey will also be available at the receptionist area in both Seneca Nation Administration Buildings.

2017 CDFI FUND GRANT AWARDEE

SNIEDC is pleased and honored to announce a Technical Assistance (TA) grant award of $150,000 for the 2017 funding round of the Native American Community Development Financial Institution Assistance (NACA) Program from the U.S. Department of Treasury’s CDFI Fund.   SNIEDC’s TA award will be used to provide operational support for capacity building to increase access to credit, capital, and financial services to Seneca entrepreneurs.

The NACA Program was awarded $15.6 million to 38 Native Community Development Financial Institutions (CDFI) across the country in this funding round.   This program is funded through an annual appropriation from the United States Congress, and the awards are made each year through a competitive process that spans several months.

Lucille Brooks, Executive Director commented, “This new funding will assist SNIEDC in ensuring the needs and demands of Seneca Entrepreneurs are being met through our loan products.  SNIEDC will be building internal capacity to include our newest product, commercial mortgages. “

SNIEDC began offering Commercial Mortgages, which no traditional financial lender can do on territory due to tribal sovereignty.  Because SNIEDC is chartered by the Seneca Nation, we are uniquely positioned to offer this product. SNIEDC’s Commercial Mortgage program will create a mechanism for using property on territory as loan collateral. The availability of affordable and modern commercial space will stimulate new business growth and increase employment on territory.

Another benefit of the Commercial Mortgage program is that a Seneca can leverage their most valuable asset, their home, as collateral to obtain a SNIEDC business loan. This will allow Senecas to more effectively leverage their personal assets to increase their wealth.

ESTABLISHED:

SNIEDC is a 501(c) (3) non-profit organization chartered in 1993 by the Seneca Nation of Indians Tribal Council. SNIEDC became certified as a Native Community Development Financial Institution (CDFI) to provide loan products and services to the Seneca membership in 2013. A CDFI is a specialized financial institution that works in market niches that are underserved by traditional financial institutions.

SNIEDC Interest Rates Based on Prime Rate

 Interest Rates could continue to rise – now is the time to lock in a lower rate

Financial accounting stock market graphs analysisThe Current Fed Prime Rate is: 5.25% (the last rate change — an increase of 25 basis points or 0.25 percentage point, occurred on June 13, 2018)

The US Prime Rate is a commonly used, short-term interest rate in the banking system of the United States.  All types of American lending institutions (traditional banks, credit unions, loan funds, etc.) use the U.S. Prime Rate as an index or foundation rate for pricing various loan products.  The US Prime Rate is consistent between financial institutions because banks want to offer businesses and consumers loan products that are both profitable and competitive.  A consistent US Prime Rate also makes it easier and more efficient for individuals and businesses to compare similar loan products offered by competing banks.

SNIEDC basis its business loan interest rates on the Wall Street Journal (WSJ) Prime Rate, which surveys large banks and publishes the consensus US Prime Rate.  The WSJ surveys the largest banks in the US, and when three-quarters of those banks change, the WSJ updates its rate, effective on the day it publishes the new rate.  Each day, the WSJ publishes the most widely quoted measure of the US Prime Rate.

Providers of consumer and commercial loan products often use the US Prime Rate as their base lending rate, and then add a margin (profit) based primarily on the amount of risk associated with a loan.  SNIEDC follows this same model by utilizing a risk-based calculation to determine an applicant’s interest rate.  For example, on Business Loans, SNIEDC uses an applicant’s Credit Score, Debt-to-Income ratio, and Loan-to-Value ratio to calculate the interest rate as a spread above the WSJ prime rate.

prime rate graphWhile the prime rate held at a low of 3.25% from December 2008 through December 2015, this rate was at 9.5% as recently as the early 2000s. In December 1980, it reached a record high of 21.50%. The rate can remain the same for years, but it can also change as often as every six weeks, because that’s how often the Federal Reserve’s Federal Open Market Committee (FOMC) meets and decides how it wants to influence the fed funds rate on which the WSJ prime rate is based.

The Prime Rate is projected to rise again in 2017.  According to the WSJ, when the FOMC met in December 2016 the “Federal Reserve showed increasing optimism about the U.S. economy and signaled interest rates would rise at a faster pace than previously projected, as it unanimously approved its second rate increase in a decade…The brightening economic outlook also prompted a shift in rate forecasts, with Fed officials now expecting to raise rates next year by another 0.75 percentage point, likely in three quarter-point moves.”  When you are approved for a loan with SNIEDC, the interest rate will be calculated based on the WSJ Prime Rate at that time and will be fixed for the term of the loan.  Apply for a business loan soon to help protect you from rising interest rates.

Sources:  www.bankrate.com; www.fedprimerate.com; www.investopedia.com; www.wsj.com

SNIEDC Commercial Mortgage Loans

Commercial Development on Seneca Territory

The Seneca Nation of Indians Economic Development Company (SNIEDC) has the ability to use real property on the Seneca Nation Territories as collateral. SNIEDC gained approval for Commercial Mortgage Guidelines which provide a leasing structure on real property within the Seneca Nation Territories.  SNIEDC borrowers can purchase property on territory for a business or leverage their current property for financing.

Due to tribal sovereignty rights, land issues create an obstacle for financing on the territory.  More specifically, the sovereign status of the Seneca Nation Territories prevents financial lenders from being able to place a lien on or repossessing Seneca Property. However, the leases within the City of Salamanca and the congressional villages on the Allegany Territory offer this ability. SNIEDC will use a lease mechanism approved by the Guidelines to allow Senecas to obtain business financing on property everywhere on the Territories. Throughout the term of the loan and in the event of a default the property will always remain within the possession of a Seneca individual or the Seneca Nation.

SNIEDC offers Commercial Mortgages with up to 20-year terms that can be used for business property acquisition of land and buildings, construction or renovations. This extended loan term will allow Seneca business owners the flexibility to reduce their monthly debt payments over a longer period. This enables more effective Commercial Development within the Seneca Nation Territories.

COMMERCIAL MORTGAGE LOAN
Minimum Maximum
Loan Limits $75,000 $375,000
Interest Rate (updated 9/27/2018)
6.25% 10.25%
20 year maximum term

Another benefit of the Commercial Mortgage Guidelines is that a Seneca can leverage their most valuable asset, their home, as collateral to obtain a SNIEDC loan. This will allow Senecas to more effectively leverage their personal assets to increase their wealth.  Below are SNIEDC’s two other loan products for which Senecas can now use real property as collateral.

 BUSINESS REVOLVING LOAN
Minimum Maximum
Loan Limits $25,000 $250,000
Interest Rate (updated 9/27/18) 6.25% 10.25%
7 year maximum term
 MICRO LOAN
Minimum Maximum
Loan Limits $500 $25,000
Interest Rate  (updated  9/27/18) 6.25% 10.25%
5 year maximum term

Visit our application page, call us at (716) 945-7148, or stop by our office to get our loan applications or for more information.

Shop Local, Shop Seneca

shopsenecalogosmall

How many of the products or services that you buy are purchased either on Seneca Territory or at Seneca businesses?

Each dollar spent at a local business is 3-4 times more likely to stay in the local community. This is called the multiplier effect or economic impact. Local businesses retain and recirculate money in the local community, generating greater local wealth and increase demand for local jobs. Every dollar spent off territory has a very small chance of being recirculated back to Seneca businesses and Seneca families.

The Seneca Nation of Indians Economic Development Company (SNIEDC) has created a Seneca Business Directory and Seneca Business Map to help shoppers find Seneca-owned businesses. Now, you can search our directory and find the local Seneca-owned business that can provide the service or product that you are looking for.

Visit our Seneca Business Directory  or click the “Shop Seneca” link on the menu at the top of our website.

If you are Seneca and own a business on-territory or off-territory and you would like your business listed in our directory, go to our Directory and click “Submit A Listing” to add your business to our Directory.  If your business is currently listed and needs to be updated, please contact us and we will revise your listing.

If you are looking for a service or product that is not currently offered by a Seneca owned business, there may be an opportunity for you to start your own business. If you or someone you know is interested in starting a small business, take a look at our business loan applications or call our office at (716) 945-7148 to speak with our staff about the loan application process.

SNIEDC’s Deferred Payment Program

The Seneca Nation of Indians Economic Development Company (SNIEDC) offers a  Deferred Payment Program. The Deferred Payment Program provides the ability to defer one monthly payment per year and have that payment added to the end of the loan. If you anticipate having cash flow issues in an upcoming month, you can choose to defer paying for that month while protecting your credit report from being hit with a missed payment.

To take advantage of this opportunity, SNIEDC borrowers will need to have made 12 consecutive monthly payments paid in full and on time. The Deferred Payment form must be filled out completely and returned to SNIEDC no less than 10 days and no more than 30 days before the due date of the payment to be deferred. A fee of $25 is required with the submission of the Deferred Payment form in order for the request to be processed. Please see the Deferred Payment Program description for more details.

Important: The maturity date of your loan will be extended one month and interest will continue to accrue on your loan during the month you deferred your payment.

This program is intended to help our borrowers through economic hardship by remaining in good standing with SNIEDC and protecting your credit report from a delinquent payment.

Click Here to read our Program Description and to download our form