25 CFR § 103.25 - What kind of borrower is eligible under the Program?

---
identifier: "/us/cfr/t25/s103.25"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "25 CFR § 103.25 - What kind of borrower is eligible under the Program?"
title_number: 25
title_name: "Indians"
section_number: "103.25"
section_name: "What kind of borrower is eligible under the Program?"
chapter_name: "BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR"
subchapter_number: "G"
subchapter_name: "FINANCIAL ACTIVITIES"
part_number: "103"
part_name: "LOAN GUARANTY, INSURANCE, AND INTEREST SUBSIDY"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "25 U.S.C. 1498, 1511."
regulatory_source: "66 FR 3867, Jan. 17, 2001, unless otherwise noted."
cfr_part: "103"
---


# 103.25 What kind of borrower is eligible under the Program?

(a) A borrower is eligible for a BIA-guaranteed or insured loan if the borrower is:

(1) An Indian individual;

(2) An Indian-owned business entity organized under Federal, State, or tribal law, with an organizational structure reasonably acceptable to BIA;

(3) A tribe; or

(4) A business enterprise established and recognized by a tribe.

(b) To be eligible for a BIA-guaranteed or insured loan, a business entity or tribal enterprise must be at least 51 percent owned by Indians. If at any time a business entity or tribal enterprise becomes less than 51 percent Indian owned, the lender either may declare a default as of the date the borrower stopped being at least 51 percent Indian owned and exercise its remedies under this part, or else continue to extend the loan to the borrower and allow BIA's guaranty or insurance coverage to become invalid.

[66 FR 3867, Jan. 17, 2001; 66 FR 46307, Sept. 4, 2001]