FSA makes loans to individual rural youths to establish and operate income-producing projects of modest size in connection with their participation in 4-H clubs, Future Farmers of America, and similar organizations.
Each project must be part of an organized and supervised program of work. The project must be planned and operated with the help of the organization adviser, produce sufficient income to repay the loan, and provide the youth with practical business and educational experience.
Each year, many young entrepreneurs take advantage of these loans and gain valuable business experience in the process
NTDA will provide the following services at no charge to the youth.
• Outreach to youth
• Identification of youth interested in entrepreneurship
• Work with Tribal business planners and educators if available to prepare, if not available, NTDA will provide these services
• Youth Loan packaging
• Hands on mentoring for youth projects
• Development of youth business network including communication
• Follow-up with youth businesses so that success is enhanced.
• Report to Tribal Council both successes and failures of the project
Almost any agricultural or aquacultural project for rural youth is fundable.
• The project must be income producing so that the loan may be repaid.
• The project must be carried out under supervision
• Will provide the youth with practical business and educational experience.
• Loan Amounts are for up to $5000, with a repayment term of up to seven (7)
years.
• The type of business and the use of the funds will determine the term of the
loan.
• The payment plan depends on the type of business. Weekly, monthly, and annual payments may be used.
• FSA provides funding to modest size businesses.
• FSA will review the overall objectives, size, and if there is adequate capital for repayment before making the loan.
• Youth applicants must sign a promissory note, and be responsible for repaying the loan
• Have parental permission to enter into the loan.
• Eligibility for these loans:
• Be a citizen of the United States
• Be between 10 - 20 years of age
• Live in a rural area or town of less than 10,000
• Conduct a modest size income producing project in a supervised program
of work.
• As long as youth repay loans this program is available to them to continue the business.
• Youth must prepare a business and marketing plan.
Made possible by a grant provided by the Administration for Native Americans
Copyright © 2006 National Tribal Development Association
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