2.2 NNSSBCI PROGRAMS The DED is seeking a Participating Lender to administer NLGP and NLPP on behalf of the Navajo Nation. The Scope pf Work (“SOW”) for a Participating Lender(s) is as follows: 2.2.1 Navajo Loan Guarantee Program Overview ($250,000 - $20,000,000) The NLGP will provide small business loans to eligible small business borrowers, targeting borrowers with less than 500 employees and not allowing loans to borrowers with more than 750 employees. Within these parameters, the Navajo Nation will establish and refine the scope of eligibility for small businesses based on lessons learned through NLGP implementation, so long as the requirements for eligibility ensure primary benefit to Navajo owned and Navajo Nation owned businesses, and may provide for benefit to other small businesses clearly demonstrating substantial Navajo benefit (e.g., through significant employment opportunity for Navajo members). The selected Participating Lender(s) will create reserve accounts not to exceed any guaranty commitment. The selected Participating Lender(s) and DED will administer the NLGP reserve accounts, which may involve a separate fund for each lender. The guarantee shall be for the full term of the loan. Funds held in each of the reserve accounts will be released from the reserve and restored to the NLGP’s capital account as each borrower repays their loan to the lender. In other words, as the loan balance is reduced through repayment, the reserve amount for the loan guarantee will be reduced and the corresponding funds will be recycled for new loan guarantees.
