Description
Policy for a community lending circle program that incubates microbusinesses and builds financial literacy. Covers: program purpose; maximum loan and percent financed; term and amortization; stepped interest schedule tied to bank prime (0% in year 1 rising to full prime by year 5, compounded monthly); repayment options in year 1; required security (band council resolution where on reserve, promissory note, lending agreement, pre-authorized debit); circle obligations (group account, bookkeeping, collection and reporting to the lender); and program monitoring.
