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ILGP Borrower Success Story: Redding Rancheria Economic Development Corporation

The Redding Rancheria has used the loan guarantee program both for essential government facilities as well as business.

In 1994, a loan guarantee provided necessary support for financing the tribe’s first health clinic. In 1997, a second guarantee supported financing for the Tribe’s headquarters facility.

Between 2000 and 2003, three additional guarantees to subsidiaries of the Redding Rancheria Economic Development Corporation (RREDC) supported development of other businesses.

Details

Date of Commitment: 2000Redding Mini-Mart Convenience StoreType of Service: Loan GuaranteeBorrowerRREDCProject: Mini-Mart Conveinince StoreFinancing Amount: $700,000 (paid in full 2014)Location: Redding, CA

Description

The Redding Rancheria has used the loan guarantee program both for essential government facilities as well as business. In 1994, a loan guarantee provided necessary support for financing the tribe’s first health clinic. In 1997, a second guarantee supported financing for the Tribe’s headquarters facility.

Between 2000 and 2003, three additional guarantees to subsidiaries of the Redding Rancheria Economic Development Corporation supported development of the Rancheria’s Hilton Garden Inn, the Win River Mini-Mart with a service station and the acquisition of a moving and storage company in Sacramento. The hotel and mini-mart have been very successful.

While all five of the underlying financings have been paid off, the loan guarantee program was instrumental in assisting the tribe in developing its financial foundation. Economic diversification is a critical part of the Rancheria’s strategies and requires appropriate risk management and insulation of business assets. While the Redding Rancheria’s successes make it easier to locate financing today, the loan guarantee program remains an important tool to continue economic diversification for new acquisitions and start-up businesses.

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