Chapter 3.16R SMALL BUSINESS FUND ORDINANCE -- RULES AND REGULATIONS

These rules and regulations have been adopted by the Puyallup Tribal Council pursuant to the Tribe’s Small Business Fund Ordinance (SBFO). These rules and regulations spell out in greater detail the guidelines for administration of the Small Business Fund by the Small Business Fund Administrator.

The Fund was created by the Settlement Agreement of August 27, 1988, among the Tribe and other parties. The earnings on the Fund will be used to support and assist in the development of business enterprises by Puyallup Tribal members. The principal of this Fund shall not be expended for any purpose.

The terms used in these regulations shall be as defined in the SBFO (Chapter 3.16 PTC). [Res. 061290 (12/06/90)]

Subchapter 1. Eligibility

3.16R.010 Eligibility for a grant.

To be eligible for a grant from the Fund, a person must be:

(a) An enrolled member of the Puyallup Tribe;

(b) Twenty-one years of age or older; and

(c) An owner of a business that is 100 percent owned by Tribal members. To fall within the definition “100 percent owned by Tribal members”:

(1) A partnership must be composed entirely of Tribal members;

(2) A corporation’s shareholders (or principals by any other title) must all be Tribal members. [Res. 061290 (12/06/90) § 1.1]

3.16R.020 Eligibility for a startup grant.

An applicant will be eligible for a startup grant only if the business for which the grant shall be used either:

(a) Has not begun operation; or

(b) If the business has begun operation, has not had gross receipts of more than $5,000. [Res. 061290 (12/06/90) § 1.2]

3.16R.030 Application form.

An applicant must complete in full the application form provided by the Administrator, including a release authorizing the Administrator to obtain information needed to evaluate the application and directing persons with relevant information to release it to the Administrator. (A copy of the application form is attached to these rules and regulations.) [Res. 061290 (12/06/90) § 1.3]

3.16R.040 Application for a startup grant – Business plan.

In order to apply for a startup grant, an applicant must submit a business plan containing at least the following information:

(a) An outline of the structure and operation of the business;

(b) An outline of the financing of the business;

(c) A discussion of the business experience and expertise of the applicant and any other persons who will be involved in the business;

(d) The goals of the business. [Res. 061290 (12/06/90) § 1.4]

3.16R.050 Application for an equity grant.

In order to apply for an equity grant, an applicant must submit paperwork confirming that s/he has obtained a federally guaranteed loan, or would be able to obtain a federally guaranteed loan if s/he had sufficient equity capital to devote to the business venture. [Res. 061290 (12/06/90) § 1.5]

3.16R.060 Applicant not eligible for startup grant.

An applicant will not be eligible for a startup grant if s/he has previously received an equity grant under this program. [Res. 061290 (12/06/90) § 1.6]

3.16R.070 Eligibility for an equity grant.

To be eligible for an equity grant, the applicant’s business must be listed or registered with the federal, state, or Tribal governments as an ongoing business concern. [Res. 061290 (12/06/90) § 1.7]

3.16R.080 Subsequent applications.

If a Tribal member has previously received a grant, the Tribal member shall not receive another grant until at least one year has passed since receipt of the previous grant. The Administrator’s evaluation of the business plan submitted with the subsequent application shall include an analysis of the previous business venture(s). [Res. 130291 (02/13/91); Res. 061290 (12/06/90) § 1.8]

Subchapter 2. Procedures for Decisions on Grant Applications

3.16R.090 Decisions made by Administrator.

All consideration of and decisions on grant applications will be made by the Administrator. [Res. 061290 (12/06/90) § 2.1]

3.16R.100 Consideration in order applications received.

The Administrator will consider applications in the order received, subject to the conditions set forth in PTC 3.16.160. The Administrator will maintain a single list of all applications for the purpose of determining the order of consideration. [Res. 061290 (12/06/90) § 2.2]

3.16R.110 Additional information requests.

If the Administrator feels that additional information is needed to give proper evaluation to an application, s/he shall request that information from the applicant. [Res. 061290 (12/06/90) § 2.3]

3.16R.120 Notification regarding Administrator’s decision.

The Administrator shall give written notification to each applicant of the decision made on her/his application, including notification of any conditions that are placed on the grant. If the Administrator does not approve a grant, s/he shall explain to the applicant the reasons for that action, and shall provide the applicant an opportunity to discuss the proposal with the Administrator and to provide any additional information. [Res. 061290 (12/06/90) § 2.4]

3.16R.130 Notice by applicant for sale of business.

Each applicant is required to inform the Administrator if s/he sells his/her business or business interest:

(a) During the time s/he has an application pending for a grant under this program; or

(b) After s/he has received a grant and before s/he has made her/his final report on use of the grant funds. [Res. 061290 (12/06/90) § 2.5]

Subchapter 3. Disbursement Procedures and Use of the Grant Funds – Startup Grants

3.16R.140 Check issuance.

After approval of a startup grant application by the Administrator, a check will normally be issued within 15 to 30 working days after approval of the grant, subject to usual bank procedures. If there is to be any additional delay (e.g., the need to wait until sufficient earnings are generated by the Small Business Fund), the Administrator will notify the applicant in writing. [Res. 061290 (12/06/90) § 3.1]

3.16R.150 Certified check.

A certified check will be issued, made payable to the applicant, and will be forwarded to the custody of the Administrator. The Administrator shall not release the check to the applicant until the applicant has signed a form prepared by the Administrator agreeing to comply with the SBFO (Chapter 3.16 PTC), these rules and regulations, and any conditions placed on the grant by the Administrator. [Res. 061290 (12/06/90) § 3.2]

3.16R.160 Startup grant not to be used for salaries and wages.

Unless the nature of the business or other circumstances justify otherwise, the grantee shall not use any portion of a startup grant to pay salaries and wages for the grantee or persons related to the grantee. [Res. 061290 (12/06/90) § 3.3]

3.16R.170 Education and counseling.

When, in the Administrator’s judgment, an applicant’s lack of sufficient business training and/or experience may interfere with the success of his/her business enterprise, the Administrator shall require, as a condition of the grant, that the applicant obtain education and/or counseling in business matters as specified by the Administrator. [Res. 061290 (12/06/90) § 3.4]

3.16R.180 Startup grant to be used for starting new business.

A startup grant is a one-time award and shall not be used for anything but the cost of starting up a new business. Allowable costs include licensing, bonding, insurance, rental, inventory, equipment, or other expenses necessary to form or expand the business. A grantee shall not use the grant funds for other business purposes unless s/he first receives written approval from the Administrator. The business must be operated within the guidelines of the business plan that was submitted with the grant application, unless a modification is approved by the Administrator. [Res. 061290 (12/06/90) § 3.5]

Subchapter 4. Disbursement Procedures and Use of the Grant Funds – Equity Grants

3.16R.190 Equity grant deposited in an escrow account.

Each equity grant shall be deposited in an escrow account established for that purpose and approved by the Administrator. The escrow account shall be in the bank or institution from which the grantee has obtained a federally guaranteed loan. The funds shall remain in the escrow account as security for repayment of the loan, and for assurance that the funds will be used for purposes appropriate under the SBFO (Chapter 3.16 PTC). [Res. 061290 (12/06/90) § 4.1]

3.16R.200 Grantee default on federally guaranteed funds.

In case the grantee defaults on repayment of his/her federally guaranteed loan, that portion of the funds necessary to cure the default will be released to the lender. [Res. 061290 (12/06/90) § 4.2]

3.16R.210 Remaining funds returned to Tribe if misused.

After full repayment of the loan, any remaining funds will be released to the Tribe if it is determined that the grantee has used any of the funds for purposes not permitted by the SBFO (Chapter 3.16 PTC) and these rules and regulations. [Res. 061290 (12/06/90) § 4.3]

3.16R.220 Release of funds from escrow account.

After full repayment of the loan, any remaining funds will be released to the grantee when the escrow holder is instructed in writing by the Administrator to do so. The Administrator shall give that instruction when s/he has approved a plan submitted by the grantee specifying the expenses to be paid using the funds. The Administrator shall be authorized, in his/her discretion, to direct periodic release of portions of the funds. [Res. 061290 (12/06/90) § 4.4]

3.16R.230 Administrator determines portion usable to pay salaries and wages.

The Administrator shall determine in each case what portion of the equity grant the grantee will be permitted to use to pay salaries and wages for the grantee or persons related to the grantee. [Res. 061290 (12/06/90) § 4.5]

Subchapter 5. Reporting Requirements

3.16R.240 Regular reports on use of funds.

Each applicant must make regular reports on the use of the funds to the Administrator. The Administrator shall determine, in each case, whether the reports will be monthly or quarterly. This reporting requirement expires when:

(a) All the grant funds have been released by the Tribe or escrow holder;

(b) The grantee has expended all of the funds; and

3.16R.250 Information to be included in reports.

Each report shall include at least the following information for the time period since the previous report:

(a) Amount of grant funds spent;

(b) Expenses paid with the grant funds;

(d) Overall revenue and expenses of the business; and

(e) Any other information requested by the Administrator.

The Administrator will provide a form for this report. (A copy of the form is attached to these rules and regulations.) [Res. 061290 (12/06/90) § 5.2]

Subchapter 6. Assistance to Tribal Members

3.16R.260 Administrator assistance to Tribal members.

The Administrator will provide assistance to Tribal members, within the limits of his/her available time, in the following ways:

(a) Preparation of a grant application;

(b) Preparation of a business plan;

(d) Preparation of reports required by these rules and regulations. [Res. 061290 (12/06/90) § 6.1]

3.16R.270 Process to obtain assistance.

To obtain assistance, an applicant or grantee should make an appointment by calling the Administrator. If the applicant or grantee misses the appointment, s/he should reschedule with the Administrator. If an appointment is canceled by the Administrator, s/he will contact the applicant/grantee to reschedule the appointment. [Res. 061290 (12/06/90) § 6.2]

Subchapter 7. Appeals

3.16R.280 Filing appeal.

The SBFO (Chapter 3.16 PTC) allows a Tribal member who has been denied a startup grant to appeal that decision. In order to file such an appeal, an applicant must give to the Administrator written notice of the desire to appeal within 30 days after receiving notice of the rejection. The notice shall include a description of the reasons the applicant feels the application should have been approved, and any additional information s/he feels should be taken into account. The Administrator shall forward the notice to Council. [Res. 061290 (12/06/90) § 7.1]

3.16R.290 Ad hoc appeal board.

The SBFO (Chapter 3.16 PTC) provides that the Council shall appoint an ad hoc three-person appeal board for consideration of the appeal. The Administrator shall maintain for the Council’s use a list of persons generally knowledgeable in the field of business development and operation who are willing to serve from time to time on appeal boards. [Res. 061290 (12/06/90) § 7.2]

3.16R.300 Board to hear single or series of appeals.

Depending on the frequency of appeals under the SBFO (Chapter 3.16 PTC), the Council shall appoint an appeal board to hear either a single appeal or a series of appeals that have been filed. A person may appear on an appeal board on more than one occasion. [Res. 061290 (12/06/90) § 7.3]

3.16R.310 Notification of hearing.

The appeal board shall notify the applicant of the time and date of the hearing to be held to consider the appeal. The hearing shall be informal. The Administrator shall explain the reasons for denying the application, and the applicant may present any additional information and reasons s/he believes should be taken into account. [Res. 061290 (12/06/90) § 7.4]

3.16R.320 Appeal board’s decision.

The appeal board shall issue a written decision within 30 days after the hearing. [Res. 061290 (12/06/90) § 7.5]

3.16R.330 Information gathered held in strict confidence.

The appeal board shall hold all information presented to it in strict confidence. [Res. 061290 (12/06/90) § 7.6]

Subchapter 8. Other Matters Relevant to Resolution to Problems

3.16R.340 Referral to Tribal Prosecutor for intentional misuse of funds.

In any case where the Administrator has reason to believe that there may have been intentional misuse of grant funds, s/he shall refer the matter to the Tribal Prosecutor for appropriate action under Tribal law. [Res. 061290 (12/06/90) § 8.1]

3.16R.350 Other issues to Tribal Council.

If any question arises that is not covered by the SBFO (Chapter 3.16 PTC) or these rules and regulations, the Administrator shall bring the matter before the Council for direction. [Res. 061290 (12/06/90) § 8.2]