- Details
- By Brian Edwards
- Indigenous Entrepreneurs
WASHINGTON — The U.S. Department of Treasury announced an additional $8.6 million in State Small Business Credit Initiative (SSBCI) funding for tribal governments on Friday, bringing the program's total tribal allocations to more than $530 million.
The latest funding round, announced during a tribal finance summit, includes $7.4 million in capital program allocations to 11 tribal governments and $1.2 million in technical assistance grants. Among the recipients, the Penobscot consortium, representing five tribal governments, received $3.2 million to operate a loan participation program targeting hospitality and social services businesses.
“The SSBCI capital program represents the largest federal investment in Indian Country small businesses in history,” Zakaria Shaikh, a consultant from the Treasury Department, said during the Native CDFI Network's annual summit in Washington, D.C.
The program has now approved capital allocations for 246 tribal governments, with technical assistance grants awarded to 20 tribes. Treasury officials indicated that additional technical assistance funds remain to be awarded as tribes complete the review process.
“We are close to the finish line,” said a Treasury official who spoke on background about the remaining applications under review.
During a panel discussion at Friday's announcement, tribal financial leaders highlighted how SSBCI funds are already supporting economic development, particularly in clean energy projects. Ted Piccolo, senior director of Indigenous futures at Mission Driven Finance, described a successful collaboration that used SSBCI funding to develop electric vehicle charging stations on tribal lands.
Dave Tovey, executive director of the Umatilla Tribes' Nixyáawii Community Financial Services, shared how his organization is using a $869,000 allocation to support small business loans and provide collateral support for larger projects.
The SSBCI program, funded through the American Rescue Plan Act, set aside $500 million specifically for tribal governments. The actual allocation has exceeded that amount, reaching $530 million due to additional incentive funds from the Treasury.
The program's impact is expected to extend well beyond the initial investment. Recently retired U.S. Treasurer Chief Lynn Malerba (Mohegan) previously told Tribal Business News that every dollar of SSBCI funding is designed to catalyze up to $10 in private investment, potentially generating billions in economic activity across Indian Country.
The Penobscot consortium plans to use its new funding to support startups with 10 or fewer employees, aiming to generate jobs and boost tourism through small business financing in the hospitality sector.
Along with the funding announcement, the Treasury released a comprehensive policy brief examining the challenges Native communities face in accessing financial services. The brief highlighted stark disparities, noting that over 12% of American Indian or Alaska Native households are unbanked—triple the national average of 4%.
The document outlines four key recommendations: sustaining federal programs supporting tribal access to capital, implementing the Treasury's National Financial Inclusion Strategy, expanding responsible financial services on Native lands, and increasing technical assistance for Native-owned businesses. It also notes that Native Americans face higher interest rates on personal credit and mortgages, with tribal lands borrowers paying interest rates averaging 204 basis points higher than off-reservation white borrowers.
