- Details
- By Chez Oxendine
- Finance
LAS VEGAS — The United States Treasury announced a new round of approvals for tribal support under the State Small Business Credit Initiative (SSBCI), a 2010 program aimed at helping open new avenues to credit by supporting funding institutions.
Treasury Secretary Janet Yellen announced $105 million in new SSBCI funding via a video address this morning at the 2024 Reservation Economic Summit (RES) in Las Vegas. The funding round, the third announced by the Treasury over the past nine months, brings the total number of SSBCI-support tribes to 80 and the total amount awarded to $265 million.
Such investments are crucial in Indian Country, where nearly 46% of people in Native-majority census tracts live in banking deserts — more than 12 times the national average, Yellen said.
“Tribal economies are critical to the U.S. economy. They have been since our nation’s founding, but for too long we’ve seen significant underinvestment, limited access to capital, and higher poverty rates for Tribal communities,” Yellen said during prepared remarks. “At Treasury, we believe that such a severe lack of access to capital is unacceptable—and also that we can contribute to changing it.”
Awards in this round of SSBCI funding include:
- Oglala Sioux Tribe – $10,150,666
- Navajo Nation – $88,739,540
- Seneca–Cayuga Nation – $1,196,612
- Wampanoag Tribe of Gay Head (Aquinnah) – $721,863
- Cheyenne and Arapaho Tribes, Oklahoma – $2,869,249
- Coushatta Tribe of Louisiana – $687,039
- Summit Lake Paiute Tribe of Nevada – $621,389
The approved projects range from a loan guarantee program on the Navajo Nation to an equity and venture capital program under the Seneca-Cayuga Nation, which will target investments in the technology and construction industries, per a statement released by Treasury.
Loan participation programs, which allow tribal governments to support originating lenders by way of either purchasing portions of a loan or through subordinate loans, are another popular application among many of the new awardees.
The SSBCI program opened its doors to tribal approvals in 2021 with a $500 million allocation under the American Rescue Plan Act, the single-largest allocation toward small businesses in Indian Country in U.S. history, per a Treasury statement.
The Treasury began awarding the SSBCI money in 2023, first through a $79 million distribution and then in a second wave, awarding $86 million.
Prior Tribal Business News reporting points to SSBCI funding as a “catalyst” for economic impact in Indian Country. U.S. Treasurer and lifetime Mohegan Chief Lynn Malerba said in a previous story that $1 of SSBCI funding should attract $10 of private investment, creating a multiplier effect.
Malerba reiterated that sentiment in speaking to Tribal Business News about the third wave of funding.
“Tribal economic development is a force multiplier for local economies – improving the lives and livelihoods of Tribal citizens while lifting up our nation,” Malerba said. “These resources from the Treasury Department’s State Small Business Credit Initiative are part of the largest single investment in Tribal small business financing in our history, and they will unlock new opportunities for Native businesses and entrepreneurs.”
FUNDING RECIPIENTS
The Treasury provided Tribal Business News with additional information about how the SSBCI funding recipients during the third round of announcements plan to use the funding.
The Oglala Sioux Tribe, approved for up to $10,150,666, will operate one loan participation program (LPP). This program will meet the needs of the Oglala Sioux Tribe by providing affordable credit support for tribal member-owned small businesses and small businesses on or near Oglala’s Pine Ridge Reservation in South Dakota. The program anticipates serving small businesses across multiple industries including, but not limited to, construction, technology, agriculture, manufacturing, retail, sustainable energy, and travel, and tourism. The Oglala Sioux Tribe estimates that the program will create economic opportunities and a significant amount of jobs for tribal members. The program is also expected to improve energy and transportation infrastructure, food security, community growth, and workforce development for the Tribe and its surrounding communities.
Navajo Nation – Arizona, New Mexico, Utah, approved for up to $88,739,540, will operate a loan guarantee program and a loan participation program. Both programs will target eligible small businesses and tribal enterprises that can create jobs for tribal members both on and off the reservation in industries such as construction, business services, energy, agriculture, and art. The Navajo Nation plans to use its network of 5 Regional Business Development Offices to support the expansion of small business lending on tribal lands and identify businesses that need additional support to further improve economic development opportunities in the Navajo Nation’s communities.
The Seneca-Cayuga Nation, approved for up to $1,196,612, will operate one Equity/Venture Capital Direct program. This program expects to make direct investments in three tribally-owned enterprises and projects that will target the technology and construction industries as well as a tribally-owned gas station and convenience store. The Seneca-Cayuga Nation expects its equity program investments to create new quality jobs for tribal members as well as expand the Tribe’s economic capacity to support future growth.
The Wampanoag Tribe of Gay Head Aquinnah (WTGHA), approved for up to $721,863, will operate one loan participation program. This program will provide much needed credit support for WTGHA Tribal citizens who are creating or expanding small businesses for which they have a controlling interest. The program anticipates serving small businesses across multiple industries with a focus on the tourism, hospitality, and construction industries. WTGHA’s LPP program is expected to lead to job creation for Tribal members and provide tribal entrepreneurs access to affordable financing to overcome the high materials and logistics costs of operating businesses on Martha’s Vineyard, where WTGHA is located.
The Cheyenne and Arapaho Tribes, Oklahoma, approved for up to $2,869,249, will operate one loan participation program (LPP). This program will meet the needs of the Cheyenne and Arapaho Tribes by providing affordable credit support for majority tribal-owned small businesses. The program anticipates serving small businesses across multiple industries including, but not limited to, agriculture, energy, professional services, and manufacturing. Cheyenne and Arapaho’s LPP will be implemented by its wholly owned, non-profit Cheyenne and Arapaho Community Development Corporation (CACDC). In addition to providing affordable credit support, the Cheyenne and Arapaho Tribes expect the programs to promote job opportunities and greater financial education for Tribal members.
The Coushatta Tribe of Louisiana, approved for up to $687,039, will operate one loan participation program. This program will meet Coushatta’s needs of providing affordable access to capital to support qualified construction, rehab, equipment, and working capital borrowing needs of Tribally-owned enterprises and small businesses owned by tribal members. Coushatta’s loan participation program is expected to target access to capital needs in the construction, education, and eldercare sectors and estimates that the program will create jobs for tribal members and provide expanded elder care and educational program access to tribal members.
The Summit Lake Paiute Tribe of Nevada, approved for up to $621,389, will operate one collateral support program (CSP). The program will meet the needs of the Summit Lake Paiute Tribe by providing much needed credit support for tribal member-owned small businesses and small businesses located on Summit Lake tribal land. The CSP Program anticipates serving small businesses in multiple industries, including businesses that support the preservation of natural resources. The Tribe expects that the CSP program will be instrumental in helping provide jobs for tribal members and foster long-term economic growth for the Tribal jurisdiction.
