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- Details
- By Tribal Business News Staff
- Finance
The U.S. Department of the Treasury announced $65 million in funding to support Native American small business and entrepreneurship through the State Small Business Credit Initiative (SSBCI).
The announcement on July 2 marks the fourth SSBCI funding approval over the past year. The initial announcement was in June 2023, followed by subsequent announcements during the White House Tribal Nations Summit in December 2023 and the Reservation Economic Summit (RES) in March 2024.
To date, the total SSBCI capital commitment to tribal governments has reached $330 million, supporting 93 Tribes. Funding for SSBCI comes from a $10 billion pot of money under the American Rescue Plan Act and includes a total of $500 million set aside for tribes.
The funds are intended to provide capital and technical assistance to help tribal governments create programs that offer funding to tribal small businesses, including equity/venture capital, loan participation, loan guarantees, collateral support, and capital access programs.
The recent announcement reinforces the Biden administration’s commitment to invest in small businesses and entrepreneurs, U.S. Deputy Secretary of the Treasury Wally Adeyemo said in a statement.
This investment aims to address the unique challenges faced by Tribal small businesses, which often lack access to traditional funding sources. By providing critical support through tailored programs, the Treasury seeks to foster economic growth and stability within Tribal communities.
The funding will enable Tribal governments to offer various forms of support to their small businesses, such as equity investments, loan guarantees, and technical assistance. This comprehensive approach is designed to meet the specific needs of Tribal entrepreneurs, who play a vital role in their local economies.
The Treasury, which released a list of tribes that have received funding over the past year, said the following tribes will receive funding in the most recent round:
- Bad River Band of the Lake Superior Tribe of Chippewa Indians of the Bad River Reservation, Wisconsin: Approved for up to $1,923,643. They will operate a single loan participation program (LPP) to purchase loan participations originated by a Native CDFI, supporting Tribal member-owned small businesses across various industries, with a focus on single owner-operated businesses and small businesses supporting regional broadband connectivity.
- Gila River Indian Community of the Gila River Indian Reservation, Arizona: Approved for up to $5,052,342. They will operate one loan guarantee program (LGP) to make financing available to small businesses where borrowers have limited ability to perfect tangible collateral or limited payment history, with an expected emphasis on the agriculture sector.
- Ketchikan Indian Community: Approved for up to $1,426,515. They will operate one collateral support program (CSP) to provide credit support for tribal member-owned small businesses in Alaska, primarily in the tourism industry, while also supporting businesses in the retail, agriculture, and real estate industries.
- Lower Sioux Indian Community in the State of Minnesota: Approved for up to $705,201. They will operate a single loan participation program (LPP) to provide companion loans to Tribally owned and member-owned small and micro businesses across various industries, supporting underserved businesses within 50 miles of the Tribal community.
- Lummi Tribe of the Lummi Reservation: Approved for up to $1,175,953. They will operate three programs: one equity direct venture capital program and two loan participation programs (LPPs). The equity direct program will provide investment for two Tribally owned commercial businesses, while the LPP programs will provide financing to Tribal-owned, member-owned, or local underserved businesses across various industries, with a focus on the fishing industry and projects that impact climate change.
- Mesa Grande Band of Diegueno Mission Indians of the Mesa Grande Reservation: Approved for up to $5,307,619. They will operate one equity funds program to provide affordable access to capital for pre-seed, seed, and early-stage small businesses owned by the consortium Tribes and their Tribal citizens, targeting investment capital in sectors such as technology and renewable energy.
- Oneida Nation: Approved for up to $3,839,291. They will operate one loan participation program (LPP) to promote entrepreneurship and small business growth through accessible financing, targeting small businesses owned by the tribal nation or tribal members, with a focus on the construction, transportation, and service industries.
- Otoe-Missouria Tribe of Indians, Oklahoma: Approved for up to $879,653. They will operate one equity direct program to provide affordable access to capital for the expansion of existing Tribally owned enterprises or new Tribal enterprises in the agriculture, hospitality, and manufacturing sectors, supporting additional job opportunities for tribal members and social, educational, healthcare, and housing programs.
- Pawnee Nation of Oklahoma: Approved for up to $909,145. They will operate one loan participation program (LPP) to provide affordable access to capital for qualified construction, rehab, equipment, and working capital borrowing needs of Tribally-owned enterprises and small businesses owned by Tribal members, with a focus on elder care and health sectors.
- Red Lake Band of Chippewa Indians, Minnesota: Approved for up to $3,347,495. They will operate two programs: one loan guarantee program (LGP) to provide credit support for Tribal-owned and member-owned construction companies to obtain surety bonds for large construction projects, and one equity funds program to provide affordable access to capital for qualified financing needs of Tribal-owned, Tribal member-owned, and underserved small businesses, with a focus on technology-enabled start-up businesses.
- Muscogee (Creek) Nation, Oklahoma: Approved for up to $20,168,057. They will operate three programs: one loan participation program (LPP), one collateral support program (CSP), and one equity direct program. These programs will provide critical access to capital for traditionally underserved small businesses, serving a wide variety of industries and targeting financing for start-ups, with the goal of diversifying the Nation's economic base, creating more employment opportunities for Tribal citizens, and establishing relationships with lenders.
- Saint Paul Island: Approved for up to $740,107. They will operate one Equity/Venture Capital Direct program to make a single direct equity investment in a new Tribally owned small business that provides services to federal government agencies, generating jobs and economic opportunities for tribal members on and off Saint Paul Island.
- Saint Regis Mohawk Tribe: Approved for up to $3,595,613. They will operate one loan participation program (LPP) to provide affordable access to capital for qualified construction and working capital borrowing needs of Tribally owned enterprises and small businesses owned by tribal members, with a focus on the construction, youth services, and other sectors.
- Sault Ste. Marie Tribe of Chippewa Indians, Michigan: Approved for up to $10,017,610. They will operate two programs: one loan participation program (LPP) and one collateral support program (CSP) to provide critical access to capital for traditionally underserved small businesses across various industries, creating local jobs for Tribal members and establishing relationships with lenders.
- The Manzanita Band of Diegueno Mission Indians of the Manzanita Reservation, California: Approved for up to $619,889. They will operate one loan participation program (LPP) to provide affordable access to capital for qualified construction and working capital borrowing needs of Tribally owned enterprises and small businesses owned by tribal members, with a focus on the clean energy, education, elder care, and health sectors.
- The Spirit Lake Tribe, North Dakota: Approved for up to $1,677,967. They will operate one loan participation program (LPP) to provide affordable access to capital for qualified construction, rehab, equipment, and working capital borrowing needs of Tribally-owned enterprises and small businesses owned by tribal members, with a focus on the construction, entertainment, commercial goods, and community services sectors.
- The Standing Rock Sioux Tribe of North and South Dakota: Approved for up to $3,576,734. They will operate a single loan participation program (LPP) to provide credit support for Tribal member-owned companies and support small businesses in the food production, livestock, and agriculture industries, aiming to increase the number and development of small businesses on the Tribe's reservation and provide economic opportunities for Tribal members.
- Winnemucca Indian Colony of Nevada: Approved for up to $609,643. They will operate one Equity/Venture Capital Direct Program to support the equity financing of Tribally owned enterprises, creating sustainable full-time jobs and providing additional revenues for the Tribe to support public services including health, education, and social services.