The U.S. Department of the Treasury has announced the approval of plans to allocate up to $73 million in funding to 39 Tribal governments under the American Rescue Plan’s State Small Business Credit Initiative (SSBCI). This significant investment, part of President Biden’s Investing in America agenda, represents the largest and most expansive one-time funding for Tribal governments to support small business financing in the history of the nation.
The funding aims to strengthen the relationship between the Biden-Harris Administration and Tribal nations, supporting Tribal economic growth and self-determination. By reducing barriers to capital access, this initiative seeks to address historical underinvestment in economic development for Tribal communities.
Chief Lynn Malerba, Treasurer of the United States, emphasized the importance of this funding, noting that Native Americans experience a poverty rate twice the national average. The approved plans will enable Tribal governments, Native-owned businesses, and enterprises within Tribal jurisdictions to create an ecosystem that fosters economic opportunities for Tribal citizens and surrounding communities.
The American Rescue Plan expanded the State Small Business Credit Initiative, providing nearly $10 billion to states, territories, the District of Columbia, and Tribal governments to increase capital access and promote entrepreneurship, especially in underserved communities recovering from the pandemic. Notably, this expansion includes the first-ever dedicated support for Tribal governments under SSBCI, with over $500 million allocated to historic support for Tribal small businesses and enterprises. The impact of this funding extends beyond Tribal communities, creating jobs and economic opportunities in surrounding areas.
The approved plans include several noteworthy allocations:
- Menominee Indian Tribe of Wisconsin (MITW): Up to $2 million has been allocated to MITW to address capital access barriers in a county with a poverty rate approximately double the state’s average. MITW’s SSBCI program will collaborate with lenders, including a Native Community Development Financial Institution (CDFI), to support small businesses owned by Tribal members, chartered by the Menominee Tribe, or located on the Menominee reservation.
- Affiliated Tribes of Northwest Indians Economic Development Corporation (ATNI-EDC): Up to $22 million has been allocated to ATNI-EDC to operate SSBCI programs on behalf of 25 Tribal governments spread across California, Oregon, Washington, Idaho, and Arizona. These programs will provide support to Native American entrepreneurs, Tribal enterprises, and the development of Tribal business credit ecosystems in rural communities with limited access to capital.
- Yurok Tribe of California: Up to $1.4 million has been allocated to the Yurok Tribe, the largest Tribe in California. The funding will be used to establish new loan participation programs in partnership with the Tribe’s Native CDFI, Alliance CDFI. These programs aim to address the lack of financial services in a remote community with high poverty rates, supporting small businesses owned by Tribal members and Tribal enterprises.
Today’s announcement demonstrates the Treasury Department’s increased engagement with Tribes and its collaboration with the Biden-Harris Administration to enhance investments in Indian Country. It signifies the administration’s commitment to fostering long-term prosperity and an equitable recovery for Tribal communities. A comprehensive overview of the Biden-Harris Administration’s historic investments in Tribal communities can be found in the White House fact sheet provided.
The Treasury Department’s initiatives, combined with the American Rescue Plan’s targeted funding for Tribal communities, are pivotal steps toward empowering Native American entrepreneurs, fostering economic growth, and supporting self-determination.