Treasury’s allocation of over $500 million in SSBCI funding to Tribal Nations is the largest federal investment in Indian Country small businesses in history.
WASHINGTON – Today, the U.S. Department of the Treasury (Treasury) announced reaching a major milestone with the approval of over $500 million in State Small Business Credit Initiative (SSBCI) Capital Program applications from Tribal Nations. This milestone was reached with the approval of up to $86.9 million for the Cherokee Nation and the approval of eight additional applications worth an additional $15 million. Through this $500 million investment, Tribes are expected to leverage as much as $5 billion in additional financing to support Native entrepreneurs and small businesses.
To date, Treasury has approved applications for up to $523 million in Tribal Capital Program allocations, representing 235 Tribal Nations. The SSBCI investment in Tribal entrepreneurs and economies supports Tribal Nations in providing critical access to capital, crowding in private lending and investment.
Today, Treasury is also announcing the approval of 14 Tribal government SSBCI Technical Assistance (TA) Grant Program awards totaling $3.9 million. This now brings the total TA Grant Program Tribal awards to 15 Tribal governments totaling $4 million. The SSBCI TA Grant Program supports programs that provide legal, accounting, and financial advisory services to qualifying small businesses. In addition to today’s announcement, Treasury has announced the approvals of SSBCI TA Grant Program awards allocated by formula to states, the District of Columbia, territories, and Tribal governments, representing nearly $149 million for 62 jurisdictions. Treasury anticipates additional approvals of applications to follow. See the full list of announced program approvals here.
“I am proud to announce the approval of over $500 million in funding for Native American small businesses. These investments increase access to capital and expand economic opportunity in tribal communities. With this funding, these entrepreneurs will be able to access the technical assistance they need in order to hire more employees, grow their businesses, and advance innovation, which – in turn – grows our economy as a whole,” said Vice President Kamala Harris.
“Today’s announcement demonstrates the Biden-Harris Administration’s historic commitment to investing in the economies of Tribal Nations and creating opportunities for their citizens,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “Small businesses are critical to long-term economic development, and today’s announcement will help thousands of entrepreneurs access capital that will help them expand and grow.”
“We often say that small businesses are the lifeblood of the local economy in Cherokee communities across the reservation, and that is certainly true today. Through this historic partnership with the U.S. Treasury, Cherokee Nation will partner with financial institutions to provide Native-owned businesses access to capital for the start-up or expansion,” said Cherokee Nation Principal Chief Chuck Hoskin Jr. “These funds will help to create community-based jobs and needed capital for businesses that are in all stages of their life cycle. Together with the additional services and resources we are able to provide Cherokee citizens, I know this historic funding is going to bring a wave of new opportunities across the Cherokee Nation Reservation.”
“Investments in entrepreneurship and small businesses are critical to a healthy economy,” said Chickasaw Nation Governor Bill Anoatubby. “We look forward to how this award and partnership with the State Small Business Credit Initiative will greatly benefit Chickasaw business owners and other small business owners where Chickasaw citizens reside. We intend to utilize this award to expand these small businesses’ access to capital, as well as vital connections to legal, accounting and financial advisory services.”
“Small businesses are the heartbeat of our economy, and Tribal businesses are vital employers on reservations and in their surrounding communities,” said U.S. Congresswoman Sharice Davids, Co-Chair of the Congressional Native American Caucus. “Providing easier access to capital through resources like the SSBCI Program will empower Native entrepreneurs for generations to come.”
“Last Congress, Democrats passed the American Rescue Plan to support the SSBCI program. Now we have the largest single federal investment in Indian Country small businesses in history. Investing in Native American-owned small businesses creates local jobs and builds family wealth. Indeed, economic sovereignty is key to tribal sovereignty,” said U.S. Congresswoman Teresa Leger Fernández. “In New Mexico, the Navajo Nation and the Pueblos of Zuni and Taos are already benefiting from this program. It’s great to see the Cherokee and Chickasaw Nations will benefit as well. I look forward to what this funding will do for tribes across the country.”
With today’s announcement of $86.9 million to Cherokee Nation, the Tribe will be able to utilize the Tribal flexibilities in the SSBCI program to serve small businesses on the Cherokee Nation’s reservation, which covers 14 counties in Oklahoma, with capital and technical assistance. This includes through a loan participation program which will connect local businesses with financial institutions and help deploy capital through the Tribe’s community development financial institution.
Treasury also recently announced two competitive technical assistance awards through the SSBCI Investing in America Small Business Opportunity Program (SBOP) for the Cherokee and Chickasaw Nations.
Through their $2 million SBOP award, Cherokee Nation Commerce Services will connect underserved small businesses in the 14 counties of the Cherokee Nation in Oklahoma with industry experts and foster collaboration with local financial institutions. This will be done through specialized business coaching in collaboration with Native American-owned The Strategy Group, LLC. The intended results of the program will be quality jobs for Tribal citizens, support for entrepreneurs and small business employees, multiplier impacts along the supply chain, and rural healthcare improvements through entrepreneurial innovation.
Chickasaw Nation will use their $2 million SBOP award to support businesses located in the Chickasaw Nation treaty territory, an area covering 13 counties, as well as Chickasaw-owned businesses across the U.S., with a focus on agriculture and construction businesses. Partners in this initiative will include Murray State College, the Ardmore Chamber of Commerce, and i2E, Inc. The Chickasaw initiative will be supported by $225,000 in matching funds from Chickasaw Nation Community Development Endeavor, LLC.
Treasury’s SSBCI program includes over $500 million in allocations to support Tribal small business financing programs and is the largest one-time support for Tribal small businesses. Through Tribal consultation and significant Tribal engagement, Treasury’s SSBCI program and Office of Tribal and Native Affairs implemented application extensions, policy customization, trainings, and direct one-on-one outreach to increase access to this unique opportunity for Tribal Nations.
The American Rescue Plan reauthorized and expanded SSBCI, which provides nearly $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities. Through the SSBCI Capital Program, Treasury has approved plans for small business financing programs totaling over $8.7 billion and representing every state and territory, the District of Columbia, and 235 Tribal governments.
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Official news published at https://home.treasury.gov/news/press-releases/jy2653
