SSCBI Funds that Total $500 Million will Help Tribes

Toby Vanlandingham, a tribal councilman and former board member of The Yurok Alliance CDFI, states that since its inception in 2006, this nonprofit lending institution of the Yurok Tribe has been committed to assisting budding entrepreneurs, usually one or two at a time.

However, their financial constraints have recently been alleviated. With a generous award of $1.4 million from the U.S. Treasury’s State Small Business Credit Initiative (SSBCI), the Native Community Development Financial Institution — also known as Native CDFI, based in Northern California, is no longer required to scrabble together funds to provide aid. Quite the opposite, this injection of funds will enable the loan fund to broaden its service offerings, according to Vanlandingham.

“This money is a huge asset for the Yurok Alliance CDFI. We don’t have to rub pennies together to help one or two people,” Vanlandingham said. “We’re going to be able to help multiple people and really watch the economy grow.”

In 2010, the State Small Business Credit Initiative (SSBCI), was initiated by the United States Treasury, earmarking $1.5 billion for state governments. This fund was designed to foster emerging entrepreneurs by providing them with increased access to credit. Under the provisions of the American Rescue Plan Act, the SSBCI’s funding was expanded from $1.5 billion to a whopping $10 billion. This expansion also allocated $500 million specifically for tribal use.

The Treasury has recently commenced the distribution of these funds. It has announced its initial round of awards, through which $73 million will be distributed amongst 39 tribal governments. In this inaugural round, a total of 15 awards have been handed out - the complete list of recipients is available on the Treasury’s website. These funds are intended to bolster tribal lending initiatives, providing support to Native American communities in their efforts to recover post-pandemic. It’s a response to a Treasury fact sheet which revealed a 40% drop in tribal business ownership in the initial stages of the COVID-19 outbreak.

“Far too often, entrepreneurs and small business owners with big plans and a vision for the future struggle simply because they lack the capital or financial services they need,” Vice President Kamala Harris said in a statement. “That is why we are making this historic investment, which will help Tribal communities grow their small businesses, create jobs, and strengthen our economy. President [Joe] Biden and I will continue to fight to make sure that all communities have the resources they need to thrive.”

Among the most substantial awards were $16 million granted to the Chickasaw Nation in Oklahoma, $7.8 million to the Rosebud Sioux Tribe in South Dakota, and a considerable $22 million to the Economic Development Corporation (EDC) of the Affiliated Tribes of Northwest Indians (ATNI.) The latter organization represents 25 member tribes spread across California, Oregon, Idaho, Washington, and Arizona.

Leonard Forsman, the chairman of the Suquamish tribe and the president of the Affiliated Tribes of Northwest Indians, expressed that the earmarked funds enabled tribes to participate in this highly competitive awards program. They didn’t have to vie with state governments for these resources, which made the process more inclusive.

“The set-aside is extremely important - it recognizes our sovereign nature,” Forsman said. “We look forward to this opportunity to invest more in entrepreneurship.”

According to chairperson Gina Kakaak, the Menominee Tribe of Wisconsin will oversee efforts to distribute its $2 million award through loans to small company owners seeking to expand.

“With the partnership and support of multiple economic development leaders in our community, the SSBCI will help foster new development,” Kakaak said. “We’re thankful for the award.”

Lynn Malerba, the U.S. Treasurer and lifelong chief of the Mohegan tribe, referred to the SSBCI as a “multiplier” in the context of aiding tribal communities. In her view, strengthening tribal economies with programs such as the SSBCI enables the Treasury to not only uplift the tribes but also enhance their neighboring communities. She shared this perspective during a press call on Monday.

“We know that tribes have been very creative about how they’ve leveraged their funds, and how they’ve utilized their funds. These are all multipliers — we know when our tribal communities do well, we know those other local communities do well,” Malerba said. “I do think this is going to be ongoing work, as we think about how we can support tribal governments.”

But beyond the “multiplier” is just independence and security, Vanlandingham said, which is what tribal governments like the Yurok have been pursuing for their members for years.

“We’ve tried to bolster independence. People wanted to work for themselves and be self-supportive and not rely on jobs that may not be there…and we wanted to keep money on the reservation and build services and infrastructure,” Vanlandingham said. “It’s hard to help people without capital, [so] this is huge. This was something that was much needed, and I cannot really express how impactful this is going to be for our membership in the years to come.”

The following is a release of Tribes who have been granted funding under the program:

The Affiliated Tribes of Northwest Indians Economic Development Corporation (ATNI-EDC), on behalf of 25 tribal governments, received approval for up to $21.9 million.

Chickasaw Nation – Approved for up to $16 million

Citizen Potawatomi Nation, Oklahoma - Approved for up to $8,066,643

Confederated Tribes of the Umatilla Indian Reservation - Approved for up to $869,823

Eastern Band of Cherokee Indians - Approved for up to $3.5 million

The Inupiat Community of the Arctic Slope - Approved for up to $2.9 million

Levelock Village - approved for up to $627,054

Menominee Indian Tribe of Wisconsin - Approved for up to $1.99 million

Ninilchik Village - Approved for up to $689,038

The Osage Nation - Approved for up to $5,092,326

Paskenta Band of Nomlaki Indians of California - Approved for up to $631,387

Redding Rancheria, California - Approved for up to $639,552

Rosebud Sioux Tribe, South Dakota - Approved for up to $7.8 million

Washoe Tribe of Nevada and California - Approved for up to $724,528

Yurok Tribe of the Yurok Reservation, California - Approved for up to $1,406,081