Small businesses are the backbone of the economy, employing half the private sector workers and growing the economy middle-out and bottom-up in every corner of the United States, including Indian Country. However, tribal communities and Indigenous-owned SMEs have been disproportionately hit by the pandemic, with the number of Indigenous-owned SMEs dropping by about 40% in the immediate aftermath of the pandemic.¹

Today, the Biden-Harris administration announced approval of the first 15 Tribal State Small Business Credit Initiative (SSBCI) awards for tribal governments funded by the American Rescue Plan to support tribal businesses and small business owners provide $73 million to 39 tribal governments to As part of President Biden’s investment plan for the United States. These are his first ever SSBCI awards given directly to a tribal government. The announcement coincides with the start of President Biden’s second investment tour of the United States, which will see President Biden, Vice President Harris, First Lady Jill Biden, and leaders in the administration fan out across the country for three weeks. It will expand and highlight across the United States. Investments in manufacturing, infrastructure and cost reductions in communities across the country driven by President Biden’s economic policies.

President Biden’s America Relief Plan (ARP) included for the first time more than $500 million in SSBCI aid secured and requested by tribal governments. This is the first time dedicated and direct support for tribal governments has been incorporated into the State Small Business Credit Initiative (SSBCI) program, which enables investment in tribal businesses and small businesses. Investments like SSBCI ensure that all Americans, including historically underserved tribal communities, will benefit from the record small business growth taking place under President Biden’s leadership. helps ensure that The SSBCI Awards announced today will not only benefit tribal communities and Indigenous entrepreneurs, but will also create significant employment and economic opportunities for workers and businesses in surrounding areas. ARP’s historic reauthorization and expansion of SSBCI (more than six times the program’s original 2010 allocation) will help 100,000 small businesses and generate tens of billions of dollars nationwide in 10 years. It is expected to bring in new SME financing. .

“Small businesses are the backbone of our economy. ‘, said Vice President Harris. “Too often, entrepreneurs and small business owners with big plans and visions for the future struggle simply because they lack the necessary capital and financial services. In making this historic investment that will help small businesses grow, create jobs and strengthen economies in tribal communities, President Biden and I will ensure that all communities have the resources they need to thrive. I will keep fighting as long as I can.”

First-ever State Small Business Credit Initiative Tribal Awards Featured Today Include::

• $2 million to Menominee Indian Tribe, Wisconsin (MITW). MITW’s SSBCI program builds on the tribe’s lending experience to overcome barriers to access to capital in counties with poverty rates more than twice his state average. The SSBCI program partners with financiers, including the Wisconsin Native CDFI, to support small businesses owned by tribe members, chartered by the Menominee Tribe, or located on the Menominee Reservation.
• Joint application for $22 million to 25 tribal governments Northwestern Indian tribes Economic Development Corporation (ATNI-EDC). A native CDFI, ATNI-EDC runs his SSBCI program on behalf of 25 tribes across California, Oregon, Washington, Idaho and Arizona. Many of them are in rural areas with limited access to capital. This program supports the development of Native American entrepreneurs, tribal businesses, and tribal business credit ecosystems. Helping tribal governments form consortia to more effectively operate new credit initiatives at scale was a key outcome of tribal consultations in the design and management of these new SSBCI resources.
• $1.4 million to Yurok It is the largest entity in California and operates new lending participation programs, including partnerships with native tribal CDFIs. Alliance CDFI was established by the Yulok Tribal Government to address the lack of access to financial services in remote communities with high poverty rates. The program serves tribal businesses as well as small businesses owned by tribe members.

To view the full list of SSBCI Awards recognized by the Tribes, click here. here.

Today’s announcement is based on the policy of the Biden Harris administration. historical support Rehabilitate, expand economic opportunities and provide better access to capital for indigenous and tribal communities, including:

• Launched Federal Initiative on Access to Capital in India – A multi-agency strategy to improve awareness, access, and utilization of federally funded resources for tribal governments, tribal businesses, indigenous entrepreneurs, and indigenous community development finance institutions (CDFIs).
• Largest ever federal capital injection into Indigenous CDFIs through Emergency Capital Investment, Rapid Response, Equitable Recovery Program Announced by Vice President Harris. The Treasury has invested $234 million in local-owned and local-majority-owned custodians through the Emergency Capital Investment Program (ECIP). Based on preliminary analysis, the Treasury estimates that his nationwide ECIP investment could increase lending to indigenous communities by up to nearly $7 billion over the next decade. In addition, the CDFI Rapid Response Program has provided over $55 million in immediate assistance to Indigenous communities affected by the COVID-19 pandemic, and the Equitable Recovery Program will provide 30 Indigenous CDFIs with $4,600 in April 2023. $1,000,000 to strengthen the capacity of these institutions to help low-income people. – Middle-income Indigenous communities recovering from the COVID-19 pandemic and investing in long-term prosperity.
• Winner of the $45M Build Back Better Regional Challenge (BBB-RC) Grants to the Mountain Plains Regional Indigenous CDFI Coalition Grow the native financial sector and expand economic opportunities in Native American communities in Montana, North Dakota, South Dakota, and Wyoming. The investment will provide financial investment to Indigenous businesses and entrepreneurs, strengthen locally-led financing infrastructure, and drive business development and job creation, stripping away decades of historic investment by Indigenous communities. and help reverse institutionalized inequalities. The BBB-RC Award marks him one of more than 120 economic development grants (totaling nearly $500 million) awarded by the Department of Commerce to projects that utilize his ARP funds to serve Indigenous communities. It’s not too much.

• I will provide a Largest ever federal direct investment in Indian country through the American Rescue Plan, will provide more than $32 billion specifically allocated for tribal communities and indigenous peoples. This assistance includes a $20 billion Fiscal Consolidation Fund, which will be distributed rapidly and directly to 579 tribal governments in 2021 to stabilize pandemic-hit tribal economies, and to meet the unique needs of their communities. I was able to react quickly and make the investments that I thought were the most valuable. – From investing in workforce development for the Mescalero Apache Tribe to supporting small ranchers for the Spirit Lake Tribe.
• The single largest dedicated investment in Tribal infrastructure. The bipartisan infrastructure law provides affordable high-speed internet, safer roads and bridges, modern sewage and sanitation systems, clean drinking water, reliable and affordable electricity, and high-income jobs for all tribal communities. We are making record investments to deliver The law provides over $13 billion in direct assistance to tribal communities, and tribes are entitled to apply for or request billions more in discretionary, official, and other funding. increase.
• Through the Inflationary Control Act (IRA), we support the most aggressive climate and clean energy efforts in American history.This includes over $720 million specifically for tribal and indigenous communities Planning and adapting to climate change, mitigating drought, supporting fisheries, and transitioning to clean energy production and use.

Challenges remain to ensure that all tribal communities achieve prosperity and resilience, but the Biden-Harris administration’s investment in Indian Country promises a strong recovery and a more promising economic future. We are working to make sure.

• American Indian and Alaska Native (AI/AN) Unemployment Rates at Record Low: In the first 12 months after the start of the pandemic, the AI/AN unemployment rate averaged over 12%. In February 2023, the 12-month average unemployment rate fell to 5.7%, the lowest level since 2000.
• Native American Child Poverty Rates at Record Low: Historic support to Native American families, including ARP’s 2021 child tax credit expansion, will cut AI/AN child poverty by more than half in 2021, reaching a record low.

[1] Calculations by Robert Fairley, Professor of Policy and Economics, University of California, Los Angeles, based on current census data.

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