WASHINGTON, DC – Today, U.S. Senator Tina Smith (D-Minn.) announced that the Red Lake Nation and the Lower Sioux Indian Community have been selected to receive federal funding to support small business development in their communities. The tribes will use the funding to help small businesses access credit, something that can be difficult in Indian Country. Tribal communities consistently suffer from a lack of banking services, making it nearly impossible for small businesses to obtain the financing they need to grow. Tribal governments can remove these barriers by working directly with businesses in their communities. The funding was awarded through the Small Business Credit Initiative, which was reauthorized and expanded by the American Rescue Plan, which Senator Smith supported.
“Access to capital is essential to the economic health and growth of tribal communities in Minnesota and throughout Indian Country.” said Senator Smith. “Native-owned small businesses face disproportionate obstacles when trying to secure capital to develop and grow their businesses, especially in rural areas like Red Lake and Lower Sioux. Tribes know best what works for their communities, and this funding will help tribal economies grow and thrive.”
“The SSBCI allocation is an important step toward meaningful economic development for the Red Lake Nation. Breaking down barriers surrounding access to capital for tribal and member-owned businesses to equitably participate in opportunities that have historically been unavailable in Indian Country is a transformational change. An investment like SSBCI will help the Red Lake Nation achieve a vision of economic independence, as well as continue to drive growth in our tribal economy that also benefits rural communities across Minnesota. This change would not be possible without the advocacy and efforts of Senator Smith and Senator Klobuchar.” said Jake Robinson, director of development for Red Lake, Inc.
“The Lower Sioux Indian Community appreciates federal funding through the Small Business Administration,” said Robert L. Larsen, president of the Lower Sioux Indian Community Council. “This will go towards strengthening and diversifying our economy as we plan to offer business and financial skills training, tailored technical assistance in developing business plans, and various support services to help with starting and growing businesses, including small business loans.”
According to the Treasury Department, Red Lake Nation will use $3,347,495 for two programs administered by Red Lake, Inc., a wholly owned and incorporated tribal enterprise: a loan guarantee program and a capital fund program. The guarantee program will provide credit support to tribally and member-owned construction businesses to obtain the bonds necessary to compete for large construction projects, including federal construction contracts. The capital fund program will provide affordable access to capital for tribal small businesses and allow for tribal participation in capital financing opportunities.
###