WASHINGTON, DC – Today, U.S. Senator Tina Smith (D-MN) announced Red Lake Nation and Lower Sioux Indian Community were 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, which can be difficult in Indian Country. Tribal communities are systemically under-banked, 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 across 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 to grow and thrive.”
“The SSBCI allocation is an important steppingstone for meaningful economic development on the Red Lake Nation. Breaking down barriers surrounding capital access for Tribal and member owned businesses to equitably participate in opportunities that have historically been unavailable in Indian Country is a transformative change. An investment like SSBCI will help the Red Lake Nation achieve a vision of economic independence as well as continue to fuel the growth of 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, Chief Development Officer, Red Lake, Inc.
“Lower Sioux Indian Community is appreciative of federal funding through the Small Business Administration,” said Robert L. Larsen, Council President, Lower Sioux Indian Community. “It will go towards strengthening and diversifying our economy as we plan to offer business and financial skills training, one-on-one technical assistance in business plan development and various support services to assist with business start and growth, 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, Tribally-chartered company: one loan guarantee program and one equity funds program. The guarantee program will provide credit support for Tribal-owned and member-owned construction companies to obtain the surety bonds needed to compete for large construction projects, including Federal construction contracts. The equity funds program will provide affordable access to capital for Tribal small businesses and allow for Tribal participation in equity financing opportunities.
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