WASHINGTON – Three Oklahoma tribal nations will receive almost half the initial funding from a new small business initiative from the Biden-Harris Administration announced this week.
The Osage, Chickasaw and Citizen Potawatomi nations will receive small business funding from the American Rescue Plan, created by Congress to help the nation recover from the COVID-19 pandemic.
The White House said this is the first ever inclusion of dedicated, direct support to tribal governments and that investments like the State Small Business Credit Initiative will help to ensure that all Americans, including those in underserved tribal communities, will benefit.
“Small businesses are the backbone of our nation’s economy,” Vice President Kamala Harris said in the White House’s Monday announcement. “… 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. That’s why we are making this historic investment, which will help tribal communities grow their small businesses, create jobs, and strengthen our economy.”
The administration provided $73 million for the venture – with the Osage, Chickasaw and Citizen Potawatomi Nations receiving almost $30 million.
Cindy Logsden, Citizen Potawatomi Community Development Corporation’s CEO, said the funding will help many tribal small business owners with money needed to make investments into their businesses.
“It’s recognizing the tribes as equal to state entities and recognizing our sovereignty,” she said. “It means more dollars to the state of Oklahoma. Hopefully we are making more sustainable businesses and families at the end of the day.”
The Citizen Potawatomi Community Development Corporation will be receiving $8.066 million from the federal government. This will help them in the efforts to lend to more entrepreneurs, she said.
“It’s access to capital that otherwise – individuals, that Native family, that Native business – probably would not be able to (access),” Logsden said. “We do a lot more hand holding than a bank would do. We think outside of the box – if we don’t have enough collateral, ‘could we get the BIA (Bureau of Indian Affairs) insurance?’ Because we aren’t regulated like a bank is, we could be normal or creative in assisting Native Americans in getting access to capital.”
The Citizen Potawatamie have had a program that lends to small businesses for 20 years. Logsden said they’ve lent around $125 million to several small businesses.
The Osage Nation, which will receive $5.2 million, is just getting a lending program started. Candy Thomas, Director of Self-Governance and Strategic Planning, said they’re building two programs using this money to better help tribal small businesses.
They’re developing an equity fund alongside a capital fund program which is designed to loan money to small businesses with a focus on Osage people, but any Native American is eligible.
“We can’t just say it’s for Osages. We have a (Community Development Financial Institution) that’s being set up and we can’t specify a population in that like ‘just Osages,’” Thomas said. “That’s where we are. It’s been going on for a long-time and it keeps changing when they change the guide-lines and change the allocation amount.”
“It’s highly satisfying to know we are being recognized and able to provide these kinds of services to our population,” Thomas said. “Traditionally, Native Americans don’t have good credit scores. Banks would even turn them down because they’re Native American or they don’t have everything they’re looking for.
“We’re very excited about this and that it will work hand-inhand with our (Community Development Financial Institution),” she said.
Chickasaw Nation Governor Bill Anoatubby in a statement sent to Gaylord News said the tribe will split the $16 million it is receiving into two programs – a collateral support program, designed to provide funds for tribal members who might not have enough collateral to secure a loan, and a venture capital program.
“Access to capital is vital for small business success, and the Chickasaw Nation is grateful to be partnering with the U.S. Treasury,” Anoatubby said in the statement. “Delivering these vital programs to underserved small business owners is key to fulfilling the Chickasaw Nation’s mission to enhance the overall quality of life of the Chickasaw people.”
Gaylord News is a reporting project of the University of Oklahoma Gaylord College of Journalism and Mass Communication. For more stories by Gaylord News to GaylordNews.net.
