SBA Launches New Grants for Native Businesses

U.S. Senator Tina Smith announced that Red Lake Nation and the Lower Sioux Indian Community will receive federal funding to support small business development in their communities.

Why it matters: This funding aims to remove barriers to obtaining necessary financing, fostering economic health and growth in Tribal communities.

The details:

• The funding comes through the Small Business Credit Initiative, reauthorized and expanded by the American Rescue Plan.
• Native-owned small businesses often face disproportionate obstacles when trying to secure capital, especially in rural areas like Red Lake and Lower Sioux.
• Red Lake Nation will allocate $3,347,495 for two programs: a loan guarantee program and an equity funds program.
• The loan guarantee program will provide credit support for Tribal-owned and member-owned construction companies to obtain surety bonds needed to compete for large construction projects.

What they’re saying:

• “Access to capital is essential to the economic health and growth of Tribal communities in Minnesota and across Indian Country,” said Senator Smith.
• “The SSBCI allocation is an important steppingstone for meaningful economic development on the Red Lake Nation,” said Jake Robinson, Chief Development Officer of Red Lake, Inc.
• “Lower Sioux Indian Community is appreciative of federal funding through the Small Business Administration. It will go towards strengthening and diversifying our economy,” said Robert L. Larsen, Council President of the Lower Sioux Indian Community.

The SBA is also accepting applications for multiple grants that award up to $240,000 each to Native American-owned small businesses located near or on Tribal lands.

What’s next: This federal investment aims to provide much-needed support to small businesses within these Tribal communities, ensuring they have the resources necessary to succeed and thrive.

Full story

The U.S. Small Business Administration (SBA) is now accepting applications for a new grant program aimed at supporting Native American-owned small businesses. The grants, which can award up to $240,000 each, are available to eligible organizations located near or on Tribal lands. SBA Administrator Isabel Casillas Guzman emphasized the importance of these grants, stating, “The more than 341,000 Native American-owned small businesses can help us lift communities and power U.S. global competitiveness for a brighter future for us all.”

This new funding opportunity comes on the heels of an announcement by U.S. Senator Tina Smith (D-MN) that 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 funding, which comes through the Small Business Credit Initiative, is designed to remove barriers to obtaining necessary financing and foster economic health and growth in Tribal communities. “Access to capital is essential to the economic health and growth of Tribal communities in Minnesota and across Indian Country,” said Senator Smith.

Supporting Native American business growth

“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.”

According to the Treasury Department, Red Lake Nation will allocate $3,347,495 for two programs administered by Red Lake, Inc., a wholly-owned, Tribally-chartered company: a loan guarantee program and an equity funds program. The loan 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 offer affordable access to capital for Tribal small businesses and allow for Tribal participation in equity financing opportunities.

Robert L. Larsen, Council President of the Lower Sioux Indian Community, expressed appreciation for the funding, stating, “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.”

The deadline for submitting applications for the SBA’s new grant program is July 31. These federal investments aim to provide much-needed support to Native American-owned small businesses, ensuring they have the resources necessary to succeed and thrive, ultimately contributing to the economic growth and well-being of Tribal communities across the country.