The U.S. Department of the Treasury has announced the approval of plans for up to $65 million in funding allocated to 18 Tribal governments under the American Rescue Plan’s State Small Business Credit Initiative (SSBCI). This initiative marks the largest one-time investment for Tribal governments in small business financing in U.S. history.
“Today’s announcement reinforces President Biden’s commitment to invest in small businesses and entrepreneurs,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “Providing help to entrepreneurs like accounting services and legal advice is critical to unlocking their potential for growth and to continuing the nation’s historic small business boom.”
Reauthorized and expanded by President Biden’s American Rescue Plan, SSBCI includes nearly $10 billion aimed at supporting small businesses and entrepreneurship across the United States. The program provides capital and technical assistance to promote stability, growth, and success among small businesses. Funds are distributed to states, the District of Columbia, territories, and Tribal governments for tailored programs offering equity/venture capital, loan participation, loan guarantees, collateral support, and capital access.
Five approved plans highlight how this funding will be utilized:
1. The Mesa Grande Band of Diegueño Mission Indians leads a consortium comprising six Tribal governments approved for up to $5,307,619. This consortium will operate an equity funds program targeting pre-seed, seed, and early-stage small businesses owned by consortium Tribes and their citizens. Sectors include technology and renewable energy.
2. The Oneida Nation has been approved for up to $3,839,291 to operate a loan participation program with Bay Bank serving as a source of companion loans. This program focuses on construction, transportation, and service industries.
3. The Red Lake Band of Chippewa Indians of Minnesota will receive up to $3,347,495 for two programs administered by Red Lake Inc.: a loan guarantee program providing credit support for construction companies seeking surety bonds for large projects; and an equity funds program offering affordable capital access targeting technology-enabled start-ups.
4. Saint Paul Island has been approved for up to $740,107 for an Equity/Venture Capital Direct program making a single direct equity investment in a new wholly Tribally-owned business that aims to provide services to federal government agencies.
Today’s announcement brings SSBCI Capital Program commitments to Tribal governments totaling $330 million across 93 Tribes with 58 applications already approved.
