News Summary
The National American Financial Organizations Association (NAFOA) is alarmed by a potential U.S. Treasury deadline change that threatens small business funding for tribal governments. The proposal to move the expenditure deadline for the SSBCI from October 2026 to November 2025 could significantly impact over $523 million allocated for 235 tribal governments as part of the American Rescue Plan. NAFOA emphasizes the importance of retaining the original deadline to ensure tribes have adequate time to access and deploy much-needed funds to support Native-owned businesses.
Washington, D.C. – The National American Financial Organizations Association (NAFOA) has raised alarms over a proposed deadline change by the U.S. Treasury that threatens to hamper small business funding for tribal governments. The Treasury is considering moving the expenditure deadline for tribal participants in the State Small Business Credit Initiative (SSBCI) from October 2026 to November 2025, effectively shortening the window for tribes to utilize allocated federal funds for small business lending by nearly one year.
This potential change impacts over $523 million in SSBCI capital designated for 235 tribal governments as part of the 2021 American Rescue Plan. With 48 of NAFOA’s 185 member tribes having received close to $369 million in SSBCI funding, the ramifications of the proposed revision could be significant.
NAFOA’s President Rodney Butler has indicated that an accelerated deadline poses “severe consequences” for both tribal governments and Native-owned businesses. This urgency is compounded by the fact that most tribal entities only began accessing their initial SSBCI funding tranches in fall 2023, which has limited their deployment capacity to utilize a significant portion of these funds.
Currently, many of the tribes involved have only expended about 20% to 30% of their funding as they work to develop lending systems and identify suitable businesses that would benefit from these financial resources. The SSBCI program, which was instituted in response to the financial crisis of 2010, allows tribal governments flexibility in tailoring their lending initiatives through collaborations with financial institutions.
NAFOA cautions that any premature recapturing of these funds could detrimentally impact tribal governments, Native Community Development Financial Institutions (CDFIs), and Native-owned businesses that play a crucial role in the economic development of their communities. The organization has called upon tribal leaders and stakeholders to advocate for retaining the original October 2026 deadline to ensure adequate time for fund deployment.
Additionally, the urgency surrounding this proposed deadline alteration is intensified by the ongoing uncertainties faced by CDFIs serving Native communities amid a government shutdown, further complicating matters for accessing crucial funding.
NAFOA highlights the vital importance of capital access programs in promoting economic growth within Indian Country. As tribal leaders gear up to navigate these emerging challenges, there is a growing call for heightened transparency and accountability in the management of tribal resources.
This proposed alteration to the SSBCI deadline may complicate the already intricate task of fostering sustainable economic development through effective funding mechanisms. As the situation develops, the need for comprehensive solutions and support for tribal governments aligns with aspirations for greater prosperity across Native communities.
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Additional Resources
- Tribal Business News: NAFOA Warns Treasury is Considering Earlier SSBCI Tribal Deadline
- Wikipedia: State Small Business Credit Initiative
- Corvallis Advocate: They Lend Critical Capital to Northwest Tribes
- BuzzFeed News: Seminole, Oklahoma Black Freedmen and Vaccines
- News 5: Investigation into Financial Mismanagement at Louisiana Tribal Casino
- Encyclopedia Britannica: Tribal Government
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