Red Lake Nation to receive $3.3 million for small business development
WASHINGTON, D.C. —
U.S. Sen. Tina Smith
recently announced federal funding to be awarded to
Red Lake Nation
and the Lower Sioux Indian Community for small business development.
According to a release, the funding was given through the Small Business Credit Initiative, which was reauthorized and expanded by the American Rescue Plan. The tribes will use the funding to help small businesses access credit.
“Access to capital is essential to the economic health and growth of tribal communities in Minnesota and across Indian Country,” Smith said. “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.”
According to the Treasury Department, Red Lake Nation will use $3.3 million for two programs administered by Red Lake, Inc. including a loan guarantee program and an 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, the release added.
“This investment 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,” Red Lake Inc. CDO Jake Robinson said. “This change would not be possible without the advocacy and efforts of Sen. Smith and Sen. Klobuchar.”
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