Treasury Awards $12.4 Million for Economic Development in Native Communities
More than $12.4 million will be pumped into Native communities through 35 organizations, which received monetary awards from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund), specifically, the Native American CDFI Assistance Program (NACA Program).
The funds will support economic and community development. The local, Native CDFIs and other award recipients (organizations looking to become or create Native CDFIs) all have a common goal: to increase lending and financial services in Native communities, stimulating economic development in some of the most distressed and low-income parts of the country.
“The Native American CDFI Assistance Program is providing critically needed funds for distressed Native and tribal areas, many of which lack traditional banking services,” said Don Graves, Treasury Deputy Assistant Secretary for Small Business, Community Development and Housing Policy. “This latest round of awards will expand the capacity of native financial institutions to develop innovative economic development solutions for the businesses and individuals in their communities.”
The awardees will receive a collective total of $12,451,015 in financial assistance and technical assistance awards. Eighteen Native CDFIs will receive financial assistance awards, which are primarily used for financing capital. Seventeen organizations will receive technical assistance grants, which are usually used to acquire products or services, staff training, professional services, or other support.
“The FY 2013 NACA Program awards will lead to increased loans for small businesses, affordable housing, and community facilities in Native Communities, in addition to basic financial services that are essential to building household wealth and stability,” said CDFI Fund Director Donna J. Gambrell. “As the award-making arm of the CDFI Fund’s Native Initiatives, the NACA Program has consistently supported the unique organizations that are doing such vital work in these communities.”
The majority of the target markets served by the awardees are rural, although seven organizations primarily serve minor urban areas. The organizations are headquartered in 15 different states across the country. Full information about the FY 2013 NACA Program awardees can be found in the CDFI Fund’s Searchable Award Database at www.cdfifund.gov/awards.
The FY 2013 NACA Program Awards announcement comes at a time when the CDFI Fund’s Native Initiatives is in the middle of studying the current availability of access to capital and credit in Native Communities. The “Access to Capital and Credit in Native Communities” study will draw on focus groups, tribal consultations, and independent research to establish the current reality of capital and credit availability in Native areas. The results of the study will be used to inform the CDFI Fund’s future approach to the training, technical assistance, and awards that it provides through the Native Initiatives.
Learn more about the “Access to Capital and Credit in Native Communities” study at www.cdfifund.gov/nativestudy. Additional information about the FY 2013 round of the NACA Program, including key highlights and the full award list, can be found below and at www.cdfifund.gov/native.