A Native Community Development Financial Institution
The CDFI Fund supports specialized financial institutions, known as CDFIs, that serve Native American communities by providing funding, resources, and technical assistance to promote economic development and financial services access.
Native American Capital is a financial intermediary that facilitates economic development and financial services between the federal government and Native American tribes. This project overview analysis aims to provide a comprehensive understanding of Native American Capital’s background, investment activities, and its collaboration with Native Community Development Financial Institutions (CDFIs) for the benefit of Native American communities. By collaborating with a Native CDFI, focusing on homegrown institutions, and supporting impactful investments like the collaboration with the Lower Brule Sioux Tribe, Native American Capital contributes to the economic development and self-sufficiency of Native American communities. This comprehensive approach ensures that financial services and resources are effectively channeled to address the unique challenges and opportunities within these communities, fostering long-term prosperity and empowerment.
Native American Capital serves as a crucial link between the federal government and Native American tribes, facilitating financial intermediation to support economic development within tribal communities. By leveraging its expertise and relationships, Native American Capital helps tribes access funding, grants, and investment opportunities provided by the federal government. This financial intermediation is vital for tribes to overcome barriers and address economic challenges, enabling them to pursue sustainable growth and prosperity.
Native American Capital has established a strategic partnership with Native CDFIs, particularly through its collaboration with Native American Development Corporation in Montana (NADC) and Lower Brule Community Development Enterprise in South Dakota (LBCDE). CDFIs are “community development financial institutions” which are certified by the US Department of the Treasury to serve low-income communities, including Native American communities. Native CDFIs play a vital role in promoting economic self-sufficiency and financial inclusion for Native American Tribes throughout Indian Country and Native American Capital has played a leading role in bringing these important Native organizations to the forefront of consideration by both Federal executive agencies and the US Congress. Native American Capital recognizes the importance of CDFIs in driving economic empowerment and believes in their potential to spur sustainable development. By working closely with Native CDFIs, Native American Capital aims to enhance financial services and opportunities specifically tailored to the needs of Native American communities.
NAC has been the principal fundraiser for LBCDE’s business development assistance to Lower Brule Corporation
This program was established to attract private investment capital to economically distressed areas and encourage economic growth and job creation.
NAC collaborations with the Native American Development Corporation, the Lower Brule Community Development Enterprise, and Lower Brule Corporation.
Native American Capital has been instrumental in utilizing the NMTC program to generate investment fee income for Native CDFIs. While the NMTC Program, administered by the CDFI Fund, was established to attract private investment capital into economically distressed communities across the United States—including tribal lands— it is generally conceded by both the Federal Government and NMTC Industry practitioners, that Indian Country remains far behind non-Native American communities in attracting this important source of capital.
There are multiple, complex reasons for this wide gap and NAC has been one of the few Native practitioners to successfully win NMTC allocations for a Native CDFI, both in the Federal and State programs. Native American Capital’s success in gaining a unique Native CDFI foothold in the highly competitive NMTC competition underscores NAC’s commitment of promoting sustainable development and empowerment within Native American communities. To date, NAC has earned over $1.2 million in fee income for its Native CDFI client(s) through the placement of NMTC in low income communities throughout the US—including several landmark Indian Country-based projects.
NAC has served as the principal advisor to and fund raiser for Lower Brule Community Development Enterprise (LBCDE) since 2012. In that capacity, NAC has raised about $1.5M in grant support for LBCDE’s business development assistance to Lower Brule Corporation (LBC) which has used the support to finance several subsidiary startups consisting of a downpayment assistance program to enable low-income residents to qualify for Federal mortgages; a property maintenance company; a federal contractor providing temporary staffing to various Federal agencies.
NAC has served as a business advisor and financial consultant to NADC continuously since 2006, providing NADC assistance with numerous projects. Two current project highlight NAC’s significant contribution to NADC’s growth and development as a premier Native CDFI known throughout Indian Country for its significant accomplishments. First, NAC originated a “small tribes’ SSBCI Consortium project” with NADC serving as the Consortium manager. The “SSBCI Program,” or “State Small Business Credit Initiative,” is a US Department of the Treasury initiative that provides capital funding to states and Federally recognized Indian Tribes to grow small business investment vehicles in low income communities, including Native American tribes. NAC conceived and coordinated a seven tribe consortium comprised of smaller tribes throughout Indian Country, brought NADC into the Consortium as Project Manager, and then played a leading role in assisting NADC submit a winning application to Treasury.
Through its relationship with NADC, NAC has been a convening participant in a Tribal Renewable Energy Advisory Group that is assisting a Fortune 500 energy company reach out to tribes in support of the tribes’ development of renewal energy projects.
Native American Capital and its principals have an active history as advocates for Indian country in the legislative, business, and academic spheres.
NAC has direct experience winning and distributing New Market Tax Credits (NMTC) to bring technology and light manufacturing jobs into Indian Country.
Currently NAC is involved in the Department of Commerce sponsored program to identify and close communication and broadband gaps in rural Indian Country.
NAC has raised capital for Indian Country through federal housing funding, as well as corporate funding through private placement as well as provided technical support to tribes and various organizations.
The CDFI Program supports Native CDFIs, which serve Native American tribes by providing tailored financial services. Through the program, Native CDFIs gain access to funding and resources to promote economic self-sufficiency, create jobs, develop affordable housing, and support small businesses. They act as intermediaries between the federal government and Native tribes, facilitating the flow of capital and investments. This collaboration fosters long-term prosperity, economic development, and financial inclusion for Native American communities throughout Indian Country.
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