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PRESS
RELEASE CRST Public Relations
8/23/04
Martha R. Garreau
Native
Americans and Economic Development
Interest
in entrepreneurship amongst Native Americans is
increasing. However, Tribal members find it difficult
to get the financing they need to get their visions
up and running. Tribal leaders recognize the need
to develop working programs and relationships with
financial institutions that benefit the Native entrepreneur.
In order to address the many issues regarding Economic
Development, United Sioux Tribes of South Dakota
hosted a conference in Aberdeen, SD on the 16th
and 17th of August, 2004, bringing together representatives
from Tribes in the Great Plains Region along with
officials from Indian Affairs, SBA, and FSA. Keith
Jewett, with NAPC stated, “We have people
here looking for answers within the Bureau of Indian
Affairs,” he also commended the Tribal leaders
for taking a stand. Senator Tim Johnson of SD fully
supports Native American Tribes promoting business
developments and instigated four legislative efforts
that also may prove helpful. The gathering allowed
for discussion on Tribal needs and strategies to
develop economic development within their communities.
Ray Brown, with the Office of Economic Development
in Washington, D.C., spoke for Dave Anderson, Assistant
Secretary for Indian Affairs. “The absence
of Dave Anderson, goes to show the lack of respect
he has for our people,” stated Chairman Harold
Frazier of the Cheyenne River Sioux Tribe. Mr. Brown,
at times was at a loss for words as his explanations
never quite satisfied many of the concerns voiced
by his audience. One question that continuously
resounded was, “How does the BIA define Economic
Development?” For Tribal leaders there is
no question, that the lack of quality roads, buildings,
and access to basic needs improving infrastructure
within reservation communities is economic development.
“It’s all related, one thing affects
another,” said President John Steele, of the
Oglala Nation. “It means a lot more than creating
jobs,” added Manaja Hill, with Standing Rock
Sioux Tribe’s Economic Development Office.
Bill Benjamin, BIA Director for the Great Plains
Regional Office spoke with more assurance in agreeing
that Economic Development is much more than what
the BIA has done in the past. “I really believe
in self-determination and that the best decisions
are made by local people,” said Benjamin.
The Indian Finance Act (IFA) of 1974 policy declared;
“to provide capital on a reimbursable basis
to help develop and utilize Indian resources; and
they will enjoy a standard of living from their
own productive efforts comparable to that enjoyed
by non-Indians in neighboring communities.”
Originally the IFA consisted of five programs. Over
the years three of those have been cut from the
BIA budget, making it harder for Native entrepreneurs
to attain financial support.
Tribal leaders agreed that Tribal members seeking
to form small businesses benefited from those programs
that were cut and would like to see them reintroduced.
As a result, Chairman Frazier was appointed to Chair
a task force that would to look into the IFA. The
group will work to compile information that would
support funding for those programs. Once supporting
documents are gathered the task force will then
take their findings to respective congressional
representatives. Stacey Johnson with the Aberdeen
Area Office acknowledged that it’s going to
take Tribal leaders to get involved to turn things
around.
Robert McLaughlin, a Financial and Economic Consultant
researched the success of Tribally-owned, small
business ventures that utilized the equity grant
program, which is one of the programs that was cut
from the IFA. The resulting assessment of the Aberdeen
Area Office of Indian Business Development Grant
Program (IBDGP) found that the process to attain
financing was rigorous but once completed, Native
business owners had an astounding 89% success rate.
Mr. McLaughlin feels this was the most successful
financing program within the BIA. This very powerful
documentation will help support the need to reintroduce
those programs into the IFA.
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