The U.S. Department of the Treasury approved up to $83 million in State Small Business Credit Initiative (SSBCI) funds to be awarded to a consortium of 125 Alaska Tribes.
The investment supports the nation’s largest Tribal SSBCI consortium and will help enable small, remote, and capacity-constrained Tribes to access federal funding. Through the consortium, 125 Tribes will access economic development resources.
The funding will be administered on behalf of the Tribal consortium by the Alaska Small Business Development Center (Alaska SBDC) within the University of Alaska Anchorage (UAA) Business Enterprise Institute (BEI).
“Today’s announcement reflects success that is only possible when federal agencies listen to Tribal Nations to understand their unique needs and incorporate their feedback in developing program policy and guidance,” U.S. Treasurer Chief Lynn Malerba said. “Through the flexibility of the consortium model, these Tribes will benefit from the historic opportunity that these resources for small businesses presents to Indian Country. These funds will serve some of the most rural populations in the United States, creating jobs and expanding capital access for Tribes across Alaska.”
The Alaska SSBCI Tribal Consortium offers four programs, approved to receive up to $83.1 million. The four programs include a Loan Participation Program, a Loan Guarantee Program, a Collateral Support Program, and an Equity/Venture Capital Funds Program.
“Our Tribe is looking forward to the transformational impact this funding can have on the Tribal economy of Alaska. Rural Alaska is entrepreneurial. Our SSBCI consortium will address capital access barriers and unlock private financing for all of our small businesses that are ready to grow,” Rena Greene, deputy director and acting executive director of Nome Eskimo Community, one of the 125 consortium member Tribes, said.
The Loan Participation and Loan Guarantee Programs are allocated $10.3 and $37.9 million respectively, while the Collateral Support program allocated $12 million, and the equity/venture capital program allocated $22.9 million.
“Alaska’s tribes are the backbone of our rural economies. The Alaska SBDC is proud to have worked with the Alaska Federation of Natives to bring 125 Alaskan tribes together in the largest tribal consortium in the nation,” Alaska SBDC State Director Jon Bittner said. “This collaborative effort over the last two years will result in hundreds of millions of dollars in private sector loans and equity investments flowing into rural and Alaska Native-owned businesses, drastically changing the economic landscape of some of the most remote communities in the nation.”