Volume 18 Spring 2007 Issue No. 3
In This Issue:
Building Prosperity
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RESOURCES
Accessing Capital, Building Prosperity
by Trond E. Jacobsen
INTRODUCTION
Within the last several decades Native peoples have enjoyed increasing success in building and managing wealth and creating economic opportunities as the foundation of their independence and self-determination. Despite their successes, too many tribes and Native entrepreneurs struggle to access capital, develop effective financial management plans, and design and implement successful business plans. Managing wealth also remains a challenge for many enterprises and families.
Described here are resources for accessing capital and building the entrepreneurial skills required to exploit opportunities and build family and community wealth. Included are website and contact information for the leading educational, professional, and advocacy organizations focused on tribal economic development and access to capital. Their collective mission is to assist tribal members in building wealth.
Described next are specific organizations helping Native people access capital or receive financial literacy education. Finally, a number of recently published reports, books, and articles about building tribal prosperity are described.
This resource guide complements another published in 1997 by the Tribal College Journal but includes only more recent resources. (See www.tribalcollegejournal.org/themag/backissues/winter97/winter97resource.html.)
These resources were collected from a number of academic databases, including ProQuest, ISI Web of Knowledge, ABI/Inform Business, Ethnic NewsWatch, Education Abstracts, and Sociological Abstracts. These searches were augmented with searches of the World Wide Web. Additional resources and organizational information were obtained at two recent national tribal finance conferences.
Three factors -- a proliferation of advocacy and assistance organizations, the increase in sources of available capital, and more financial training -- all point toward an economic renaissance. Wise economic planning and sound planning are essential to the future prosperity of American Indian families, businesses, governments, and nations.
WEBSITES
American Indian Business Leaders (AIBL)
AIBL is a membership organization with chapters across the western United States, including chapters at tribal colleges. AIBL sponsors the Native American Student Investor Program, and website visitors can take online financial literacy quizzes. Call toll free (877) 245-AIBL (2425).
American Indian Higher Education Consortium (AIHEC)
AIHEC has published a number of studies since 2000 demonstrating that tribal colleges stimulate local economic development, extend access to information technologies, and nurture new leaders for their communities. Call (703) 838-0400.
First Nations Development Institute
The institute combines education, advocacy, and capitalization to help restore Native control and management of assets and to build new assets for long-term community vitality. First Nations provides a large number of free, online publications in such areas as agriculture, banking and financial services, product development, taxes, financial education, nonprofit capacity building, predatory lending, and natural resource development. The institute also provides financial and technical resources for implementing culturally appropriate and sustainable asset development strategies. Call (303) 774-7836, or email info@firstnations.org.
First Nations Oweesta Corporation
Oweesta is chartered to help tribes and their members acquire, control, manage, and use their financial assets. Oweesta provides training and technical assistance in the development and growth of Native Community Development Financial Institutions (CDFIs). The website describes the services and offers a large collection of free, online documents designed to help tribes and their members build prosperity. Call (605) 342-3770, or email info@oweesta.org.
Native American Banking Resource Directory, Community Affairs Department, U. S. Department of Treasury
www.occ.treas.gov/cdd/Nativeam.htm
This online resource provides practical advice and links for all aspects of tribal economic development and tribal finance. The website provides links on many topics: forums, newsletters, guides, and issues related to financing and economic development; single-family lending; multi-family lending through the Department of Agriculture (USDA); Section 515, Low Income Housing Tax Credits, and Housing and Urban Development (HUD) programs; public facilities lending through the USDA Rural Utility Service and Rural Community Assistance Corp.; commercial lending; retail financial services; and financial literacy available from tribal colleges, nonprofits, federal agencies; and Native American financial institutions. This is a web-only resource.
Native American Community Development Corporation (NACDC)
The NACDC promotes financial literacy, home ownership, small business development, land recovery, Native farming and ranching, and banking in remote Native communities. It includes one of the more comprehensive online collections of financial literacy resources. Contact Elouise Cobell at (406) 338-2992, or email eccobell@3rivers.net.
Native American Finance Officers Association (NAFOA)
NAFOA is an organization of finance officers from tribal governments, organizations, and businesses. It supports sound financial and economic decision making, financial literacy training and technical assistance, legislation to improve tribal financial management, and the development of financial standards. Call (602) 532-6295, or email atirillo@cox.net.
Native American Business Alliance (NABA)
NABA is dedicated to building relationships between private and public Fortune 500 companies and Native businesses. Call (248) 988-9344, or email naba@n-a-b-a.org.
National Center for American Indian Enterprise Development (NCAIED)
NCAIED promotes the American Indian private sector and tribal employment by stimulating the success of Native-owned businesses. NCAIED sponsors the yearly Reservation Economic Summit and trade show. Contact CEO/President Kenneth Robbins at (480) 545-1298.
National Tribal Development Association (NTDA)
The NTDA provides economic development and governance services to American Indians. Contact Chief Executive Officer Billi Anne Raining Bird-Morsette at (406) 395-4095, or email info@ntda.info.
Office of Native American Affairs, U. S. Small Business Administration (SBA)
SBA provides resources tailored to the needs of small business owners, including a guide to Native American-owned businesses (www.sba.gov/naa/business.html). It also provides a comprehensive list of agency programs and resources and contact information for SBA’s Small Business and Women’s Business Centers. Call (202) 205-7364.
Tribalfinance.org
Funded by the National Science Foundation and the School of Information at the University of Michigan, tribalfinance.org collects, aggregates, and publishes original tribal finance research and provides links to tribal finance resources. Contact Dr. Gavin Clarkson (734) 763-2284, or email tribalfinance@umich.edu.
FUNDING FOR ENTREPRENEURS
See also Native American Banking Resource Directory website above.
American Indian Economic Development Fund (AIEDF)
Certified as a Community Development Financial Institution, AIEDF provides individualized, culturally relevant business education and technical assistance, connects entrepreneurs with funding sources, and provides gap loans to Minnesota, North Dakota, and South Dakota American Indians. See www.aiedfloans.org, call (651) 917-0819, or email info@aiedfloans.org.
Caputo, S. (2006, March). Commercial lending in Indian Country: Insights. Office of the Comptroller of the Currency, Department of the Treasury
This report is based on a survey of lending institutions, tribal advocacy groups, and economic development specialists. The brief report describes recent changes in market conditions, the Community Reinvestment Act's various tests, and regulatory changes making it easier to lend money to tribal members. It also includes descriptions of federal agencies working to encourage creditors to lend to tribal members. Download: www.occ.gov/cdd/CommLending.pdf.
Community Development Financial Institutions Fund and Native Communities Financing Initiative
The CDFI helps people access affordable credit and financial services. The Native Communities Financing Initiative offers training and technical assistance for creating tribal CDFI funds. See www.cdfifund.gov/what_we_do/nacd/communities_financing.asp, or contact Mamata (Mini) Datta at (215) 320-4343, or email MamataD@communitycapital.org.
National Farm Service Agency-NDTA Indian Credit Outreach Initiative
The agency helps Native American farmers and ranchers to obtain federal resources available to rural areas. See www.indiancreditoutreach.com or contact Mike Hill, Agency Director, Rm. 3720 South Ag. Bldg., Ag Stop 0511, 1400 and Independence Ave. SW, Washington, DC 20250-0539.
Native American Bank (NAB)
Federally chartered but owned by a corporation created by tribes and Alaska Native Corporations, NAB reinvests tribal resources in economic development for tribal independence. It offers both consumer and corporate accounts. See www.nabna.com/services.shtml, or call toll free (800) 307-9199 or (303) 988-2727.
FINANCIAL TRAINING PROGRAMS AND RESOURCES
Native Financial Education Coalition (NFEC)
The NFEC brings together local, regional, and national organizations and federal agencies to promote financial education in Native communities. Primary focus areas are personal financial skill-building, enhancing local capacity to provide financial education, sharing information, and promoting collaboration. It provides programs and tool kits for developing and funding financial education, promoting youth financial literacy, an introduction to basic adult financial literacy, and a large library of downloadable documents. See www.nfec.info, contact Elsie Meeks at (605) 342-3770, or email info@oweesta.org.
Falmouth Institute
The Falmouth Institute publishes the American Indian Report and provides a range of training and consulting services to tribal governments and their members for a fee. The training includes finance and gaming, among others. See www.falmouthinstitute.com, or call (800) 992-4489.
Family finances workbook: Building Native communities, financial skills for families. (2001). Washington, DC: First Nations Development Institute and Fannie Mae Foundation.
Divided into six sessions, this workbook proceeds step-by-step to develop the financial skills people need to enhance their prosperity. Sessions include building a healthy economy, making spending plans, managing checking and savings accounts, and understanding credit. Download online workbook: www.fanniemaefoundation.org/programs/native_american.shtml.
Tribal Chief Financial Officer Tool Kit
This is a free, online resource for tribal finance officers working in both the public and private sectors, with particular emphasis on legal compliance requirements. www.mossadams.com/industries/nfp/tribes/cfotoolkit.htm.
BOOKS/REPORTS
Cornell, S. and Kalt, J.P. (2005). Two approaches to economic development in American Indian nations: One works, the other doesn't. Joint Occasional Papers on Native Affairs No. 2005-02. Tucson, AZ: Native Nations Institute for Leadership, Management, and Policy.
This paper and many others on tribal economic development are available at www.jopna.net.
Cornell, S. and Kalt, J.P. (1992). What can tribes do? Strategies and institutions in American Indian economic development. Los Angeles: American Indian Studies Center, UCLA.
Cornell, S., Besaw, A., and Kalt, J.P. (forthcoming). What can tribes do? Volume II: Los Angeles: American Indian Studies Center, UCLA.
Cornell, S. and Kalt, J.P. (forthcoming). Constitutions, culture, and the wealth of nations: Economic development on American Indian reservations. Cambridge, MA: Harvard University Press.
Community Development Financial Institutions Fund. (2001). Report of the Native American lending study. Washington, DC: U. S. Department of the Treasury.
The study closely examines the legal, educational, and cultural barriers that tribes and entrepreneurs face and the consequences for tribal prosperity. Download: www.cdfifund.gov/docs/2001_nacta_lending_study.pdf.
Dauphinais, L. (2005). The success of Turtle Mountain Community College in higher education and community development (Doctoral dissertation, Walden University, 2005). Dissertation Abstracts International, A 66(07), 2632.
This study found that Turtle Mountain Community College is a positive reservation change agent by providing open access, successfully transferring students to 4-year institutions, collaborating with tribal businesses, and stimulating local economic development.
Guyette, S. (1996). Planning for balanced development: A guide for Native American and rural communities. Santa Fe, NM: Clear Light Publishers.
A community planner describes tested, culturally appropriate models for developing a strategic plan, conducting a needs assessment, enhancing community participation, supporting business and tourism, and locating funding for local development.
Hillabrant, W., et al. (2004). Overcoming challenges to business and economic development in Indian Country. MPR Reference No. 8550-931. Princeton, NJ: Mathematica Policy Research, Inc.
The authors examine business and economic development activities and the federal programs and initiatives utilized by a convenience sample of eight tribes and two Alaska Native corporations. They discuss the challenges tribes and tribal enterprises confront and the successful strategies some have deployed. Download: www.urban.org/UploadedPDF/411104_overcoming_challenges.pdf.
Hosmer, B. and O’Neill, C. (Eds.) (2004). Native pathways: American Indian culture and economic development in the 20th century. Boulder, CO: University of Colorado Press.
This edited book provides a comprehensive overview of both the history and recent lessons of American Indian economic development. It situates the efforts to achieve prosperity in the context of transferable lessons and connects the struggle for economic development with the struggle for survival.
Lansdowne, M.L. (2004). American Indian entrepreneurship: A complex web (Doctoral dissertation, Union Institute and University, 2004). Dissertation Abstracts International, A 65(12), 4635.
A survey of tribal entrepreneurs reveals their views of positive signs, remaining obstacles, and the systems and programs that merit additional support. The third primary finding is that “culturally sensitive entrepreneurship education” through tribal colleges enhances reservation-based entrepreneurship.
ARTICLES
Blanchard, R.A. (1997). Developing nation models for American Indian nation building: Educating the young leaders of our internal developing nations. The Social Science Journal, 34(4), 423-434.
Blanchard describes curriculum development at the University of New Mexico-Gallup to educate future tribal leaders and enhance their contributions to development.
Cornell, S. (2001). Enhancing rural leadership and institutions: What can we learn from American Indian nations? International Regional Science Review 24(1), 84–102.
Cornell examines four factors that predict economic development in Indian Country: local control, effective institutions, strategic thinking, and leadership. Leadership nurtured by education is among the strongest predictors of economic success.
Olson-Crawford, S. (1997). Resources on American Indian economic development. Tribal College Journal, 9(3).
This TCJ Resource Guide provides contact information for a wide range of tribal economic development organizations and an extensive bibliography of published research. See www.tribalcollegejournal.org/themag/backissues/winter97/winter97resource.html.
Schmidt, S., et al. (2006). Peer professional development for workforce development in Arizona: A grassroots capacity-building initiative. Performance Improvement, 45(3), 16-21.
The authors describe an Arizona program relying on local centers in rural areas, including one serving tribal populations, to promote workforce development and career building.
Trond E. Jacobsen is a doctoral student at the School of Information at the University of Michigan. He is a research assistant for the Tribal Finance Information Clearinghouse (www.tribalfinance.org) funded by the University of Michigan and the National Science Foundation.(Many of these resources were collected in preparation for a grant application to the Institute for Museum and Library Studies to develop a suite of online financial literacy tools.)