Jul 23, 2024 | By: Lakeland News

Red Lake to Receive Over $3 Million for Small Business Development

Red Lake Nation will receive more than $3 million from the federal Small Business Credit Initiative, which was reauthorized and expanded by the American Rescue Plan.

U.S. Senator Tina Smith of Minnesota made the announcement today. In a press release, she says the funding will be used to help small businesses access credit, which can be difficult in Indian Country.

Smith says tribal communities are systematically under-banked, making it nearly impossible for small businesses to obtain the financing they need to grow. Tribal governments can remove these barriers by working directly with businesses in their communities.

According to the Treasury Department, Red Lake Nation will use $3,347,495 for two programs administered by Red Lake, Inc., a wholly-owned, tribally-chartered company. These consist of one loan guarantee program and one equity funds program.

The guarantee program will provide credit support for tribal-owned and member-owned construction companies to obtain the surety bonds needed to compete for large construction projects, including federal construction contracts. The equity funds program will provide affordable access to capital for tribal small businesses and allow for tribal participation in equity financing opportunities.

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