Red Lake Nation and Lower Sioux Indian Community to receive federal funding; support small business development
MINNEAPOLIS — Red Lake Nation and Lower Sioux Indian Community will receive federal funding to support small business development in their communities.
Sen. Tina Smith made the announcement on Tuesday morning.
"Access to capital is essential to the economic health and growth of Tribal communities in Minnesota and across Indian Country," said Smith. "Native-owned small businesses face disproportionate obstacles when trying to secure capital to develop and grow their businesses, especially in rural areas like Red Lake and Lower Sioux. Tribes know best what works for their communities, and this funding will help Tribal economies to grow and thrive."
The funding was awarded through the Small Business Credit Initiative.
The Red Lake Nation will use over $3.3 million for two programs — a loan guarantee program and an equity funds program — according to the U.S. Treasury Department.
The loan guarantee program will provide credit for Tribal-owned and member-owned construction companies while the equity funds program will provide affordable access to capital for Tribal small businesses.
"Lower Sioux Indian Community is appreciative of federal funding through the Small Business Administration," said Robert L. Larsen, council president for the Lower Sioux Indian Community. "It will go towards strengthening and diversifying our economy as we plan to offer business and financial skills training, one-on-one technical assistance in business plan development and various support services to assist with business start and growth, including small business loans."
