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U.S. Department of the Treasury

State Small Business Credit Initiative

Summary of May 27, 2021 Tribal Consultation 

Overview 

The American Rescue Plan Act of 2021 (ARPA) reauthorizes and amends the Small Business Jobs Act 

of 2010 (SBJA), which established the State Small Business Credit Initiative (SSBCI) Program. ARPA 

provides a $500 million SSBCI capital allocation for Tribal governments to help address the economic 

fallout of the pandemic and lay the foundation for a strong and equitable recovery by providing direct 

support to Tribal governments for programs that increase access to credit for small businesses. 

The addition of Tribal governments represents a significant expansion of the number of eligible 

jurisdictions to receive SSBCI funds. Tribal governments are expected to use their allocated funds to 

facilitate capital access programs, provide collateral support, facilitate loan participations, or enable 

credit guarantee or other credit support programs to support small business lending and investment. In 

accordance with Treasury’s Tribal consultation policy, Treasury solicited letters and held an information 

session on May 13, 2021, and a consultation on May 27, 2021, to gather perspectives from Tribal 

leaders on allocation methodologies, and whether tribally owned businesses would be eligible for the 

program. More than 200 attendees from all regions of the country joined the consultation. 

Tribal nations in the United States operate as sovereign nations with vastly different structures, 

economies, and populations. The feedback delivered by 20 Tribal leaders during these consultations,

alongside nine letters from Indian Country, reflect this diversity. Treasury appreciates the many 

perspectives brought to the consultation. 

Feedback from Tribal Leaders 

Allocation Methodology

Several commenters requested minimum allocations to make sure that Tribes could have sufficient 

allocations to operate an SSBCI capital program. Several requested both $250,000 and $500,000 

minimum allocations. Additionally, some commenters expressed concerns about the funding tranches, 

especially given how small some of the Tribal allocations could be. 

Tribes strongly supported use of enrollment as a factor in an allocation methodology. Some Tribes also 

cautioned against use of employment and explained that it did not necessarily correlate with small 

business need as Tribes with a strong small business economy may have limited Tribal enterprise 

employment.

Several commenters asked for reallocations of unclaimed funds after the Notice of Intent to Apply 

deadline and after the December 11, 2021, program application deadline.
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Use of Funds

Commenters emphasized the importance of SSBCI program eligibility for tribally chartered and tribally 

owned businesses, both as eligible borrowers/investees and potential SSBCI program administrators. 

Tribal leaders highlighted that they would have difficulty adopting the program without this flexibility 

and explained that Tribal enterprises benefit not only Tribal members, but broader communities and 

non-members. Most Tribal leaders expressed interest in supporting both businesses owned by the Tribe 

and businesses owned by Tribal members. Commenters asked that businesses with organizational ties to 

gaming not be excluded from SSBCI investments if they engage in non-gaming business because Tribal 

small businesses are typically affiliated with a gaming enterprise. 

Commenters also requested that SSBCI include Tribal flexibilities in other federal programs, including 

the Small Business Administration 8(a) businesses and federally guaranteed loan programs. Support for 

Tribal development of 8(a) businesses was also highlighted as a goal of some Tribes. 

On the question of geographic eligibility for Tribal SSBCI, commenters expressed a range of interests. 

Some Tribes wanted to focus primarily on Tribal lands. However, others noted that there are different 

definitions of Tribal lands and requested that Treasury adopt the broadest version if Tribal lands were to 

be used in any allocation methodology. Other Tribes, highlighted, however, that many Tribes lack land 

bases for any number of historical reasons and explained that SSBCI would not be a workable program 

if they were restricted to Tribal lands that did not exist. These Tribes expressed interest in using funds to 

support members and non-members both on and off Tribal lands.

Commenters expressed concern about the private leverage ratio requirements and highlighted that many 

private sector lenders may exclude Tribes from their lending portfolios. Tribes requested that they be 

able to use federal funds or Tribal funds for this match. Tribes also highlighted that the 10:1 leverage 

ratio was particularly challenging for Tribes due to severe access to capital constraints, particularly for 

rural Tribes. 

Some commenters requested that real estate purchases that add to the general welfare of a Tribe, as well 

as construction, be eligible uses for SSBCI funds because many Indian Country businesses lack 

storefronts. 

Commenters requested that Tribes and Tribal members should be presumed to be socially and 

economically disadvantaged for purposes of the SSBCI program. 

Commenters also pointed out that strict conflict of interest policies would be challenging in small Tribal 

communities that have small workforces and where individuals may take on multiple roles in Tribal 

governments and economies. Commenters also noted that SSBCI guidance should reflect the fact that 

many Tribal communities have informal economies and unregistered businesses, including Tribes with 

treaty fishing rights.

Commenters requested that Tribes be able to combine their allocations through joint applications and 

consortia, but highlighted that guidance was needed on obtaining the appropriate approvals from 

participating Tribes. 
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Administrative Costs

Commentators also requested that administrative requirements be minimized and explained that Tribal 

staff have been stretched not only by the pandemic but also by the large number of federal programs 

rolled out in response to the pandemic. Commenters said that the statutory administrative allowance 

would be a challenge for Tribes because it is relatively low. In general, commenters asked that Treasury 

keep certification and reporting requirements as simple as possible with respect to determination that an 

organization has sufficient commercial lending experience, financial and managerial capacity, and 

operational skills for SSBCI programs.

Technical Assistance 

Commenters asked for flexibility in the use of technical assistance and for Tribal government eligibility 

for technical assistance. Commenters expect Indian County businesses, Tribal governments, and lenders 

that lack Indian Country experience to need technical assistance for successful SSBCI implementation, 

pointing out that lack of lender knowledge and comfort with Tribal economies is a contributing factor in 

access to capital barriers for Tribes and individual Native Americans. Commenters advised that a wide 

variety of technical assistance is needed for businesses, including assistance with internet services and 

information technology, grant applications, business plans, legal issues, security, vendors, marketing, 

budgeting, pricing and product competitiveness, hiring, software purchases, accounting, inventory, 

stocking, financial data, filing systems, and business education.