Hearing of the Senate Indian Affairs Committee - Access to Capital in Indian Country

Hearing

"Today we will hear our witness's perspectives on how to improve access to capital and their experiences working with federal partners. As Chairman, I have made it a priority to focus on issues that will help Indian communities to prosper and to enjoy healthier lives.

"Fundamental to these goals is the need to build sustainable tribal economies and create jobs in Indian communities. Economic development and the capital necessary for that development are significant needs in Indian communities.

"Between 2006 and 2010, when the U.S. unemployment rate was just under eight percent, the average unemployment rate in Indian Country was nearly fifteen percent. Also the Wyoming American Indian unemployment rate from 2009-2011 was 67%.

"That development relies on capital to start, support, and maintain businesses of all sizes. Indian and tribally-owned businesses face unique challenges beyond those that non-Indian businesses, in general, face.

"For example, many tribes are located in remote areas, far away from transportation, distribution, or communication systems suitable for sustainable commerce.

"Individual Indians do not have as many small business owners when compared to other groups. For the most part, they also do not receive business or financial assistance from tribes. These businesses, however, tend to employ more people than other small business owners.

"In general, business capital is typically secured in the private sector, through banks, credit unions, and other individual groups. The Federal government's role has expanded to provide access to capital programs through various agencies in the form of loans, loan guarantees, and financial education.

"To attract investors, that role also includes promotion and marketing assistance and tax incentives.

"This Committee has received testimony at prior hearings relating to economic development that accessing capital is still quite problematic for Indian and tribal businesses.

"I am looking forward to today's hearing and from our witnesses on solutions to improve access to capital."

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