Overcoming Challenges to Business and Economic Development in Indian Country. Appendix: A Primary Federal Initiatives Promoting Business Development/Economic Development in Indian Country


Congress has enacted many laws designed to promote BD/ED in Indian country. In accordance with this legislation, many federal departments and agencies have BD/ED programs and initiatives which often are aimed at supporting BD/ED consistent with Indian self-determination, tribal self-governance, and tribal sovereignty. The table on the following page summarizes the federal BD/ED initiatives thought be most important by the study participants. The table displays the public law that authorizes the BD/ED program, the federal agency that administers the program, the title of the legislation, a description of the legislation/program, the tribes in the study that participate in the program, and the catalogue of federal domestic assistance (CDFA) number of the program, if available (see www.cdfa.gov).


Table A-1.
Federal BD/ED Initiatives Most Important to Participating Tribes and Native Corporations
Authorization Federal Agency Title Description Affected Tribes in Study CFDA Number
Public Laws 85-536 and 95-507 SBA Public Law 95-507, enacted in 1978, amended the Small Business Act of 1958 Section 8(a) of the Act includes provisions that support small businesses owned and controlled by socially and economically disadvantaged individuals so that such concerns can compete on an equal basis in the American economy. Colville Mississippi Choctaw Cheyenne River Sioux Three Affiliated Tribes BBNC 59.006
Public Law 93-638 DHHS, DOI Indian Self Determination and Education Assistance Act of 1975 and significant subsequent Amendments: Title 3: Self Governance Demonstration Project of 1988 (P.L. 100-472) (Repealed) Title 4: Tribal Self-Governance Demonstration Act of 1991 (P.L. 102-184 Title 5: Indian Self-Determination Act Amendments of 1994 (P.L. 103-413) Title 5 replacement: Tribal Self-Governance for Indian Health Service Programs (P.L. 106-260) To provide maximum Indian participation in the government and education of Indian people; to provide for the full participation of Indian tribes in programs and services conducted by the federal government for Indians; to encourage the development of human resources of the Indian people; to support the right of Indian citizens to control their own educational activities. All 10 tribes/Native corporations in study  
Public Law 92-203 DOI Alaska Native Claims Settlement Act of 1971 ANCSA extinguished native claims to most of Alaska in exchange for approximately one-ninth of the state's land plus $962.5 million in compensation. Native land title was conveyed to 12 regional and over 200 local village corporations chartered under Alaska state law. All shareholders of the corporations are required to be Alaska Natives. BBNC Doyon Ltd.  
Public Law 97-473 Treasury Indian Tribal Governmental Tax Status Act of 1982 Tribes are treated like states for purposes of the bond rules, but are subject to two restrictions: (1) tribal governments can issue bonds only to finance facilities that serve an "essential governmental function," and (2) tribes cannot issue private activity bonds except for manufacturing facilities operated by the tribal government. Mississippi Choctaw  
Public Law 105-135 USDA, HUD SBA The HUBZone Act of 1997 Expanded by P.L. 106-554 to broaden the definition for Indian country to make firms owned by Alaska Native corporations eligible to participate in the HUBZone Program. Similar to the 8(a) Program, the HUBZone Program provides federal contract preferences to qualified small businesses located in any of the nation's more than 8,000 HUBZone areas in an effort to increase employment, capital investment, and economic development. HUBZones include all lands on federally recognized Native American reservations. BBNC Cheyenne River Sioux Navajo Nation Mississippi Choctaw Three Affiliated Tribes 10.772 (USDA) 14.244 (HUD)
Public Law 100-497 DOI IGRC The Indian Gaming Regulatory Act of 1988 This Act is designed to promote tribal economic development, self-sufficiency, and strong tribal governments. It established the jurisdictional framework that governs Indian gaming and serves as the statutory basis for the operation of gaming by Indian tribes. The Act established an independent federal regulatory authority, the National Indian Gaming Commission, to regulate gaming on Indian lands. Cheyenne River Sioux Colville Citizen Potawatomi Gila River Mississippi Choctaw Three Affiliated Tribes Turtle Mountain  
Public Law 103-66 Treasury Omnibus Budget Reconciliation Act of 1993 This Act includes the Indian Employment Tax Credit, which allows businesses to receive a tax credit if they hire Native Americans that live on or near an Indian reservation. For every employee who is Native American, or the spouse of a Native American, the employer is entitled to claim a federal tax credit of 20 percent of the first $20,000 of wages and medical insurance expense. If the credits are unused, they carry forward for 15 years. Citizen Potawatomi Navajo Nation Three Affiliated Tribes  
Public Law 103-354 USDA U.S. Department of Agriculture Reorganization Act of 1994 This Act replaced the Rural Electrification Administration with the Rural Utilities Service (RUS). RUS administers the electric and telecommunications loan programs and the water and waste disposal loan and grant programs. RUS offers 100 percent guarantees of loans made by the Federal Financing Bank to qualified electric and telecommunications borrowers. The purpose of the program is to provide the infrastructure necessary in rural communities. Gila River  
Public Law 103-325 Treasury Community Development Banking and Financial Institutions Act of 1994 This Act created the Community Development Financial Institution (CDFI) Fund to promote economic revitalization and community development by investing in and assisting CDFIs through equity investments, capital grants, loans, and technical assistance support. Citizen Potawatomi Doyon, Ltd. Navajo Nation  
Public Law 105-34 USDA Taxpayer Relief Act of 1997 This Act enabled tribes to apply to the Empowerment Zone and Enterprise Community (EZ/EC) program administered by the Department of Agriculture. EZ/EC communities are encouraged to leverage their grant money to secure additional funding for their projects and operations from other sources. EZ/ECs receive special consideration for many federal assistance programs as well as earmarked funds from the USDA Rural Development Program. Colville Navajo Nation  
Public Law 106-554 Treasury SBA Community Renewal Tax Relief Act of 2000 This Act created the New Markets Tax Credit Program to encourage investment in low-income communities. This program works in 4 steps: (1) Qualified Community Development Entities (CDEs) can apply to the CDFI Fund for an award of New Markets Tax Credits; (2) the CDE then seeks taxpayers to make Qualifying Equity Investments in the CDE; (3) the CDE invests these funds in low-income businesses located in low-income communities; (4) the taxpayer in step 2 will be eligible to claim a tax credit equal to 5 percent of its equity investment in the CDE for each of the first three years and a 6 percent credit for each of the next four years (total of 39 percent). Citizen Potawatomi Navajo Nation  
S.558 Treasury Indian Reservation Economic Investment Act of 2001 This Act amends the Internal Revenue Code of 1986 to provide tax credits for investment in Indian reservation economic development, and for other purposes. The amount of tax credit is based on the level of unemployment on the reservation where an investment is made relative to the unemployment rate of the entire United States. Navajo Nation Three Affiliated Tribes  
Public Laws 103-66 and


USDA Office of Community Development Empowerment Zones and Enterprise Communities Program Grants are provided to stimulate the creation of new jobs and to promote revitalization of economically distressed areas. Colville Navajo Nation 10.772
Public Law 104-127 USDA/Rural Business Cooperative Service Federal Agriculture Improvement and Reform Act of 1996 The goal of this Act is to promote sustainable economic development in rural communities with exceptional needs. Grant funds may be used to plan for business and economic development, training, and technical assistance. Colville Citizen Potawatomi Gila River Navajo 10.773
  DOI Forestry on Indian Lands To maintain, protect, enhance, and develop Indian forest resources through the execution of forest management activities. Colville Mississippi Choctaw Navajo Nation 15.035
Public Laws 91-229 USDA/Farm Service Agency Loans to Indian Tribes and Tribal Corporation Act Direct loans are provided to enable federally recognized tribes and tribal corporations to acquire land within tribal reservations and Alaskan communities. The focus is to eliminate fractional heirships. Citizen Potawatomi Gila River 10.421
Public Law 105-393, as amended 42 U.S.C 3143 DOC/EDA Public Works and Economic Development Act of 1965, as amended Grants are provided to help strengthen economic development planning capabilities, formulate and establish comprehensive economic development, process, and strategies designed to reduce unemployment and increase incomes. All 10 tribes/Native corporations in study 11.302
Public Law 106-377 HUD/Policy Development & Research Alaska Native/Native Hawaiian Institutions Assisting Communities Grants are awarded to help Alaska Native and Native Hawaiian institutions of higher education address community development needs in their localities, including neighborhood revitalization, economic development, and housing. All 10 tribes/Native corporations in study 14.515
Public Law 93-383 HUD Indian Community Development Block Grant Program To provide assistance to Indian tribes and Alaska Native villages in the development of viable Indian communities (including economic development projects) All 10 tribes/Native corporations in study 14.862
PL 104-330 HUD/ONAP Native American Housing Assistance and Self Determination Act of 1996 (NAHASDA) The Act provides federal assistance for Indian tribes in a manner that recognized the right of tribal self-governance. All 10 tribes/Native corporations in study  
P.L. 93-644 P.L. 100-175 P.L. 100-581 P.L. 102-375 DHHS/ANA Native American Programs Grants and direct loans are provided for the development and implementation of social and economic development strategies that promote self-sufficiency. All 10 tribes/Native corporations in study 93.612
Public Laws 67-85 73-383 93-262 93-638 DOI/BIA Indian Economic Development Funds are provided to assist federally recognized tribes to develop resources to improve their economies through administration of credit programs and other economic development assistance activities. All 10 tribes/Native corporations in study 15.032
Public Laws 93-638 67-85 as amended USDA Fish, Wildlife, and Parks Programs on Indian Lands Funds are provided to promote the conservation, development, and use of natural and recreational resources for sustenance, economic support, cultural enrichment, and maximum benefit of Indians Colville Navajo Cheyenne River Sioux 15.039
Public Laws 67-85 73-383 93-262 93-638 as amended DOI Indian Loans/economic Development Funds are provided to assist Indians in obtaining financing from private sources to promote business development initiatives on or near federally recognized Indian reservations. All 10 tribes/Native corporations in study 15.124
Public Law 105-277 DOC Minority Business Development Administration Focus is to provide business development services to Native Americans interested in entering, expanding, or improving their efforts in the marketplace. Colville, Cheyenne River Sioux, Navajo Nation, Three Affiliated Tribes, Turtle Mountain Chippewa 11.801


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