Community Affairs:
Native American Banking Resource Directory
This directory provides descriptions and contact information for a sampling of
organizations that can provide resources to banks interested in lending,
investing, or providing retail financial services in Indian country. These
activities are organized under the following categories:
Government
Office of the Comptroller of the Currency (OCC)
2002 Native American Banking Forum was held in Washington, DC,
on October 16, 2002, for the purpose of exploring the issue of access to credit
for Native Americans. This forum featured keynote messages from the
OCC's First Senior Deputy Comptroller and Chief Counsel, Julie Williams
, the
CDFI Fund's Director, Tony Brown
, and
HUD's Deputy Assistant Secretary for Native American Programs, Rodger Boyd
. Two panels were
held during the day:
Access to Retail Financial Services and Financial Literacy
- This panel explored access to financial services as provided by
tribally-owned financial institutions, large banks, and community
organizations.
-
Vickie Oldman, Principal, Kitseallyboy Consulting
[Text Version]
-
Steve Barbier, Management Consultant, Neighborhood
Reinvestment Corporation
[Text Version]
-
Paul Olson, Community Banking President, Wells Fargo Bank, N.A
[Text Version]
-
Frank Riolo, President and CEO, Borrego Springs Bank, N.A.
[Text Version]
Economic Development in Indian Country -
This panel reviewed commercial lending programs in Indian country and
highlighted what banks look for when establishing a relationship with a
tribe.
Fall 2001 Community Developments
Newsletter "Banking in Indian Country"
contains articles addressing how financial institutions, tribal organizations,
and others have developed partnerships that lead to increased access to lending
and other financial services on tribal lands. Successes are described in the
areas of home mortgage lending, commercial lending, retail services, financial
literacy initiatives, and development of Native American financial
institutions.
Guide to Providing Financial Services to Native
Americans in Indian Country
is a study about banks that have effectively offered products and services to
Native Americans living in Indian country. The study's results suggest that
banks have made significant progress in recent years in delivering products and
services to Indian country. An important factor when banks attempt to offer
products and services in Indian country is the bankers' ability to recognize
the problems and needs of tribes in their market areas. The report highlights
some keys to success, such as consumer education and marketing and how banks
provide access to credit, deposit services, and nontraditional activities.
Policy Statement on Minority-Owned Banks
outlines the OCC's policies and initiatives that facilitate the ability for
minority banks to prosper and meet the needs of their communities.
Minority-
and Women-owned National Bank list is an annual
compilation of national banks that are owned and controlled by minorities
and/or women.
A Guide to Tribal Ownership of a
National Bank
(September, 2002) is an OCC publication designed to help federally recognized
Native American tribes explore entry into the national banking system by
establishing or acquiring control of a national bank. A companion to the
Comptroller's Corporate Manual, the guide contains the OCC's
general policies and procedures for forming a new national bank or otherwise
entering into the national banking system.
Commercial Lending in Indian Country: Potential
Opportunities in an Untapped Market
(March 2006) discusses the specific approaches that bankers active in this
market have used to accommodate some of the unique business and legal
challenges, including the use of several federal programs that are available to
manage the risks in tribal commercial and business development.
Department of Interior (DOI)
Bureau of Indian Affairs (BIA) within the U.S.
Department of the Interior (DOI) operates three loan programs, which banks may
participate in to further economic development activity in Indian
country. Additional information on these loan programs can be obtained by
contacting BIA directly at 202.513.7681. The three loan programs are as
follows:
-
BIA Indian Loan Guarantee Program
will guarantee up to 90 percent of a loan made to an Indian owned
business. The maximum guaranty is $500,000 for individual tribal members,
but can go higher for tribes and tribal enterprises.
-
BIA Indian Loan Insurance Program
will insure bank loans up to $250,000 for individual tribal members, tribes or
tribal enterprises. Insurance claims are limited to 15 percent of the
bank's insured loan portfolio or 90 percent of the outstanding balance on a
particular loan.
-
BIA Interest Subsidy Program is a
rebate to the borrower (under the guaranty or insurance program) of the
difference between the bank's interest rate and the rate set for Indian loans
by the U.S. treasury, for up to five years.
Department of Housing and Urban Development (HUD)
Code Talk is a federal inter-agency Native American Web
site that provides information for Native American communities. Information on
HUD's One-Stop Mortgage Center can be accessed from this site. The HUD Office
of Native American Programs (ONAP) maintains the Code Talk Website.
HUD Indian Home Loan Guarantee Program (Section 184) provides
Native Americans who are current enrolled members of a federally recognized
tribe access to sources of private mortgage financing, secured by HUD loan
guarantees. Section 184 covers one- to four-family homes located in Native
American or Alaskan Native areas where land may be held in trust by the U.S.
government for the benefit of a particular tribe or individual. The program may
also be used to guarantee loans on fee simple land. The loans may be used for
construction, acquisition, or rehabilitation of homes.
HUD's Title VI Loan Guarantees assist Indian Housing Block
Grant recipients who want to finance eligible affordable housing activities,
but, are unable to secure financing without the assistance of the federal
guarantee. A private lender provides the financing, and HUD issues the
guarantee to the lender. The HUD guaranty is for 95 percent of the unpaid
principal balance and accrued interest. Lenders or investors assume a 5 percent
risk.
HUD's One-Stop Mortgage Center Initiative identifies barriers
and recommends solutions to make the mortgage process more user friendly for
homeownership opportunity in Indian country. Appendix K
describes innovative private sector lender initiatives using section 184, Low
Income Housing Tax Credits, Federal Home Loan Bank Affordable Housing Program,
NAHASDA Title VI, and Bond Financing.
HUD's Indian Housing Bond Finance Program is an initiative
based on Title II of NAHASDA that provides the tribes a means to leverage their
Indian Housing Block Grant dollars to address their immediate housing
needs. Tribes can pledge up to one third of their IHBG annual
appropriations to make principal and interest payment on tribal taxable or
tax-exempt bonds. The bonds can be used to acquire, build or rehabilitate
single and multifamily housing, or for infrastructure in support of affordable
housing activity.
HUD-Approved Housing Counseling Agencies is a list of
agencies that have been identified as providing homebuyer education and
counseling. The listing is by state and includes some counseling groups
administered by tribal entities.
Small Business Administration (SBA)
Small Business Administration Office of Native American Affairs
(ONAA) is dedicated to ensuring that Native Americans, Native
Alaskans, and Native Hawaiians seeking to create, develop and expand small
businesses have full access to the necessary business development and expansion
tools available through the agency's entrepreneurial development, lending and
procurement programs. SBA's Web site contains information on:
Department of Treasury
Minority Bank Deposit Program (MBDP) is a voluntary
program to encourage federal agencies, state and local governments, and the
private sector to use MBDP participants as depositaries and financial agents.
Qualified MBDP participants are certified by the Financial Management Service
(FMS), a bureau of the U.S. Department of the Treasury, and included on a
program roster distributed nationally to federal program agencies, contractors,
and other public and private sector organizations.
U.S. Department of Agriculture (USDA)
Guide to USDA Programs for American Indians
and Alaskan Natives provides a summary of the Department
of Agriculture's programs and services for Native Americans and Alaskan
Natives. Includes summaries of the Section 502 home loan program, business and
industry loan guarantees, and Rural Utilities Service guaranteed loans.
USDA Section 502 Program includes a
direct single family loan program, which can be used as a down payment or as a
sole source of assistance, and a guarantee program, for a loan that is placed
through a private lender. Click here
for a program summary.
Lending on Native American Lands: A Guide
for Rural Development Staff: This guide was
primarily developed to better train USDA Rural Development staff on how to
close mortgage loans on Indian lands held in trust by the federal government.
However, the Indian Housing Industry, including lenders, will find the guide
useful as it is a window into closing both 502 direct and guaranteed mortgage
loans on trust land.
USDA Section 515 & 538 Program is intended to fund
construction, acquisition, or rehabilitation of rural multifamily rental
housing for low-income occupants. The 515 program provides direct loans from
USDA Rural Development where the 538 program provides loan guarantees on
financing placed through a private lender.
Community Programs, a division of the Housing and
Community Facilities Programs, is part of the United States Department of
Agriculture's Rural Development. Community Programs administers programs
designed to develop essential community facilities for public use in rural
areas. Community Programs utilizes three flexible financial tools to achieve
this goal: the Community Facilities Guaranteed Loan Program, the Community
Facilities Direct Loan Program, and the Community Facilities Grant Program
USDA's
Rural Business and Cooperative Programs, the U.S.
Department of Agriculture's Rural Development Office, provides business and
industry loan guarantees up to 80 percent of a loan made by a commercial
lender. Loan proceeds may be used for working capital, machinery and equipment,
buildings and real estate, and certain types of debt refinancing. The primary
purpose is to create and maintain employment and improve the economic climate
in rural communities. The Rural Business Programs also provide loan guarantees
for Renewable Energy projects as authorized under Section 9006 of the Farm
Bill.
USDA's Rural Utility Service,
which is a program area of USDA Rural Development,, provides grants,
direct loans and guaranteed loans to develop telecommunications infrastructure,
electric infrastructure and water and wastewater systems in rural areas.
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General Information
The Model Tribal Secured Transactions Act provides a comprehensive set of rules to encourage the availability of credit to Native American businesses and consumers. See Susan Woodrow's PowerPoint presentation on this important legal framework.
The Harvard Project on American Indian Economic Development was
created to understand the conditions under which sustained, self-determined
social and economic development is achieved among American Indian nations. The
Harvard Project's central activities include research and the application of
research results in service to Indian country. Some of this research focuses on
bank financing in Indian country.
http://www.ksg.harvard.edu/hpaied/overview.htm
The Falmouth Institute assists Indian tribes, tribal
organizations and government agencies to meet the complex challenges of Indian
country. They are a leading provider of training seminars and conferences,
hands-on consulting, and publishing services dedicated solely to the issues
impacting tribes today. Banks may be interested in attending the seminars or
conferences that focus on banking issues.
www.falmouthinstitute.com
National Congress of American Indians (NCAI) serves as the
major national tribal government organization in efforts to monitor federal
policy and coordinate efforts to inform federal decisions that affect tribal
government interests.
www.ncai.org
- National Native American Economic Policy Summit Proceedings
www.ncai.org/National_Native_American_Econo.289.0.html
- Native American Economic Policy Report
www.ncai.org/ncai/econpolicy/Summit_Policy_Report_Fnl2007NS.pdf
North American Native Bankers Association (NANBA) is a non-profit association consisting of tribally-owned financial institutions that facilitate the delivery of credit, mortgage lending, small business lending, and other financial services to Indian Country. Their website has a national directory of tribally-owned banks and Native American CDFIs.
www.nanba.org
Native American Finance Officers Association (NAFOA) is a national non-profit organization that builds the financial strength of tribal governments and their enterprises by providing financial education and convening national conferences.
www.nafoa.org
The National Center for American Indian Enterprise Development (NCAIED) is a national non-profit organization, founded and directed by American Indians, committed to business development for those living in Indian Country.
www.ncaied.org
Tiller's
Guide to Indian Country: Economic Profiles of American Indian Reservations
profiles the economy of 500 Native American reservations in 36 states.
The guide indicates that wherever possible, it has relied upon information
provided by Native American tribes. For each reservation, the guide describes
its location and land holdings, culture and history, government, economy,
infrastructure, and community facilities. State maps are included to provide
the general locations of the reservations.
Federal Enterprise Zone and Empowerment Communities are
programs providing special financial incentives for businesses that locate in
certain designated areas. The following are links to summaries of the
Empowerment Zones and Enterprise Communities located on Native American
Reservations.
The Community Development Financial Institutions Fund undertook
The Native American Lending Study
for the purposes of examining the access to capital and financial services on
Indian Lands and Hawaiian Home Lands, identifying the barriers to access, and
providing options to address these barriers. The mission of the CDFI Fund is to
expand the capacity of financial institutions to provide capital, credit and
financial services in underserved markets.
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Single
Family
Fannie Mae has a number of secondary market programs offered
through the Native American Conventional Lending Initiative (NACLI) that are
for Native Americans who are interested in purchasing homes. The loan products
are available on fee simple land or land that is restricted by tribal trust
agreements. Most involve the use of private mortgage insurance (PMI).
Freddie Mac has a program for conventional lending for
Native Americans that is available to lenders making loans on unrestricted fee
simple land, federally restricted trust land, and tribally restricted fee
simple land.
Federal Home Loan Bank of Des Moines - The Home Loan Bank
allocated $250,000 of its annual required Affordable Housing Program (AHP)
contribution to its members to help eligible households that are purchasing one
family, owner-occupied properties on Native American Service Areas. Potential
homebuyers living on Native American Reservations and Settlements
(Reservations) can use the funds for down payment, closing or rehabilitation
costs.
www.fhlbdm.com/ci_ahp_nahi.htm
NeighborWorks®
America periodically offers the following two courses at
its training institute: (1) "Designing a Home Ownership Program for Indian
Country," and (2) "Personal Financial Skills for Native Americans."
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Multifamily
Low Income Housing Tax Credits (LIHTC) are
used by a number of tribes to subsidize the cost of creating multifamily rental
housing. Under the Low Income Housing Tax Credit program, taxpayers may take a
credit against federal income taxes for qualified rental housing development
expenditures. Tribes have sold the Low Income Housing Tax Credits, on projects
the tribes have developed, to funds or other investors. Click
here
for a summary of these initiatives.
National
American Indian Housing Council provides training in
Native American housing management and technical assistance to Native American
housing professionals.
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Public
Facilities Lending
Rural Community Assistance Corporation (RCAC)
is a nonprofit organization dedicated to improving the quality of life for
rural communities and disadvantaged people through partnerships, technical
assistance, and access to resources, with a priority on providing information
and assistance to Native American groups. Technical expertise and experience
include the development of guidance documents, reference materials, and dispute
resolution activities. Major funders of the division include the U.S.
Department of Health and Human Services, Rural Community Assistance Program
(RCAP), USDA, California Department of Economic Opportunity, U.S. Environmental
Protection Agency and The Ford Foundation. RCAC has assisted hundreds of
communities with water or wastewater activities, leveraged millions of dollars
for water and wastewater facilities development, and trained thousands of
officials and citizens.
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Commercial Lending
Native Center for American Indian Enterprise Development operates
the Native American Business Consultants (NABC) program in cooperation with the
U.S. Department of Commerce Minority Business Development Centers. The NABC is
a nationwide project that provides management and technical assistance for
Native Americans in areas with no access to economic and business development
assistance. This assistance extends to both tribes and individuals living on or
off the reservation. Assistance is available for all stages of business from
start-up through expansion.
www.ncaied.org
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Financial
Literacy
Native
Financial Education Coalition works to strengthen tribal
economics. Article describes how the NFEC works to bring together local,
regional and national resources to increase the awareness of the need for
financial education in Native communities.
www.nfec.info/policy
First
Nations Development Institute promotes
culturally-appropriate economic development by and for Native peoples. First
Nations helps develop the capacity of tribes, Native organizations, and Native
American people to better manage their financial assets. A curriculum,
"Building Native Communities: Financial Skills for Families," developed in
partnership with the Fannie Mae Foundation, is available free of charge.
White House Initiative on Tribal Colleges and Universities
was implemented through Executive Order 13021 with a goal of public-private
partnerships to help tribal colleges bring economic development to their
reservations and improve the quality of Native American higher education. The
U.S. Department of Education Web site provides a listing of tribal colleges
participating in this initiative.
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Native
American Financial Institutions
First Nations Oweesta Corporation
www.oweesta.org/nfsi was developed to bring together the growing
community of Native financial institutions, community development corporations,
financial education providers and Native assets researchers and advocates. The
web site includes information on training and technical assistance, research,
and policy analysis provided by the corporation. In addition, Oweesta maintains
a comprehensive
list of Native American-owned CDFIs
.
Community Development Financial Institutions (CDFI) Fund stimulates
the creation and expansion of CDFIs by providing incentives to traditional
banks and thrifts through the Bank Enterprise Act awards and other programs.
Technical assistance grants are also provided to strengthen the capacity of
community development financial institutions.
Click here for a description of the programs that are applicable to
Native American CDFIs.
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