July 6, 2007
HP-484

Treasury Awards $3.6 Million to Organizations Serving
Economically Distressed Native American Communities

Crazy Horse, South Dakota – The director of the U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund, Kimberly A. Reed, visited South Dakota's Crazy Horse Memorial today to announce awards totaling $3,632,292 to 19 organizations serving Native American or Alaskan Native communities in 12 states. The awards were made through the CDFI Fund's Native American CDFI Assistance (NACA) Program.

"Today, we are recognizing 19 Native organizations that are on the front lines to provide important financial education, create critically needed jobs and help Native families and communities build personal wealth," said CDFI Fund Director Reed. "We are very pleased to know that the over $3.6 million being awarded today will provide these community-based lenders the resources to do more of this important work in Native American and Alaskan Native communities."

Treasury held the national award announcement at the Crazy Horse Memorial to highlight the four South Dakota-based award recipients: First Nations Oweesta Corporation (Rapid City), The Lakota Fund (Kyle), Mazaska Owecaso Otipi Financial, Inc. (Pine Ridge), and the Teton Coalition, Inc. (Rapid City) – all of which are leaders serving the community development needs of their Native communities. The awardees were selected after a competitive review of 29 applications received by the CDFI Fund from organizations across the nation that requested nearly $11 million in funding under the 2007 round of the NACA Program.

Since 2002, the CDFI Fund has made 148 awards totaling $23.1 million through its various funding programs aimed at benefiting Native communities. In five short years, the number of Native CDFIs has grown from 14 to 43 – a 307 percent increase. In addition, the CDFI Fund has awarded over $7.5 million in contracts to organizations that provide capacity-building and financial services training programs that are focused on Native Communities.

The CDFI Fund invests in and builds the capacity of community-based, private, for-profit and non-profit financial institutions with a primary mission of community development in economically distressed communities. These institutions – certified by the CDFI Fund as community development financial institutions, or CDFIs – are able to respond to gaps in local markets that traditional financial institutions are not adequately serving. CDFIs provide critically needed capital, credit and other financial products in addition to technical assistance to community residents and businesses, service providers, and developers working to meet community needs.

In 2004, the CDFI Fund introduced the NACA Program, which was specifically designed to encourage the creation and strengthening of CDFIs that primarily serve Native American, Alaska Native, and Native Hawaiian communities. Organizations funded serve a wide range of Native communities, and reflect a diversity of institutions in various stages of development – from organizations in the early planning stages of creating a CDFI, to tribal entities working to certify an existing lending program, to established CDFIs in need of further capacity building assistance. Two types of funding are available: financial assistance awards, available only to certified CDFIs and primarily used for financing capital; and technical assistance grants used to acquire products or services such as computer hardware and software, staff training, etc.

The CDFI Fund's vision is an America in which all people have adequate access to affordable capital, credit and financial services.

For more information about these awards, or about the CDFI Fund and its programs, please visit the Fund's website at: http://www.cdfifund.gov.