New glimmer of hope for the Navajo Business community

Navajo Businesses have a new financial order in reach. When it comes to lending to Small Native American Businesses and Communities, the money just isn’t there, but a glimmer of hope is in reach for the largest tribe in the U.S.

According to a new program called the Community Development Financial Institutions Fund or CDFI Fund from the U.S. Treasury, it gives underserved and distressed communities access to millions of dollars for economic development.

What would this do for the Navajo Nation. Based on the information from the U.S. Treasury, the Tribe itself could start investing, lending, and provide financial services to Navajo businesses and even provide economic development at the Chapter level to boost small rural communities to grow and bring jobs.

The Navajo Nation has an opportunity to starting lending with this new program and can even benefit the casinos. But, according to officials who are familiar with CDFI say the Tribe still has to prove itself to become a program partner, basically it just doesn’t allow anyone to just get into the program.

According to the CDFI, through its Bond Guarantee Program, by issuing bonds they can support CDFIs that make investments for eligible community or economic development purposes.

Since its creation, the CDFI Fund has awarded over $1.7 billion to community development organizations and financial institutions; it has awarded allocations of New Markets Tax Credits which will attract private-sector investments totaling $33 billion, which makes this even more attractive for small businesses and small rural communities on the reservation.