Independent Banker - November 2022 - 53

of loans to tribes for
housing projects and
permits the tribes
to use a portion of
their Indian Housing
Block Grant as
leverage. The aim
is to reduce the risk
to the lender and
increase the number
of units the tribes
can build.
Lumbee Guaranty
Bank, which serves
the Lumbee Tribe
of North Carolina
and the broader
Community Bank's efforts to improve
tribal housing extends beyond
the HUD 184 program. Pape says
the community bank also uses its
expertise to help tribal housing
authorities use federal money for
larger housing projects than they
could do otherwise.
" Tribes are eligible for federal
dollars to go towards services and
housing for its members, and the
bank is familiar with those funds,
how they can be used and how they
can be appropriately leveraged
18
The number of Native
American-owned banks and
CDFIs in the United States
Source: Federal Reserve Bank of Minneapolis
while remaining in compliance, "
Pape explains. " That can help the
tribe multiply its funds dedicated to
housing efforts. "
One tool HUD provides to tribes is
the Title VI Loan Guarantee Program,
which was authorized by the Native
American Housing Assistance and
Self Determination Act of 1996. This
program provides a guarantee of 95%
community, has provided HUD
Title VI loans to the tribe, says Kyle
Chavis, CEO of the $506 million-asset
community bank, which is based in
Pembroke, N.C.
" We made the Title VI loan to the
tribe for housing for tribal members,
and it enables them to leverage their
HUD funding to service a loan for
multiple families' housing needs
instead of using those funds to build
individual houses, " Chavis explains.
Commercial lending for
tribal communities
Businesses in Native American
communities provide jobs and
stability, and community banks
know how important it is for them to
support those businesses.
For example, Native American
Bank provided financing for several
convenience stores at the Pine Ridge
Reservation. One of them doubles as
a community center, Ogaard says, so
the bank's support is providing jobs
and a place where people can gather.
" One of the other entities that we
have supported is a manufacturer
of protein bars, " he adds. " It's
not without its challenges, but it
produces jobs. And it is a mechanism
to demonstrate that even in a place
like Kyle, S.D., you can build an
entity and work on its success on an
ongoing basis. "
During COVID, like most
CDFI and MDI
grants help
Native American
banks
Grants for Community
Development Financial
Institutions and Minority
Depository Institutions,
such as money from
the Emergency Capital
Investment Program,
have helped Native
American banks serve
their communities.
" We received a significant
amount of capital through
the Emergency Capital
Investment Program, " says
Tom Ogaard, president and
CEO of Native American Bank
in Denver. " I think it's going
to have a transformational
effect on the bank and our
ability to support Indian
country and what we can do
to bring jobs and sustainable
economic opportunity within
Indian country. "
Left: Native American Bank provides
business lending toward healthcare
in reservations across the country.
Tribal members gather to set up for
the celebration and ceremonies to
commemorate breaking ground on a
healthcare facility.
independentbanker.org Q 53
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Independent Banker - November 2022

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