financial institutions

Bankshot Episode 46: Ignored by banks, Indigenous communities build their own financial system

Year

EAGLE BUTTE, S.D. — The Cheyenne River Sioux Reservation is big, but it isn’t as big as it used to be. As seen from the air, the land is an expansive, grayish-brown terrain cracked open by the winding
Missouri River with scattered clusters of black dots. On the ground, the dots become cows — so many cows — and the land becomes a roiling sea of prairie grass heaving under currents of wind you can see coming and going from miles in every direction. The reservation covers some 4,200 square miles in north-central South Dakota; it is the fourth-largest Indigenous reservation in the continental United States. Officially, it is home to some 8,000 people, though census figures systemically undercount Indigenous communities.

But there was a time not long ago when the Lakota, Nakota and Dakota people whose descendants now populate Cheyenne River knew no boundaries — they went wherever the buffalo led them across the plains.The concept of territorial boundaries arrived with the first white settlers to the region and was first formalized in the Fort Laramie treaties of 1851 and 1868, which created the Great Sioux Reservation, comprising roughly the western half of what’s now South Dakota and a slice of northern Nebraska. The discovery of gold in the Black Hills in 1874 sparked a gold rush, and ultimately a military incursion into the territory that culminated with the Battle of Little Bighorn in 1876. The Black Hills was appropriated to the federal government with the passage of the Act of 1877, whittling the Great Sioux Reservation down by a third. Another third of the territory was taken back by Congress with the passage of the Sioux Act of 1889, creating the Cheyenne River Reservation...

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Resource Type
Citation

Pederson, Brendan. Bankshot Episode 46: Ignored by banks, Indigenous communities build their own financial system. American Banker. July 24, 2021. Podcast. Accessed July 16, 2021: https://www.americanbanker.com/news/ignored-by-banks-indigenous-communi…

Borrego Springs Bank of the Viejas Band

Year

The first American Indian-owned bank in California, the Borrego Springs Bank (BSB) offers a full range of services to tribal governments and Native-owned businesses in order to facilitate the entrepreneurial growth of American Indian tribes. With more than $74 million in assets and two full service branches, BSB’s services include credit counseling, funds management assistance, Indian gaming services, and business loans. The bank also works with other financial and governmental entities to improve Indians’ access to financial services.

Resource Type
Citation

"Bringing Financial and Business Expertise to Tribes". Honoring Nations: 2002 Honoree. The Harvard Project on American Indian Economic Development, John F. Kennedy School of Government, Harvard University. Cambridge, Massachusetts. 2003. Report. 

Permissions

This Honoring Nations report is featured on the Indigenous Governance Database with the permission of the Harvard Project on American Indian Economic Development.

Honoring Nations: Kristi Coker-Bias and Allen Pemberton: The Citizen Potawatomi Community Development Corporation and the Red Lake Walleye Recovery Program (Q&A)

Producer
Harvard Project on American Indian Economic Development
Year

Honoring Nations symposium presenters Kristi Coker-Bias and Allen Pemberton field questions from the audience about the Citizen Potawatomi Community Development Corporation and the Red Lake Walleye Recovery Program.

Resource Type
Citation

Coker-Bias, Kristi and Allen Pemberton. "The Citizen Potawatomi Community Development Corporation and the Red Lake Walleye Recovery Program (Q&A)." Harvard Project on American Economic Development, John F. Kennedy School of Government, Harvard University. Cambridge, Massachusetts. September 27-28, 2007. Presentation.

Alfreda Mitre:

"The next question is from Ben Nuvamsa, chairman from the Hopi Tribe."

Ben Nuvamsa:

"Thank you. I just wanted to thank you for all the good work that you're doing out there for Indian Country, all of you. I just have a question for Kristi Coker on your program. Most of our reservations are isolated out there and we typically have a difficult time attracting businesses, or at least the financial, the banks and so on, out on our reservations. My question to you is, your population, was that a deterrent in trying to get the banks or that kind of financial [institution]? Maybe you took the matter into your own hands, but it seems like that's something that may be a challenge for most of us. And how did you overcome that obstacle? Because we are faced with that -- we would like to have some banking institution out there, but it's because of our isolation it's often difficult for us to do that. By the way, we're Hopi, we may be short but we walk tall."

Kristi Coker:

"Well, we did take matters into our own hands. In 1994, we bought a struggling bank, a national bank, the tribe did. And why we started the Community Development Corporation in 2003 is that traditional financing, traditional financial institutions, just weren't the answer for the Native American community. It was a great enterprise for the tribe and it's a great financial institution, but so many people just needed the handholding and just were leery of banks still. And so even though we have our own bank there, there was a need for a non-traditional, flexible, self-regulated financial institution that is geared toward your mission, geared toward your market.

There's a lot you can do with a CDFI [Community Development Financial Institution]. You can do a credit union, and a credit union is the answer for a lot of Native communities. Oweesta even has some upcoming training. I'm on the Oweesta board, if you couldn't tell. But Oweesta has some upcoming training on ‘does your native community need a credit union?' And it's actually online and over the phone and so that might be something you want to get involved with. But a CDFI can do a lot, as you see. We're doing financial education, we're doing credit counseling, we're doing commercial lending, micro loans, larger loans. So we're doing loans from $2,000 up to $750,000. So we have a wide range of loans.

And we have had a tremendous amount of interest from private foundations, from the large national banks. They don't understand how to do lending in Indian Country and a lot of them, through the Community Reinvestment Act, have incentives to do this type of work. So one of the things they can do is they can fund CDFIs in Indian Country to do this work for them. If they're not interested in doing that, you could at least engage the local institutions in financial education as trainers and curriculum they may have.

I think what's so neat about the CDFI -- and the Treasury Department has been an amazing department, as far as a partnership with tribes. They have set up very comprehensive, coordinated programs and actually give you the training and technical assistance along with the money. And one of the things about being a CDFI, for those of you that don't know, our incentive, one of our incentives was for every non-federal dollar you can raise, you get that matched dollar for dollar from the Treasury. So a lot of my time goes to fundraising efforts and those sorts of things.

But I think what's so neat is the flexibility of it. It's regulated by the tribe, by the board of directors of your community development financial institution, and that it meets the needs of your people. You design it around your people. It looks many different ways. Some CDFIs are doing housing, some CDFIs are just doing IDAs [Individual Development Account] or just micro loans. You gear it toward your mission and your market, which is kind of driven by a study. It all kind of starts with a market study to determine what the needs are. Is there a housing need? Is there a business loan need? Do we have a gap?

Another thing that we're doing is even helping with gap financing for banks. A lot of the times even existing businesses that have assets, that have collateral, that have financial records, and those types of things, most of the time you can only get 80 percent financing at a bank and they just don't have 20 percent cash to inject at that time. So we're able to come in and it would actually be a bankable project through a bank and we're actually able to come and do the 20 percent.

So I think there's lots of creative things you can do and lots of opportunities and I would recommend exploring developing your private sector."

Mediator:

"Next question is from JoAnn Chase."

JoAnn Chase:

"I have a question for Red Lake. Obviously, so many of the stories that we have heard, they're very moving components to how initiatives and programs came to be. And one of the most moving ones for me, during my involvement with this program, was the fact that your own fishermen chose, they voted actually to vote themselves out of a job in economic situations which were absolutely dire. And so that told me that you obviously spent some significant time with your own community and working with the community. I'm wondering if you might just talk just a little bit more about what went into engaging folks, to the point that they would take a very deeply sacrificial decision in order to replenish the lake, and some of the aspects of the dialogue or the efforts that you, as a program, had to undertake in order to get the community to really buy and support and ultimately make very deeply sacrificial decisions."

Allen Pemberton:

"I wasn't actually at the meeting, but there was a lot of talk. Some people didn't want to do it, but I think the majority of the people seen that they just weren't getting the catches that they were in years past, and if they didn't do something now it would never come back.

I think looking at the records and some of the stuff that happened years before -- like about six years earlier we had a really big year class of female walleyes. And, as we all know, we have to have females to keep moving in this life. And there was -- the fishery guys that I talked to, they did the spawn nets every year and there was like -- they'd get like 100 males in the net and no female. And what happened was that -- If they would have just stopped like five years before, which is pretty hard for them to do because they were really catching the walleyes that year, and if they would have just stopped then, knowing what they know now, maybe we wouldn't have to quit for ten years [because] there was that nucleus of fish out there at that time, but they got hit pretty hard by the nets and stuff. And I think a lot of the people back home now, they're worried about -- that's why they told us to take a cautious look at what we do from now on. We've go to protect that resource.

One of the things the old people, the chiefs, and people called it, that lake was our freezer. As long as you have fish in there we're never going to starve. There are so many things that move to these days. Like my grandpa, he told me, there's another -- I have a hard time talking about him because I loved him. He told me, 'There's another lake under this lake.' That was one of the kind of -- the fish will come back, there's another lake under here. And a lot of people to this day still think that there is one there, but I don't know. It's kind of hard to -- it's in my heart to take care of our land. The fishermen are -- right now, they're looking at a different way of taking fish because a lot this, what happened was -- they all know it. All of them were older guys and now there's ten years of people, almost a generation of people, that didn't go out into the lake and do any fishing.

So the lake, our lake is -- I always remember what Pat Brown said, our fishery biologist, when he first came to Red Lake just before they started the recovery. He came from Wisconsin (another Packer fan), but he says to me, he said, ‘Man, I walked up to...I got to DNR [Department of Natural Resources] and I looked out on that lake and said, ‘Oh, man, how am I ever going to bring this thing back? I can't even see the other side of the lake. It's just monstrous.'' It's the sixth largest fresh water lake in the United States. He just said, ‘Oh, man, are we ever going to be able to bring it back?' It was a big initiative. And actually, the DNR took a big step forward in that. And really, Dave Connors, and there's a lot of people to thank that were non-members, but they were hired by the tribe to help us bring this lake back and it's back bigger than it ever was. The numbers show that there's more fish in our lake than there ever was.

And I think one of the things that happened throughout -- when I first got on the council we went to a game one time. I always like to tell this story. Red Lake was playing in Grand Forks, which is about 90 miles away. Basketball -- it's a big thing on our reservation. So everybody went. And we were coming home, and my wife -- we were riding down the road between Red Lake and Redbye coming home -- and I said, ‘Man, what is that on that truck?' We seen these red lights coming and I said, ‘What is that?' It's almost covering the road. And we got closer and there was a plane, there was a plane on the back of this truck. These non-members came and they flew up and down Redby, which is the district I live in and represent, and they landed on the lake and started fishing, which is -- the fishing, you can come buy a permit on our reservation to fish the small lake but the big lake is only for [band] members; only members fish that lake. So we guard that with our lives. So people are calling the cops. I suppose these guys thought, ‘Oh, these Indian tribes they don't have no game wardens. They ain't going to care if we go fish on their lake.' They knew where they were. And what they did was they landed and started fishing. And game wardens went out and arrested them, took their plane away.

They were coming down -- Then when I come home, it was like my first year on the council and we were getting bombarded, the council was, with ‘What are you going to do with this?' Because we really can't...in our laws -- it's one of the things we've been working on now -- that we can't do anything to non-members. If a non-member comes [and] punches me, we can't take him to court. The federal government would probably slap his hand and, ‘Go ahead. Go ahead and land on the lake some more if you want. It's only Indians that live down there.' But one of the things that I said at that time, I said, 'We should just keep that plane because there's going to be more people coming, thinking that they can trespass on our land.' But we said, ‘Well, we'll be good neighbors and give it back to them.' Like we've been catching heck over that for the last -- I think at the Honoring Nations deal I was telling them, I said, ‘If we would have kept that plane I could have flew out here to Sacramento. I would have been a pilot by now.' One of the things that happened after that, they did get fined a lot. It wasn't the best plane in the world. But you have to, as Indian people, you have to stand up for your rights.

We own that land in Red Lake. It's all owned in common. It's a closed reservation. We own all the land there. We have hunting and fishing rights and we never ceded our lands to the federal government. I'll just let you know that they had a game warden that was for the State of Minnesota, and it seemed like we have a pretty good relationship with them now, but this guy kind of threw like a wrench in it last spring. They didn't care about our lake before, but now that the walleyes are back, ‘Okay,' they said, ‘All right, Red Lake, you don't own that lake. You own the land under the lake.' Uh, okay? Well, they were citing some kind of court case in Montana, but those people in Montana they allotted their land. So it was more of a waterways issue. We talked about it and we said, ‘Well, Red Lake's totally different than that tribe. We own our land. And they said, ‘Well, I'm going to bring a bunch of people over there and we're going to fish on your lake.' I'll tell you, a lot of people at home said, ‘Well, bring it on.' There's going to be -- we're going to fight for our land again. If it comes to that, that's what's going to happen. But it never did. But just that part of it, we have to always be on our toes as Indian people because there's always somebody out there that wants our land. They put us on land that they didn't think anybody wanted. But it's our land and we've got to take care of it.

This guy -- I had an old man call me one time, he was an older fellow, a white gentleman and he said -- I got this call at my office --and he said, ‘Yeah, you know, I don't like that that you guys took this boat away from this guy 'cause he went across the line and then you guys had machine guns in there. The game wardens had machine guns.' And I said, ‘Well, they weren't machine guns. They were issued arms for their work. You guys were a mile onto our land. You knew where the -- we put GPS -- they had GPS ratings with the state and all this stuff. And they knew where they were at, but yet they came on to Red Lake to fish. So our game wardens had time to go all the way to Red Lake, which is about 40 miles away from the Upper Red Lake, get their boat, come back and them guys were still fishing on our side of the lake.' And this old guy tells me, he says, ‘Oh, I don't think -- then that plane. You guys kept that plane.' I said, ‘Well, we didn't keep the plane. We gave the plane back.' I said, ‘I just want to say something to you.' I said -- I was trying to do it in kind of laymen's terms and be nice to him too, but I said, ‘If you owned 100 acres and you had four or five really nice bucks on your land and I knew about it. And just before deer season I came over and shot all four of those deer...' I said, ‘How would you like it?' ‘Well, I wouldn't like it,' he said. ‘Well,' I said, ‘it's the same thing here.' I said, ‘We own this land. It's not owned by the state. It's not owned by the government. It's owned by the Red Lake Band of Chippewa.' I said, ‘We all own it in common.' He said, ‘Well, I kind of understand now.' I said, ‘But one of the things that I think a lot of people don't understand is that they think that no matter what it's everybody's land, but it's not.' That's one of the things that's unique about Red Lake. And like I said, the chiefs for -- they had some real good insight to keep that land for us. And we have to -- we, as a council and people, have to protect that [because] that's our land.

I think one of the things I forgot to say earlier was that the tribe recently served notice to the Secretary of the Interior that they will no longer abide by the federal regulations governing the fishery. We are going forward and determine our own quotas. Every year it'll change depending on how many fish we have in the lake. It'll no longer be -- we won't have to go see Big Brother to say, ‘Hey, is it all right to go and take some of our own fish? Can you guys sign off on this?' I think one of the things I always laugh about, at the DNR when we went Self-Governance, they kept one person there to sign off on things. The guy didn't, the guy really didn't like what I said to him, but I always told him, ‘Oh, yeah, we better get our Indian agent in here so we can make sure that we're doing things the right way.' He didn't like that. That's about all I've got to say. Thanks."

Alfreda Mitre:

"Thanks, Al. One of the recurring themes that you're going to see throughout the symposium here is -- that's going to make this symposium a little bit different is -- the love of the land. We are who we are because of the land. The only thing American about America is us. Everything else was imported into this country and I think that's important. You can see, and you'll probably see throughout the symposium, the love for the land inspires the programs that are put forth to Honoring Nations. No one can tell our story better than we can. When westerners do something in their neighborhood that they don't like, they can move to another city, they can move to another town, they can move to another neighborhood. We are truly connected to the land and therefore no one could love the land or protect it better than we can. So that's going to be a recurring theme, and I want to again thank you all."

Strengthening the role of Native CDFIs: A conversation with Gerald Sherman of the Native CDFI Network

Year

Roughly 8 percent of the 917 community development financial institutions (CDFIs) in the U.S. are categorized as Native CDFIs (NCDFIs), which means they serve primarily American Indian, Alaska Native, or Native Hawaiian communities. Due to a mixture of historical, political, and geographical factors, these communities tend to face profound challenges: high rates of poverty and unemployment; lack of physical, legal, and telecommunications infrastructure; and limited access to affordable financial products and services, to name a few. NCDFIs are working to change the landscape by filling credit and capital gaps and providing Native consumers, entrepreneurs, and potential homebuyers with needed information and training to access traditional lenders...

Native Nations
Resource Type
Citation

Kokodoko, Michou. "Strengthening the role of Native CDFIs: A conversation with Gerald Sherman of the Native CDFI Network." Community Dividend. January 30, 2015. Blog. (https://www.minneapolisfed.org/article/2015/strengthening-the-role-of-native-cdfis-a-conversation-with-gerald-sherman-of-the-native-cdfi-network, accessed January 22, 2024)

Credit union has grand opening at Fortune Bay

Author
Producer
Mesabi Tribune
Year

Banking will be much more accessible for Bois Forte Band members with the opening of the Northern Eagle Federal Credit Union. The non-profit institution celebrated its grand opening Monday at its Vermilion branch, located at Fortune Bay Resort Casino near Tower. Northern Eagle’s main branch is at the Bois Forte Government and Government Services Center in Nett Lake...

Resource Type
Citation

Riebe, Angie. "Credit union has grand opening at Fortune Bay." Mesabi Daily News. January 13, 2014. Article. (http://www.virginiamn.com/news/business/article_f6be05da-7ccc-11e3-aac9-..., accessed March 29, 2023)

How Tribal Leaders Are Creating Jobs

Producer
Indian Country Today
Year

The New Markets Tax Credit (NMTC) has provided a vital spark to infrastructure and economic development projects across Indian country. Momentum has been building over the past several years but because of recent federal agency actions, and now tax-related Congressional bickering, it is in danger of petering out.

Out on the prairie, the skyline of Winnebago, Nebraska continues to grow. That is because the Winnebago Tribe is constructing a new multi-million-dollar educational center. This is a major achievement for a community in great need. Any other rural community might have issued bonds based on local property tax revenues to construct a critical community asset like this. But of course tribal governments cannot levy real property taxes. As such, NMTC-backed financing helped make this project a reality...

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Citation

Morgan, Lance and Gabriel S. Galanda. "How Tribal Leaders Are Creating Jobs." Indian Country Today. October 15, 2013. Opinion. (https://ictnews.org/archive/how-tribal-leaders-are-creating-jobs, accessed July 18, 2023)

Credit union opens new doors at Pine Ridge

Producer
Indianz.com
Year

In only nine weeks since it opened, the Lakota Federal Credit Union has attracted 317 members, and $1.2 million in deposits. “We have already approved $100,000 in loans, and that has been by word of mouth. It’s been huge,” Tawney Brunsch, executive director for the Lakota Funds, announced. Brunsch said that she saw the need for a credit union almost as soon as she started at Lakota Funds. “I was surprised by the loan payments coming in as cash, and a big chunk of them were, because there were no other banks on the rez.” Without a reservation-based bank, people were forced into taking predatory loans through car title lenders and pay day loans that charged exorbitant rates. Brunsch said that most people in Pine Ridge were not brought up with banking and were unaware of the cheaper options available to them...

Native Nations
Resource Type
Citation

Rose, Christina. "Credit union opens new doors at Pine Ridge." Native Sun News. February 18, 2013. (http://www.indianz.com/News/2013/008565.asp, accessed April 3, 2023)

Four Bands Community Fund

Producer
Bush Foundation
Year

As a nonprofit organization and a Native community development financial institution (CDFI) certified by the U.S. Treasury, Four Bands Community Fund continuously strives to achieve its mission of creating economic opportunity by helping people build strong and sustainable small businesses and increase their financial capability. With over a decade of experience working in a rural, economically distressed area, Four Bands Community Fund has created a suite of products and services designed to revive traditional culture that supports self-sufficiency, healthy family and community structure, and a thriving economy.

Citation

Bush Foundation. "Four Bands Community Fund." Bush Prize for Community Innovation. Bush Foundation. Saint Paul, Minnesota. 2013. (https://www.bushfoundation.org/grantees/four-bands-community-fund-29279, accessed May 5, 2023)