Page 14 - November report 2023

ENTREPRENEURSHIP SCHOLARSHIP REPS’ MEETING REPORT (2)
Sherry then introduced Pete Upton, CEO and Board Chair of the Native CDFI Network (NCN). He is also the Executive Director of the Native 360 Loan Fund, which serves 3 states (Nebraska, Iowa and South Dakota) and focuses on entrepreneurship and financial literacy development for Indigenous Peoples. He also worked with Wells Fargo to set up scholarships for Native business students.
Pete explained that NCN is involved in advocacy to ensure a continued national perspective for NCDFI policy discussions. NCDFIs are important for many reasons. Today, 86% of Native communities lack a financial institution within their borders. Every $1 invested in a NCDFI creates $8 of private sector investment through feedback loops in the economy. Though the number of NCDFIs is growing, it barely scratches the surface of capital needs in Indian Country. According to a survey of NCDFIs conducted in 2021, the unmet need is roughly $85 million – and that is a conservative estimate. The unmet capital need of NCDFIs required to meet their clients’ small business, consumer and related lending needs is $166 million.
He explained that NCN is interested in the careers that are going to be developed from an allocation of $14 billion in federal dollars through the Greenhouse Gas Reduction Fund (part of the Inflation Reduction Act). It is hoped that a significant portion of that funding will flow through NCDFIs to many Native businesses involved in green energy projects. College students will be needed to serve as interns and to take on other roles as business leaders in their tribal communities.
Angelique thanked Pete for his presentation and facilitated the questions and discussion generated by his information. Angelique started by reminding the participants that their students will not only be the business leaders of their communities, but also the tribal leaders and leaders in non-profits. Pete said he hears stories of college students who come home after graduation to find there is limited housing, and many of these new grads want more than just a livable wage. He said there are many ways NCDFIs and higher education can collaborate, and he offered to put people in touch with the NCDFIs in their region for more information.
Many of the questions were focused on ways to bring the NCDFIs’ wealth of knowledge to students. A question was asked about whether students could take out a loan to start a business. Pete said he thought it might be possible. He said that many NCDFIs are relationship lending institutions rather than transactional ones. This led to another question: would NCDFIs lend to student entrepreneurs from other academic areas, such as those working in healthcare or food sovereignty? He said that could be a possibility as well.
Sherry noted that some NCDFIs have been expanding their reach beyond reservations. They serve tribal members wherever they are located. The discussion concluded with some of the representatives of TCUs and Native-serving institutions saying they would be willing to offer degrees and programs that will produce students to meet the growing need, but they will need time to ramp up their offerings.
INDIVIDUAL SCHOOL SHARING
Representatives from each school reported on the scholarships given to their students this past year and their work towards distributions this year. They use a variety of methods regarding the awardees:
• For most schools, one or two people are reviewing applications and making the decisions
• Several schools use a committee within their business department
• One school has a selection committee of 6 professors & staff, primarily Indigenous
• One school actually pre-qualifies all students who are eligible, and then sends out e-mails recommending they apply
• Most schools vary the amounts of the awards though some give a flat amount to everyone
• All recognize returning students with either a continuation of the award or an actual renewal application
Page 12 November Report