Lending in Native American communities
Economic development activities take place in communities of every
size and description, from the largest cities to the smallest rural
towns. No matter where development takes place or what population
it affects, it depends on funding for its support. In many cases,
lending is the primary vehicle for delivery of development funds.
In this issue of Community Dividend, we focus on aspects
of lending, with a special emphasis on lending in Native American
communities. As in other communities, reservation-based business
owners often face barriers to obtaining start-up or expansion financing.
To counter this problem, some Indian Country communities have established
community development loan funds.
The Lakota Fund, the focus of our cover story,
is a perfect example. Established 14 years ago in response to depressed
economic conditions on the Pine Ridge Indian Reservation, the Lakota
Fund is now an instrumental part of the community’s development
infrastructure. Our story discusses the lessons learned from the
fund’s lending activities and the accompanying photos depict some
of the fund’s success stories.
The discussion continues in "A
Conversation with . . .," featuring Lakota Fund Executive
Director Elsie Meeks. In our interview, Meeks explains the challenges
faced by small businesses in Indian Country and offers advice to
help lending institutions become involved with Indian Country loan
funds.
Expanding on the theme of Indian Country lending, a feature in
this issue revisits 1999’s "Walking
the Native Path: Seeking Solutions Through Economic Development
and Housing Opportunities" conference, cosponsored by Community
Affairs. The article discusses the feedback received from attendees
and reports on development activities that grew from the information
provided in conference sessions.
A special feature in this issue explores lending
from the consumer’s point of view. The article explains how
loan-pricing models are used to determine interest rates for commercial
lending. An awareness of these models can help consumers understand
how their credit histories affect the lending process.
Finally, we round out the issue with a feature on a special happening
in Community Affairs: a July tour of St. Paul’s developing Phalen
Corridor area, arranged for Federal Reserve System Governor
Edward Gramlich.
We hope the information presented in this Community Dividend
will enhance your understanding of community development.
—JoAnne F. Lewellen
Federal Reserve Bank of Minneapolis
|
Annual Report
