Montana Indian Equity Fund Launches its Third Year of Grants for Indian Business Owners

The Montana Department of Commerce announced that the Montana Indian Equity Fund http://tribal.mt.gov/docs/IndianEquityFundGuidelinesApplication.pdf applications are now being accepted. The grant is open to enrolled members of Montana Tribes. Two recipients from each of the Tribes may receive up to $7,000 each to fund either a business startup or to grow their business.

The Montana Indian Equity Fund is a state-funded program administered by the Montana Department of Commerce. Funding is utilized from the Indian Country Economic Development program (ICED) via the recommendation of the State Tribal Economic Development Commission (STED) and the approval of the Director of Commerce.

The application period closes December 1, 2008.

“The Montana Indianpreneur Equity Fund is about empowerment,” said Governor Brian Schweitzer. “This fund is an outlet to help Indian business owners achieve their goals and enhance their communities. Each success story will add to the momentum of economic change in Indian Country.”

Unlike non-native small business owners, traditional forms of equity from home ownership, family and friends are often not available to the Indian business owner for various economic reasons. The Fund is a grant to assist a current Native American business or a new Native American business owner. This money can be used for a variety of activities such as the purchase of new equipment or the development of a new product line. The fund requires a minimum of dollar to dollar match which may include collateral such as cash, in kind, or loan funds such as a tribal loan fund, a micro loan program, or a commercial lender. Examples of in kind match may include inventory, supplies, equipment, tools or vehicles that are part of the activity of the business.

“This equity fund is a solution for tribal members who have been interested in starting a business, but haven’t had the funds to get them on the right track,” said Anthony Preite, Director of the Montana Department of Commerce. “The beauty of the Equity Fund is that it’s flexible enough to accommodate new and growing businesses and funds will be leveraged with other monies or investment to create the maximum benefit.”

This year, the Department of Commerce and State Tribal Economic Development Commission has made $119,000 in Indian Country Economic Development (ICED) monies available for the Fund. During the first two years of the program, the Montana Department of Commerce and State Tribal Economic Development Commission provided $126,000 to fund a total of 18 business owners. This funding was leveraged with over $505,313 in loans from the private sector.

For more information regarding the fund or to request an application, please contact the program manager at the Montana Department of Commerce, Philip Belangie, [email protected] or (406) 721-3663.