Funding Sources for Tribal Economic Development
Primary Funding Sources
Tribal propane businesses and other economic development activities can be funded through a mix of government and private grants, loans, tribal capital, private investments, and tax incentives. Federal agencies like HUD and EDA offer specialized programs for tribal entities. Tribes can also leverage existing revenue streams to access additional capital through “capital stacking,” combining multiple funding sources for large projects like healthcare facilities, infrastructure, and land purchases.
Native Financial Institutions
Native financial institutions, including Community Development Financial Institutions (CDFIs) and Community Development Corporations (CDCs), address limited access to capital on Native lands.
- CDFIs provide financial services in underserved areas, with at least 50% of activities supporting Native communities.
- Examples: Lakota Funds (South Dakota), Indian Land Capital Company (Minnesota).
- CDCs focus on revitalizing underserved areas through affordable housing, community health, and education.
- Examples: Citizen Potawatomi CDC (Oklahoma), Native American Development Corporation (Montana).
Native Credit Unions and Banks
Located near reservations, these institutions offer loans, credit-building programs, and financial literacy education, reducing reliance on high-risk lending.
Tribal Economic Development Departments
Economic Development Corporations (EDCs) provide services such as grants, loans, and tax-exempt bonds to foster business growth and support community initiatives.
Federal Funding
Federal programs (Table 1) from agencies like FEMA, EPA, and DOE offer funding for economic development. See below for selected grants from Table 1 that offer strong potential. Note that navigating the federal grant process can be complex, requiring professional expertise or additional staff to improve success rates.
- US Dept of Health and Human Services – Social and Economic Development Strategies (SEDS) Grant for community-driven projects designed to grow local economies. Typical amounts $100,000 – $400,000
- US Dept of Housing and Urban Development – Indian Community Development Block Grant for housing, community facilities, and other economic development activities. Typical amounts $500,000 – $1.2 million
- US Economic Development Administration – Public Works and Economic Adjustment Assistance Grant for a wide range of technical, planning, public works and infrastructure assistance. Typical amounts $100,000 – $30 million
Other Considerations
While combining funding sources (“capital stacking”) is effective, it may increase administrative demands. Tribes may need expert assistance to streamline efforts and maximize opportunities for community growth.
Source: “Community Economic Development in Indian Country: Market Research Report”, Prepared by: Kevin Klingbeil, Chloe Adler, Harry Maher, and Devoni Whitehead of Big Water Consulting, Nancy Pindus and Amanda Hermans of Urban Institute, August 2023
Return to the Tribal Propane home page
Learn More
If you would like to learn more about funding options enabling your tribe to create a lucrative propane business that generates new revenue, creates jobs and saves money, then please fill out the form below or call us direct at 800-632-2038.
