Independent Banker - August 2018 - 95

Trailblazer
Building a path to
economic success
Native American Bank is a CDFI and the only
national American Indian-owned bank in the
country. At its heart is a mission to help native
peoples succeed. By Jolene Johnson
hile it's true that some Native American
communities-such as the Shakopee
Mdewakanton Sioux Community and the Prairie
Island Indian Community in Minnesota-experience
financial success through the operation of
casinos, most do not.
" Most tribes are rural, and if they have a casino
it may break even; it may make them a little bit
of money, " says Thomas Ogaard, president and
CEO of Native American Bank, which is based
in Denver. " But the vast majority of tribes don't
have that opportunity. "
Name:
Native
American Bank
Asset size:
$104 million
Location: Denver
The reality is that
many Native Americans
don't have
access to financial
capital and services,
which can be a
roadblock to financial
freedom and self-sufficiency.
So, nearly 20 years ago, then-Sen. Daniel Inouye
from Hawaii worked with Native Americans,
particularly tribal elder, activist and banker
Elouise Cobell, to receive the charter for the
holding company for Native American Bank. The
result? In 2001, 20 tribal nations and Alaska Native
Corporations started Native American Bank
to provide access to financial services and opportunities
for individuals and communities in Indian
country. Today, that includes 573 federally
recognized tribes in the United States, as well as
Asian Pacific Islanders in Hawaii.
Individual tribes operate as sovereign nations,
Quick stat
573
Number of
federally
recognized
tribes in the
United States
W
much like states do, so it can be a challenge to
navigate the laws and codes of each one. To meet
this challenge, $104 million-asset Native American
Bank enlists the community's help, including
a tribe's leaders and economic development
corporation, as well as legal representation wellversed
in tribal laws.
All the hard work is paying off.
A lending hand
Native American Bank has completed or is in the
process of completing projects in about 20 states.
" We do primarily commercial lending in an effort
to bring additional economic opportunity to reservations, "
Ogaard says.
In 2017, the bank had nearly $150 million in
its loan pipeline throughout Indian country. On
average, Ogaard says a commercial project may
run between $4 million and $6 million. Projects
include non-gaming hospitality projects (such as
hotels), convenience stores, fast-food restaurants,
grocery stores, movie theaters and more. These
commercial projects not only provide a good
source of revenue for a tribe but also help create
jobs and sustain existing jobs in the community.
Some of these projects couldn't get funding
elsewhere. For example, a tribe in rural Alaska,
where snowmobile, four-wheeler and small-plane
commuting is common, operated a small general
store in need of expansion. This would allow it to
store items in greater quantities, resulting in better
prices for community members. " We stepped
in and provided the financing, " Ogaard says.
Native American Bank worked with a tribe in
northern Minnesota that has started to build a
grocery store in an area that's considered to be
a " food desert. " Currently, the nearest grocery
store is some 30 miles away. Tribes are also acquiring
businesses off the reservation to further
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Independent Banker - August 2018

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