Navajo Nation’s $7 Million Loan Surge Set to Transform Tribal Economy

The Navajo Nation is celebrating a new loan program that hopes to bolster small businesses and the wider economy across the tribe, according to a recent announcement from the tribe’s president. 

$7 Million Loan Program

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Buu Nygren, the president of the Navajo Nation, has announced plans to launch a $7 million loan program for Navajo small businesses and entrepreneurs, with the hope of bringing much-needed growth to the tribal community.

Signed Agreement 

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An agreement was signed between the Navajo Small Business Credit Initiative and Change Labs, an innovative business accelerator based in Tuba City, Arizona, home to the tribe’s most populous community. 

Three-Way Venture

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The new initiative will be a joint venture carried out between the Navajo Division of Economic Development, the Navajo Chamber of Commerce, and the Navajo Regional Business Development Office.

Looking to the Future

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“I am really looking forward to small businesses thriving, new ones starting, changing existing ones from feeling they were forgotten,” said President Nygren. 

“Changing the Narrative”

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“We want business to grow and become bigger, to hire more people. We’re trying to change the narrative by investing in our own communities.” 

Applications Open

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The program will come in the form of two different loan programs, and applications are already open for eligible small businesses. Business owners must be enrolled as members of the Navajo Nation to be eligible for funding. 

Processing Beginning This Month

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Application processing through the loan participation program will begin this month, but applications for small businesses will remain open until 2027.

Very Positive Projections

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According to Heather Fleming, executive director for Change Labs, the organization expects the funding to reach over 100 Navajo small businesses, providing loans of varying sizes.

Loans for 180 Borrowers

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“With the ($7 million) in loans for Navajo businesses, we’re anticipating serving approximately 180 Navajo borrowers with loans as small as $10,000 and as large as $1 million,” she said.

Some Specific Industries Expected

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In particular, the organization anticipates working with business owners in the food industry, construction firms, non-profit organizations, and creative industries, including independent artists.

Mentorship and Training Offered

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Change Labs won’t just be processing and disseminating funding to small businesses – it will also offer mentorship and training to help tribal members scale up their operations and launch new businesses.

Part of a Larger Federal Fund

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Funding has been allocated from a larger 10-year plan funded by the federal government’s State Small Business Credit Initiative, which has allocated $87 million to Diné business owners.

Largest Federally Recognized Tribe

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It is a significant announcement for Navajo business owners, and the tribe at large. With almost 400,000 enrolled members of the Navajo Nation, it is the largest federally recognized Indigenous tribe in the United States. 

More Than 5000 Small Businesses

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With funding for 180 borrowers expected, business owners will likely be scrambling to apply for funding. According to Tony Skrelunas, director of the Navajo Division of Economic Development, more than 5,000 small businesses are currently operating across the Navajo Nation.

Keeping Money Local

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Skrelunas also emphasized the need for business funding to help diversify the Navajo economy, and to keep money circulating within the tribe’s own communities rather than going to businesses elsewhere.

They Really Work

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“These guarantee programs have been shown to really work,” he said, referring to past federal loan programs that have been secured by the tribe.

Nygren Under Scrutiny

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Navajo leaders, small business owners, and other members will be paying close attention to the economic impact of the funding and its execution by President Nygren, who has already been subject to personal criticisms and scrutiny in recent months.

Sexual Harassment Allegations

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Back in May Nygren was accused of sexually harassing his colleague, Vice President Richelle Montoya, during a staff meeting in August 2023. She claimed she received unwanted physical touch and inappropriate questioning about her romantic life by Nygren following her divorce from her husband. 

Outright Denial

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In a news conference in May Nygren strenuously denied any sexual harrasment, instead claiming that he had only enquired about her marriage and hugged her as a means of offering support. 

“Deeply Offended and Disappointed”

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“There was no assault, and there was no sexual content or advances of any nature. I am deeply disappointed and offended that this interaction has been taken out of context. It was only out of concern for her wellbeing,” Nygren said.

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