The Sequoyah Fund received notice today that the organization will be receiving a $665,500 federal grant to expand lending and training on and around the Qualla Boundary. This grant comes from the CDFI Fund, a division of the U.S. Treasury.

The Sequoyah Fund is a Native CDFI (Community Development Financial Institution) that serves the Eastern Band of Cherokee Indians and the seven far-western counties of North Carolina. Based in Cherokee, The Sequoyah Fund offers start-up and expansion loans to small businesses that are not otherwise eligible for bank loans or other investment capital.

“As a Native CDFI, we are able to apply for up to a million dollars per year from the CDFI Fund, and these grants do not require matching funds,” says Executive Director, Russ Seagle. “These funds go directly to provide loans and services our small business community requires.”

While there is a small portion of the grant allocated for operating expenses, the vast majority (85%) goes directly toward lending and training for small businesses that drive the local and regional economy, provide employment, and increase economic opportunity for people who would otherwise not qualify for a bank loan.

“The types of loans we make are considered ‘Patient Capital,’ because we are generally more flexible than traditional lending sources,” says Seagle. “Just because someone doesn’t qualify for a bank loan doesn’t mean they’re a bad person or their business idea isn’t any good. It may simply mean bank policy prohibits lending to them – especially in the case of start-ups. They’re riskier, and banks tend to shy away from them.

This grant also includes funding for a pilot program called “PEER” (Promoting Entrepreneurship to End Recidivism). PEER will involve Sequoyah Fund, Analenisgi, EBCI Drug Court, and Juvenile Justice personnel to provide entrepreneurship training and small loans to help at-risk young adults find economic opportunity as an alternative to drug abuse and criminal behavior. The CDFI Fund requires new programs that are successful in local pilot phases be scalable and applicable to other areas. Says Seagle, “We hope that, if PEER is successful here, we can create a playbook that will be useful for other tribes and communities across the country.”