Urgent Warning: Proposed U.S. Treasury Deadline Change Threatens Tribal Small Business Funding

Deadline Change Threatens Tribal Small Business Funding, Advocates Warn

Washington, D.C. — A national Native American financial advocacy group is sounding the alarm over a proposed change by the U.S. Treasury that could significantly disrupt tribal governments’ ability to deploy crucial federal funds for small business lending.

In a policy bulletin released on Friday, the Native American Finance Officers Association (NAFOA) revealed that Treasury officials are considering moving the expenditure deadline for tribal participants in the State Small Business Credit Initiative (SSBCI) from October 2026 to November 2025. This change would effectively cut nearly a year from the time tribes have to utilize their allocated funds.

NAFOA, based in Washington, D.C., reported that it learned of the potential deadline shift during discussions with Treasury officials and tribal leaders. The organization emphasized that this acceleration is part of the administration’s broader evaluation of its priorities and funding alignment.

The proposed change could have far-reaching implications for the over $523 million in SSBCI capital designated for 235 tribal governments under the 2021 American Rescue Plan. Notably, 48 of NAFOA’s 185 member tribes have already received SSBCI funding, totaling nearly $369 million.

In a letter addressed to congressional leaders on Thursday, NAFOA President Rodney Butler expressed grave concerns about the potential consequences of this deadline change. Butler, who chairs the Mashantucket Pequot Tribal Nation, stated that the adjustment could have “severe consequences” for both tribal governments and Native-owned businesses.

Most tribes received their initial tranche of SSBCI funding in the fall of 2023, which established a three-year statutory window to deploy at least 80% of those funds before seeking additional funding. However, many tribal programs have only managed to spend 20% to 30% of their initial allocations as they work to build lending systems and identify small businesses in need of support.

The SSBCI program, originally established in 2010 in response to the financial crisis, aims to expand access to capital for small businesses by providing funding to states, territories, and tribal governments. Participating tribal governments can design their own lending programs through partnerships with banks, credit unions, and Native community development financial institutions.

“This dramatic shift would jeopardize one of the most significant capital access programs ever available to Indian Country,” NAFOA stated in its bulletin. “Prematurely recapturing these funds would deprive Tribal governments, Native Community Development Financial Institutions, and Native-owned businesses of essential capital at a crucial stage of development.”

In light of these developments, NAFOA is urging tribal leaders and community members to reach out to Congress in support of retaining the original October 2026 deadline.

As the situation unfolds, the Treasury Department has yet to confirm whether it is indeed considering changes to the tribal SSBCI expenditure deadline.

For further updates, stay tuned to Tribal Business News.