• Share. Provide timely update on COVID-19 related impacts to Native CDFIs through weekly web call. Purpose • Learn. Gain valuable feedback from membership • Connect. Provide a space for NCDFIs to connect in these challenging times
NCN is stronger if individual members are stronger.
• Acknowledgement • Legislative & administrative updates • New PPP bill Agenda • Comments open for CDFI Fund • NACA Appropriations • Featured guest – Elsie Meeks • Q&A • NCN Regions Discussion Follow Up
PPP Changes & Deadlines • Extended expenditure period. The new period will be 24 weeks or the end of the year; previously it was 8 weeks. • More non-payroll expenses to be forgiven. Previously, 75% of loan had to be used for payroll costs, now lowered to 60%. • Extended time for repayment of loans (if not forgiven). Changed repayment time to 5 years; previously was 2 years. • Additional time to rehire workers. New deadline to rehire workers is December 31, 2020; previously was June 30. • Flexibility if reduced FTEs. If a borrower’s FTE employees decline in the covered period, they can avoid proportional reduction in forgiveness if: • They have employees leave and can’t replace them with similarly qualified employees. • The organization is unable to return to the same level of business activity that existed before 2/15/2020 due to complying with regulatory guidance from federal agencies related to sanitation, social distancing and other COVID-19-related safety measures. • Final Deadline for PPP SBA Approvals. June 30. • Most lenders have earlier internal deadlines.
NACA Update • House Approps Moving Forward • Nita Lowey, House Approps Financial Services Chair said, • “I intend to hold all subcommittee and full committee markups the weeks of July 6 and 13. Further, I expect spending bills could be on the floor the weeks of July 20 and 27.“ • NCN sent a letter in February calling on $30 million in NACA funding
Administrative Update • CDFI Fund • Comments on CDFI Equity investments – Due July 8, 2020 • Data released on CDFI Fund Applications & NACA • 30 organizations requested $23.5 million in NACA Program Base-FA awards. • 28 organizations requested $4.1 million in NACA Program TA awards. • PPP • No response written response from Treasury or CDFI Fund regarding the NCN/NCAI/NAFOA letter, or the bipartisan House letter
Bipartisan Letter in Support of Native CDFIs & PPP Eligibility
Congressional PPP Letter • The letter stated that some " Native American CDFIs... have been denied PPP funding based on an erroneous or misguided application of existing Small Business Administration (SBA) regulations." And further noted, "we were concerned to hear that, despite the broad statutory applicability in the CARES Act, certain SBA staff have determined that as “financial businesses primary engaged in the business of lending” (13 C.F.R. §120.110(b)), CDFIs do not qualify for the PPP, even though the CARES Act explicitly allows nonprofits and all tribal business concerns within size restrictions to participate in the PPP." The letter was also signed by the Arizona House Congressional delegation and several leaders of the House Native American Caucus. The signatories were Representatives Greg Stanton (AZ), Ruben Gallego (AZ), Tom O'Halleran (AZ), Raul Grijalva (AZ), Ann Kirkpatrick (AZ), Deb Haaland (NM), Tom Cole (OK), Paul Gosar (AZ), Earl Blumenauer (OR), Sharice Davids (KS), David Schweikert (AZ), Suzan DelBene (WA), and Kendra Horn (OK).
Special Guest: Elsie Meeks • Chair, Board of Trustees Native American Agriculture Fund • Board Member of the Federal Home Loan Bank of Des Moines; • Former State Director, USDA, South Dakota Rural Development; • Former President & CEO of First Nations Oweesta Corp. • Board Chair, Lakota Funds • Former Executive Director Lakota Funds • First Native American to Serve on Commission for Civil Rights • Rancher • Raised on Pine Ridge Reservation, member of the Oglala Sioux Tribe
Discu cussion wit with Els lsie ie Meeks
Background Regional Maps - April 10 web call, “NCN is planning regional pods to better share information locally”
Regions • Alaska Region - representing members located in the state of Alaska • Pacific Region – representing members located in the states of California and Hawaii • Southwest Region - representing members located in the states of Arizona, Nevada, New Mexico and Utah • Northwest Region representing members located in the states of Idaho, Oregon and Washington • Southern Plains Region - representing members located in the states of Kansas, Oklahoma and Texas • Great Plains Region - representing members located in the states of Iowa, Nebraska, South Dakota and North Dakota • Midwest Region - representing members located in the states of Minnesota and Wisconsin • Eastern Region- representing members located in the states of Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Ohio, Pennsylvania, New Hampshire, New Jersey, New York, North Carolina, Rhode Island, South Carolina, Tennessee, Vermont, Virginia and West Virginia • Rocky Mountain Region - representing members located in the states of Colorado, Montana and Wyoming.
Region Active NCN States Alaska 3 Alaska Southwest 5 Arizona, Nevada, New Mexico and Utah Pacific 3 California, Hawaii Northwest 7 Idaho, Oregon and Washington Rocky 4 Colorado, Montana and Wyoming Mountains Great Plains 8 Iowa, Nebraska, South Dakota and North Dakota Southern Plains 3 Kansas, Oklahoma, Texas Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Ohio, Pennsylvania, New Hampshire, New Jersey, New York, North Carolina, Rhode Island, South Carolina, Tennessee, Vermont, Virginia and Eastern 5 West Virginia Midwest 8 Minnesota, Wisconsin
Purpose Ensure inclusive national voice. • All regions will be represented in committee priority setting. Strengthen local advocacy. • Increased coordination locally, at state levels, response to regional issues. Increase regional capacity building. • Will allow for increased ease of planning local training. Plan to hold regional meetings Support fundraising on a local level. • Will assist with coordinating local fundraising initiatives with regional philanthropists, social impact investors, banks.
Sc Scope • Near term: committees. Initial regional group development is designed specifically for committee support, input, and direct feedback for the following committees: • Policy Committee • Organizational Development Committee • Long run: entire organization. In the long term, there is value to have regional representation on the NCN Board of Directors, much like similar organizations such as the NCAI. This long term vision will not be implemented without first review at the NCN Committee level.
Next Steps 30 Days 60 Days 90 Days 1 year 5 years Arrange and begin Finish regional Finalize regions Present Implement regional planning planning meetings and meet at 2020 recommendations regional board meetings Policy & Capacity for improvement member Complete regional Building Summit representation. Begin identifying representation for Implement regional Policy and Org. Announce recommendations Consider creating representation for Development regional for improvement related Policy and Org. Committees representation for of regions map & committees Development Policy & Org. scope Committees Development Committees
Additional questions, comments, and discussion • Have you accessed the PPP? • Some CDFIs have been advised to keep funds in escrow. • Have any of your lending portfolio companies accessed the PPP? • Challenges?
https://muidmn.org/healingfund
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