Q:  What is a Native CDFI (NCDFI)?
A:  NCDFI stands for Native community development financial institution, which is an organization dedicated to providing development services (training and TA) and various types of financial services (checking, savings, consumer loans, business loans, housing loans, etc.) to Native communities encouraging them to become strong and self sufficient.  CDFIs include loan funds, banks, credit unions/associations and venture capital institutions.  Credit unions were among the first forms of CDFIs in this country going back to the early 1900s, modeled after efforts originating in Germany and England in the mid 1800s.  A Native CDFI (NCDFI) works for the betterment of a Native community and can be located anywhere there is a significant Native population, whether it is on a reservation (federally-recognized and non), in an Alaska Native village, across the Hawaiian Islands or in a metropolitan area anywhere in the 50 states or beyond – as long as the institution is truly serving that Native population.  Over the years Oweesta has more narrowly defined what a Native CDFI is by evaluating the level to which they assist the Native population and by its management/staff makeup.

Q:  How can I start a NCDFI for my community?
A:  A good first step is to look over our information and sign up for one of the training programs to determine if this is the right step for your community.  You can also work with the CDFI Fund on this process and apply for one of the Native CDFI start-up TA grants available through the Fund.  If you take these steps as you organize your group in your home location, the process of starting a NCDFI is not that difficult with the proper guidance.

Q:  Does the tribe have to start the NCDFI?
A:  While it is often an effort of the tribe to start a NCDFI and it is helpful to have the administrative and financial support of the tribe in the early years of a start up, it is not mandatory for them to be involved.  Many CDFIs around the country were simply started by a group of concerned citizens, business people, homeowners or a group of individuals living in a certain geographic area.  Most of the groups we help get started do work with the tribe in some fashion, either as a spin-off from a tribal department, a subsidiary of the tribe and/or a place where the tribe invests assets for the growth of the organization.  There could, however, be a grassroots movement to develop a NCDFI without the direct involvement of the tribe(s) for a local, regional or larger market.

Q:  How do I find money to start the NCDFI?
A:  There are many sources of funding for NCDFIs throughout the country, and organizations like Oweesta, NCCA, CFED, the CDFI Fund, USDA and others offer clear suggestions for what route(s) you might take.  Most of these same organizations also have money available in the form of investments and/or grants.  There are also many foundations with programs emphasizing Native economic and housing development projects.  Many groups with connections to their tribe have also received start-up funding from the tribe itself.

Q:  What kinds of topics do the training and TA programs at Oweesta cover?
A:  Oweesta focuses on building strong and viable Native CDFIs through training and technical assistance programs that include chartering and incorporation, infrastructure, governance, board/committee roles and responsibilities, capitalization, market study, loan and financing policies, etc.  We respond to specific requests for assistance at the local level, and adapt one-on-one sessions to specific needs of the organization and their stage of development.  We will also employ consultants or experts on staff for fieldwork with a particular client if necessary.