During the fiscal year 1970, estimated financing for Indian individuals and enterprises jumped from $382.9 million to $437.7 million -- a $54.8 million increase over the previous year, according to a report released today by Commissioner of Indian Affairs Louis R. Bruce.
The borrowed monies financed construction of thousands of new homes and rebuilding or repair of existing homes; provided funds for Indian education in technical schools and colleges; and stimulated Indian small business and development of cooperative enterprises such as cattle ranching.
Productive-type loans -- that is, those that generate income -- increased in 1970 over the previous year, with a commensurate decrease in loans for non-recoverable items. Refinancing also decreased slightly in the same period, indicating somewhat more financial stability among an increasing number of Indian families and enterprises.
Full-blooded Indians received nearly 60 percent of the loans in 1970, and 50 percent of the total amount loaned.
Private and public lending institutions provided 67.2 percent of the Indian financing last year, with tribal funds accounting for another 26.9 percent, and with 5.9 percent deriving from a Bureau of Indian Affairs revolving loan fund.
The largest percent increase over 1969 was in financing by, customary lenders. Federal credit agencies provided $91.8 million; national and state banks $50.09 million; and consumers' credit sources.
The amount of tribal funds being used for financing economic development for Indian tribes or individuals has doubled during the past five years, the report also states -- from $57.6 million to $117.7 million.
Credit and financing operations of some Indian tribes are conducted entirely with tribal loans to members and associations of members, and to finance tribal, industrial, commercial, and agricultural enterprises.
"The doubling of Indian input indicates the extent to which Indian communities can help themselves if they are given minimum Federal aid," said Commissioner Bruce.
"But," he added, "Modern American Indian communities need an additional $1 billion in credit to make them viable components of the nation. Most of this deficit cannot be met by private lenders unless they are given some incentives to furnish the money, because of the trust restricted title to Indian lands and the underdeveloped conditions of some reservations. Incentives could be in the form of loan guarantees or loan insurance and interest subsidies."
Legislation that would enable more credit to be extended to Indian communities has been introduced into the 92nd Congress. Similar bills failed passage in the 88th, 89th, 90th, and 91st Congresses. If enacted, legislation now under consideration would increase the BIA revolving loan funds as well as establishing substantial loan guaranty and insurance funds.
Copies of the Bureau of Indian Affairs "1970 Annual Credit and Financing Report," 45 pages, are available without charge from the Bureau of Indian Affairs, U. S. Department of the Interior, 1951 Constitution Avenue, N.W., Washington, D. C. 20242.
