Secretary of the Interior Rogers C. B. Morton said today that the Administration will seek full funding of $80,000,000 for the Indian Financing Act approved by President Nixon April 12, 1974.
Secretary Morton said that although the Act was originally slated for only partial funding during this fiscal year, the President has determined that the Act's programs should be accorded a higher priority and be fully funded in Fiscal Year 1975.
"The Indian Financing Act has long been one of the Administration's II highest priorities and it was enacted in a form similar to the version proposed by the President in 1970," Secretary Morton said. "Therefore, at the direction of the President, full funding will be sought from Congress."
"I view the enactment of this proposal as the financial underpinning of the Administration's pledge to pursue a policy of Indian self-determination since the ability of the American Indian to shape his own future and to assume control of Federal programs created for his benefit bears a significant relationship to the strength of his economic base," Secretary Morton said.
The proposal for full funding is contained in an amendment to the fiscal year 1975 budget, which has been submitted by the President to the Congress for appropriation consideration. The amendment proposes appropriations of $50,000,000 for direct revolving fund loans to Indians, $20,000.000 for a loan guarantee and interest subsidy program, and $10,000,000 for Indian business development grants.
The legislation consolidates existing Indian revolving loan funds already administered by the Bureau of Indian Affairs and authorizes the appropriation of an additional $50,000,000 for the consolidated fund from which direct Federal loans will be made to Indian organizations and individuals.
The legislation also creates a new Indian Loan Guaranty and Insurance Fund under which loans made by private lenders to Indian tribes or tribal members can be guaranteed or insured for up to 90 percent of the unpaid principal and interest due.
In addition, the Act establishes the Indian Business Development Program which will stimulate and increase Indian entrepreneurship and employment by providing equity capital through non-reimbursable grants to Indians and Indian tribes to establish and expand profit marking Indian-owned economic enterprises benefiting Indian reservations and communities. The Act authorizes appropriations of up to $10 million for Indian Business Development grants for each of the next three years.
