[Congressional Record Volume 142, Number 88 (Friday, June 14, 1996)]
[Senate]
[Pages S6279-S6280]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      LAKOTA FUND GROUND BREAKING

  Mr. DASCHLE. Mr. President, I want to talk briefly about the tireless 
efforts being undertaken by a local nonprofit organization in South 
Dakota to improve the severe economic conditions on the Pine Ridge 
Indian Reservation.
  Over the years, numerous national press articles have documented the 
Pine Ridge Indian Reservation as one of the most impoverished areas in 
the country. The arid nature of the land lends little to farming and 
ranching. Banks, department stores, paved roads, and even safe drinking 
water are not to be taken for granted. Even amidst the stark majesty of 
its landscape, the vibrant tourism industry of western South Dakota 
remains a whisper of promise. Quite simply, on the Pine Ridge 
Reservation, the basic economic infrastructure that we all take for 
granted, struggles to exist.
  Ten years ago, a group of Pine Ridge residents, dedicated to 
improving their local economy, created a peer lending program called 
the Lakota Fund. After forming partnerships with private foundations 
and Federal agencies for seed money, this unique program began 
processing loans for economic enterprise on the reservation. It 
mandated enrollment in financial and business training courses and 
required groups of loan recipients to cosign for each others' loans. 
This unique lending approach, emphasizing trust over credit, created a 
strong sense of teamwork in the area that has enabled many budding 
entrepreneurs to realize their dreams.
  Before participating in the program, one young woman was unable to 
fulfill her dream of buying a house for her family. However, after 
successfully starting her own business and repaying her loan to the 
Lakota Fund, she was able to purchase a home, thanks to the 
establishment of a good credit record.

[[Page S6280]]

  There are many more individual success stories, but the true success 
of the Lakota Fund has transcended the accomplishments of any one 
individual. It has affected the entire community.
  Over the years, the Lakota Fund has loaned nearly $1 million to over 
250 small business men and women. Of these loans, less than 10 percent 
have failed.
  When the Lakota Fund began 10 years ago, the town of Kyle had only 
one grocery store and one convenience store. Today, with the Lakota 
Fund's help, Kyle is home to a cafe, two video rental stores, a flower 
shop, a tire repair shop, and a multitude of other businesses. These 
ongoing success stories are testament to the vision of the Lakota 
Fund's creators and staff. They knew that as each new business would 
bring new jobs, so would each new job sustain and improve the hope for 
financial independence.
  I have learned a great deal from the Lakota Fund's success. It has 
strengthened my belief that economies are built through partnerships. 
It has proven that Federal agencies such as the Economic Development 
Administration and the Small Business Administration can work together 
with community leaders to provide the financial support needed to make 
sound investments in local economies. And it has clearly demonstrated 
the important roles that exist for private foundations in supporting 
new business ventures.
  But most importantly, these efforts are shining examples that 
successful change can begin at the local level, that good things can be 
done when people work together, and that dreams can be reached where 
hope is allowed to grow.
  Mr. President, on June 20 of this year, the Lakota Fund will 
celebrate the ribbon cutting of their new foundation headquarters. This 
building, which was constructed through financial partnerships with the 
Economic Development Administration, Norwest Bank, and other notable 
private organizations, will house the offices of the Lakota Fund and 
will provide retail space for existing clients as well as training 
facilities for new loan applicants.
  This day will also celebrate the opening of the Tribal Business 
Information Center, a joint Small Business Administration venture that 
will work with the Lakota Fund to assist in the further development of 
the local economy.
  I would like to recognize the efforts of the Lakota Fund's staff for 
the hard work and commitment that was necessary to see these two 
projects through to fruition. In particular, I would like to personally 
honor the hard work and dedication of Elsie Meeks. As the former 
executive director of the Lakota Fund, Elsie has long been an 
impassioned voice for economic development in the Pine Ridge community. 
Her foresight and determination have made the Lakota Fund a national 
example of how trust among people can affect positive economic change.
  Still, I would be remiss if I did not emphasize that much more work 
needs to be done. The success of the Lakota Fund and the creation of 
the Tribal Business Information Center are but two small steps on a 
much longer journey to sustained economic growth on the Pine Ridge 
Reservation.
  Under the local guidance of organizations such as the Lakota Fund, I 
am confident we can continue to maximize our resources and forge 
stronger relationships between the public and private sector. And, with 
responsible leadership in Congress, we can reward the priorities of 
economic growth by emphasizing Federal programs that promote 
partnership and local control.

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