Economic Development: Federal Assistance Programs for American	 
Indians and Alaska Natives (21-DEC-01, GAO-02-193).		 
								 
Despite the recent success of casino gaming and other business	 
ventures undertaken by some Native Americans and Alaska Natives, 
unemployment and poverty remain widespread in these communities. 
Many federal programs are available to help Native Americans with
economic development, and some tribes are using these programs.  
Although agencies reported that their programs helped to create  
and retain jobs, little is known about the effectiveness of these
programs. The preparation of performance plans and reports, the  
designation of agency points of contact, and the establishment of
a single office to coordinate federal programs relating to Indian
economic development could improve Native Americans' access to	 
federal programs and provide federal decisionmakers with valuable
performance information.					 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-02-193 					        
    ACCNO:   A02605						        
  TITLE:     Economic Development: Federal Assistance Programs for    
American Indians and Alaska Natives				 
     DATE:   12/21/2001 
  SUBJECT:   Native American businesses 			 
	     Disadvantaged persons				 
	     Economic development				 
	     Regional development programs			 
	     Native Americans					 
	     Community development programs			 
	     BIA Indian Loans/Economic Development		 
	     Program						 
								 
	     HUD Indian Community Development Block		 
	     Grant Program					 
								 
	     Lakota Fund					 
	     SBA First American Printing and Direct		 
	     Mail Program					 
								 
	     USDA Empowerment Zones Program			 
	     USDA National Forest/Dependent Rural		 
	     Communities Program				 
								 
	     BIA Tribal Self-Governance Program 		 
	     GSA Catalog of Federal Domestic			 
	     Assistance 					 
								 
	     2000 Decennial Census				 

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GAO-02-193
     
What GAO Found

What GAO Found

About 100 federal programs are available to potentially assist Indians with
economic development activities, including 16 programs that require
applicants or beneficiaries to be Indians. In general, these programs
provide grants, loans, loan guarantees, or technical assistance to support
activities that include economic development planning, capacity- building,
and financing for business enterprises. Over half of these programs were
reported as used during 1997, 1998, or 1999 by at least 1 tribal entity, and
20 programs were used by 15 or more tribal entities, which include tribal
governments and other tribal organizations. The remaining programs may not
have been reported used for a variety of reasons, such as programs being
geared toward individual users, rather than tribal entities, and tribal
entities not yet reporting the information.

The agencies that operate the majority of the programs that GAO identified
generally report that their programs have assisted economic development in
various ways, such as creating and retaining jobs; however, little is known
about assistance as it relates to Indians. The recent requirement that a
single office be established to coordinate federal programs relating to
Indian economic development has the potential to improve Indians? access to
federal programs and to provide federal decisionmakers with performance
information that is more directly related to Indians.

The agencies that operate the majority of these programs reviewed the report
and generally agreed with its findings.

These pictures show a variety of Indian economic development activities,
such as grain production, hunting and fishing, casino gaming, forestry, and
houseboat rentals.

Report to Congressional Requesters

United States General Accounting Office

GAO

December 2001 ECONOMIC DEVELOPMENT

Federal Assistance Programs for American Indians and Alaska Natives

GAO- 02- 193

Why GAO Did This Study

In view of the high poverty and unemployment rates experienced by American
Indians and Alaska Natives (Indians), the Omnibus Indian Advancement Act
required GAO to study federal programs that tribes and tribal members can
use for economic development activities. GAO sought to identify relevant
federal economic development programs and the extent of their use as well as
summarize agencies? assessments of the effectiveness of their programs.

December 2001 ECONOMIC DEVELOPMENT Federal Assistance Programs for American
Indians and Alaska Natives

This is a test for developing highlights for a GAO report. The full report,
including GAO's objectives, scope, methodology, and analysis is available at
www. gao. gov/ cgi- bin/ getrpt? GAO- 02- 193. For additional information
about the report, contact Thomas J. McCool (202- 512- 8678). To provide
comments on this test highlights, contact Keith Fultz (202- 512- 3200) or e-
mail HighlightsTest@ gao. gov.

Highlights of GAO- 02- 193, a report to the Senate Committee on Indian
Affairs, House Committee on Resources, Senator Thomas A. Daschle, and
Congressman John R. Thune. United States General Accounting Office

G A O Accountability Integrity Reliability

Highlights

Page i GAO- 02- 193 Indian Economic Development Letter 1

Background 2 About 100 Federal Programs Are Available to Tribes and Tribal

Members for Economic Development 5 Tribal Entities? Use of Programs Has
Varied 7 Although Agencies Reported Progress in General, Recent

Initiatives Might Help Efforts to Assist Indians 10 External Studies
Indicated That Economic Development Efforts

Depend on Many Factors 15 Conclusions 16 Agency Comments 16

Appendix I Scope and Methodology 18

Appendix II Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities 21

Tables

Table 1: Number of Federal Programs, by Agency, That Can Be Used to Fund
Economic Development Activities of Tribes and Tribal Members 6 Table 2: The
Economic Development Programs Most Frequently

Reported as Used by Tribal Entities, 1997 through 1999 8 Table 3: Federal
Programs That Are Available Only to Indians 21 Table 4: Federal Programs
That Are Available to Indians and

Others 23 Contents

Page ii GAO- 02- 193 Indian Economic Development Abbreviations

BIA Bureau of Indian Affairs CFDA Catalog of Federal Domestic Assistance

DOC Department of Commerce DOI Department of the Interior EDA Economic
Development Administration HHS Department of Health and Human Services HUD
Department of Housing and Urban Development SBA Small Business
Administration USDA U. S. Department of Agriculture

Page 1 GAO- 02- 193 Indian Economic Development

December 21, 2001 The Honorable Daniel K. Inouye Chairman The Honorable Ben
Nighthorse Campbell Vice Chairman Committee on Indian Affairs United States
Senate

The Honorable James V. Hansen Chairman The Honorable Nick J. Rahall II
Ranking Minority Member Committee on Resources House of Representatives

The Honorable Thomas A. Daschle United States Senate

The Honorable John R. Thune House of Representatives

Despite the relatively recent success of casino gaming and other business
ventures for some Native American and Alaska Native communities, economic
distress is common among Indians, 1 as shown by the continuing widespread
unemployment and poverty in these communities. The differing needs of
Indians are reflected in the diversity of their tribes, which vary in
history, geography, population, natural resources, accessibility, and
numerous other aspects.

This report responds to section 421 of the Omnibus Indian Advancement Act, 2
which requires us to study federal programs designed to assist Indians with
economic development activities. As agreed with your staffs, this report (1)
identifies federal programs that are available to assist tribes and tribal
members with economic development, job creation, entrepreneurship, and
business development; (2) provides information on

1 In this report, the term ?Indian? refers to Native American and Alaska
Native communities and their members. 2 Pub. L. No. 106- 568 (2000).

United States General Accounting Office Washington, DC 20548

Page 2 GAO- 02- 193 Indian Economic Development

the extent that these programs are used; and (3) summarizes agencies?
assessments of the effectiveness of their programs. In conducting our work,
we reviewed external studies that described factors other than program
effectiveness that are essential to improving Indian economies.
Consequently, we also provide a summary of those studies.

To address these objectives, we used the Catalog of Federal Domestic
Assistance (CFDA) to identify federal programs that Indians could use for
economic development activities. 3 We also analyzed information from the
Federal Audit Clearinghouse?s single audit database, 4 which contains audit
report information from nonfederal governments and nonprofit organizations
that receive federal funds, including tribal governments and organizations.
In addition, we reviewed agencies? plans and reports that were prepared in
accordance with the Government Performance and Results Act of 1993 to obtain
information on their programs? effectiveness. We also met with tribal
officials, Indian organizations, and federal program officials to discuss
economic development activities.

We conducted our review from April through November 2001 in accordance with
generally accepted government auditing standards. Appendix I contains a
detailed description of our scope and methodology.

According to the 2000 Census, American Indians and Alaska Natives number
about 2.5 million nationwide. An estimated 40 percent of Indians live on
reservations; the other 60 percent live either close to the reservations or
farther away. Tribes- sometimes referred to as nations, bands, pueblos,
communities, rancherias, or villages- are various sizes. Their populations,
also known as the number of enrolled members of a tribe, vary from less than
25 to more than 100,000 members per tribe. As of

3 CFDA is a governmentwide compendium of federal programs and activities
that is coordinated by the Office of Management and Budget and compiled by
the General Services Administration.

4 The Federal Audit Clearinghouse, within the Bureau of the Census, operates
this database on behalf of the Office of Management and Budget to
disseminate information to the public, among other things. The single audit
database contains information from audit reports filed by states, local
governments, and nonprofit organizations that expend $300,000 or more in
federal awards for every fiscal year they meet the dollar threshold.
Approximately 32, 000 entities submitted reports for calendar year 1998.
Background

Page 3 GAO- 02- 193 Indian Economic Development

May 2001, there were 561 5 federally recognized Indian tribes, including
over 200 Alaska Native villages and about 300 reservations in at least 30
states.

Tribes represent different histories, ethnicities, cultures, and languages,
and tribal land holdings vary dramatically in size and in their
accessibility, geography, and natural resources. In addition, tribes face
some of the nation?s highest poverty and unemployment rates. According to
the Department of the Interior?s (DOI) Bureau of Indian Affairs (BIA), among
Indians living on or near reservations in 1999, the unemployment rate
averaged 43 percent, and, among the employed, the poverty rate averaged 33
percent. 6 The situation is much worse on some reservations. For example,
the Pine Ridge reservation located in South Dakota has an 85- percent
unemployment rate and a 63- percent poverty rate. The National Congress of
American Indians reports that, even with the introduction of casino gaming,
which is offered by more than 190 tribes, the vast majority of tribes are
mired in severe economic depression. 7

Tribes are unique in that they are sovereign governments. The U. S.
government has recognized the sovereign status of tribes since the formation
of the United States. The U. S. Constitution, treaties, and other federal
government actions have established tribal sovereignty. Tribes generally
cannot be taxed by states, are not subject to federal income tax, and have
governmental immunity. The federal government has various financial
obligations to tribes on the basis of treaties and overall trust
responsibility. The federal government holds title to tribal lands that are
in a trust status to ensure that the lands cannot be taken away and remain
subject to the authority of the tribal governments.

During the past 30 years, tribes have begun asserting their self- governance
and self- determination. To help them manage tribal business, tribes have
formed organizations that may include tribal governments or subsidiaries

5 This number includes three tribes that were notified of the reaffirmation
of their federal recognition on December 29, 2000, but the current Assistant
Secretary for Indian Affairs is reconsidering this reaffirmation.

6 For 1999, the Bureau of Labor Statistics reported that the national
average annual unemployment rate was 4.2 percent, and the Bureau of the
Census estimated that 10 percent of the people aged 18 to 64 years were
below the poverty level.

7 An Introduction to Indian Nations in the United States, National Congress
of American Indians, (not dated).

Page 4 GAO- 02- 193 Indian Economic Development

of tribal governments, such as schools, housing, or health corporations. In
addition, tribes may form a consortium through which they combine their
funding to provide services to their members. Finally, Alaska Natives are
members of village corporations and regional corporations that have been
established under the Alaska Native Claims Settlement Act of 1971.

As we have previously reported, many agencies offer a variety of programs
that can be used to assist communities with economic development activities.
8 These programs generally provide assistance in the form of grants, loans,
loan guarantees, or direct payments to applicants such as state, local, and
tribal governments; private organizations; and individuals. Financial and
nonfinancial information on these programs is made publicly available
through CFDA- a governmentwide compendium of federal programs and activities
that is coordinated by the Office of Management and Budget and compiled by
the General Services Administration. The 2001 CFDA contains 1,458 assistance
programs administered by 63 federal agencies. By federal law, 9 states,
local governments, and nonprofit organizations that annually expend $300,000
or more in federal awards are required to have audits conducted in
accordance with the Office of Management and Budget?s Circular A- 133,

Audits of States, Local Governments, and Non- Profit Organizations

(June 24, 1997). The circular further requires that the results of these
audits be submitted to the Federal Audit Clearinghouse, which is responsible
for maintaining this information in the governmentwide single audit
database.

While the focus of this report is on programs identified in CFDA, the
federal government also provides regulatory advantages and tax incentives
that support economic development for tribes and tribal members. In the
past, regulatory advantages have included provisions that facilitate casino
gaming compacts between tribes and states, allow the designation of trust
lands, and specify that tribes can participate in programs such as federal
empowerment zones. Regulatory advantages have also provided priority for
federal funding and government contracting to disadvantaged businesses,
which may include Indian businesses. Tax incentives include accelerated
depreciation for businesses on tribal lands and employment tax credits to
businesses that employ tribal members.

8 See Economic Development: Multiple Federal Programs Fund Similar Economic
Development Activities (GAO/ RCED/ GGD- 00- 220, Sept. 29, 2000). 9 31 U. S.
C. Chapter 75.

Page 5 GAO- 02- 193 Indian Economic Development

In addition to federal support for economic development, Indians may receive
funds or services from state and local government programs, philanthropic
organizations, nonprofit organizations, and private sector businesses.

We identified 100 federal programs that were available to assist tribes or
tribal members with economic development activities 10 from 1997 through
1999, of which 98 remain available for use. 11 These programs are operated
by different agencies and are used for various activities. The programs also
vary significantly in how directly they provide assistance. For example,
some programs are targeted to Indian applicants or beneficiaries, such as
the Aid to Tribal Governments program. For several Department of Agriculture
(USDA) programs, a portion of the funding is earmarked for projects that
benefit Indians. Some programs- such as the Grants for Public Works and
Economic Development program- explicitly include Indians among the eligible
applicants and beneficiaries. Also, for programs such as the Small Business
Loans program, Indians may be eligible to use the program even though the
program does not specifically designate Indians as applicants. Finally, some
programs provide funds to applicants, such as states, that may subsequently
use the funds in a way that benefits Indians; for instance, the Community
Development Block Grants/ Entitlement Grants program is such a program.
Appendix II contains information on each program.

As shown in table 1, these programs are operated by 18 federal agencies,
most of which have more than 1 of these economic development programs. Over
two- thirds of the programs are operated by five agencies- USDA; the
Department of Commerce (DOC), which includes the Economic Development
Administration (EDA); the Small Business Administration (SBA); the
Department of Housing and Urban Development (HUD); and DOI, which includes
BIA.

10 We identified these programs primarily by using CFDA. We did not include
programs that can assist with economic development activities, but that were
not available to Indians. For example, two agencies operate programs that
provide economic development assistance that is limited to the U. S.
Territories of Guam, the Virgin Islands, American Samoa, the Northern
Mariana Islands; and the freely associated States of the Federated States of
Micronesia, the Republic of the Marshall Islands, and the Republic of Palau.

11 Two programs- Economic Development/ State and Local Economic Planning
(CFDA number 11. 305) and Tribal Self- Governance Grants (CFDA number 15.
023)- are no longer available for use, but are included in our analyses.
About 100 Federal

Programs Are Available to Tribes and Tribal Members for Economic Development

Page 6 GAO- 02- 193 Indian Economic Development

Table 1: Number of Federal Programs, by Agency, That Can Be Used to Fund
Economic Development Activities of Tribes and Tribal Members

Agency Number of programs that can

fund economic development

Department of Agriculture 18 Department of Commerce 18 Small Business
Administration 13 Department of Housing and Urban Development 11 Department
of the Interior 11 Department of Defense 7 Department of Transportation 5
Appalachian Regional Commission 3 Department of Health and Human Services 3
Department of Energy 2 General Services Administration 2 Denali Commission 1
Department of Education 1 Department of the Treasury 1 Environmental
Protection Agency 1 National Credit Union Administration 1 National
Foundation on the Arts and the Humanities 1 Overseas Private Investment
Corporation 1

Source: GAO?s analysis of CFDA program information.

In general, the economic development activities that these programs support
include economic development planning assistance; capacitybuilding
assistance, such as for establishing codes for operating businesses on
tribal lands; financing for business enterprises; and technical assistance
through a variety of means, such as project grants, block grants, loans,
loan guarantees, and technical assistance. In addition, the programs support
activities in areas such as agriculture, mining, forestry, fish and
wildlife, manufacturing, or general business. These programs vary in the
types of activities that they can fund, with some programs focusing
primarily on economic development activities and other programs including
economic development along with other types of activities. For example,
DOC?s Native American Program and BIA?s Indian Economic Development program
focus on economic and business development, while HUD?s Indian Community
Development Block Grant Program and the Department of Health and Human
Services? (HHS) Native American Programs address issues such as health,
housing, and social

Page 7 GAO- 02- 193 Indian Economic Development

services, along with economic development. The requirements of some programs
are designed to serve specific needs that differ on the basis of such
factors as geography, economic distress, industry type, and military
presence. For example, the Appalachian Regional Commission?s programs must
benefit a specific geographic region.

Some of the programs are targeted to Indians; others are available to a
wider range of applicants and beneficiaries or may include Indians who meet
the programs? eligibility restrictions, which can include geography,
economic distress, industry type, military presence, or minority status.
Specifically, 16 of the programs are targeted to Indians and can be used for
economic development assistance, including 11 DOI programs, such as the Aid
to Tribal Governments program, and the programs that support agriculture;
fish, wildlife, and parks; minerals and mining; and forestry on Indian
lands. Also included among the targeted programs are HUD?s Indian Community
Development Block Grant Program and HHS? Native American Programs.

Information from both the single audit database and our visits to specific
tribes indicates that the extent of use of the programs we identified has
varied among tribal entities and across programs. Tribal entities that are
included in the database consist of tribal governments and nonprofit
organizations, such as housing authorities and schools. 12 Of the 746 tribal
entities whose reports were included in the single audit database, 433
reported using at least 1 of the economic development programs during the 3-
year period of 1997 through 1999. Furthermore, 198 entities reported using 3
or more programs. Many of the entities that did not report using any of the
programs were entities that focus on areas other than economic development,
such as education, social services, and health care.

The extent of the use of the programs also varied across tribes. Fifty- four
of the 100 programs were reported as used once or more by at least 1 tribal
entity during 1997, 1998, or 1999. While the remaining programs were not
reported as used by tribal entities, they may have been used during
different years or by individuals and for- profit entities, neither of

12 Information from the database is presented by entity because we could not
always identify the tribal affiliation. Tribal Entities? Use of

Programs Has Varied

Page 8 GAO- 02- 193 Indian Economic Development

which is included in the database. 13 During this 3- year period, 20
programs were reported as used by 15 or more tribal entities, and 12 of
these programs are targeted to Indians. As shown in table 2, these 20
programs are funded through 5 federal agencies- HHS, HUD, DOI, DOC, and
USDA.

Table 2: The Economic Development Programs Most Frequently Reported as Used
by Tribal Entities, 1997 through 1999

Dollars in millions

Program name (CFDA number) Agency Number of tribal

entities that used the program Total amount a

Native American Programs b (93.612) HHS 256 $65 Indian Community Development
Block Grant Program b (14.862) HUD 181 128 Aid to Tribal Governments b
(15.020) DOI 122 52 Tribal Self- Governance b (15.022) DOI 77 419 Fish,
Wildlife, and Parks Programs on Indian Lands b (15.039) DOI 75 44 Forestry
on Indian Lands b (15.035) DOI 51 18 Agriculture on Indian Lands b (15.034)
DOI 46 9 Economic Development/ Support for Planning Organizations (11.302)
DOC 41 4 Community Development Block Grants/ Entitlement Grants (14. 218)
HUD 34 10 Indian Economic Development b (15.032) DOI 32 5 Tribal Self-
Governance Grants b (15.023) DOI 28 29 Grants for Public Works and Economic
Development (11.300) DOC 27 10 Irrigation Operations and Maintenance on
Indian Lands b (15.049) DOI 24 6 National Forest/ Dependent Rural
Communities (10.670) USDA 24 1 Minerals and Mining on Indian Lands b
(15.038) DOI 20 4 Indian Loans/ Economic Development b (15.124) DOI 19 28
Rural Business Enterprise Grants (10.769) USDA 19 3 Community Development
Block Grants/ Special Purpose Grants/ Technical Assistance Program (14.227)
HUD

16 8 Economic Adjustment Assistance (11.307) DOC 16 9 Economic Development/
State and Local Economic Development Planning (11.305) DOC 15 1

a These totals may double count expenditures that were reported by both a
recipient and a subrecipient. b These programs are targeted for use by
Indians.

Source: GAO?s analysis of the single audit database.

13 Other reasons that the programs may not have been reported are that some
programs are limited to a specific area or industry that covers a small
number of tribal entities, such as Appalachia or farming, respectively, and
some reports may not yet have been filed. Appendix I of this report provides
a more complete explanation of the limitations of the database.

Page 9 GAO- 02- 193 Indian Economic Development

These 20 programs generally provide assistance in the form of grants or
direct payments for specified uses. For example, eight of the DOI programs
provide direct payments for specific uses, such as supporting general tribal
government operations, protecting and restoring rangeland and forests,
conserving fish and wildlife resources, and operating irrigation projects.
HHS? program provides direct loans and project grants for implementing
social and economic development strategies that promote self- sufficiency.
Eleven programs provide block grants and project grants that can be used for
activities such as developing small and emerging businesses, constructing
public works facilities to support jobs, establishing strategies to reduce
unemployment and increase incomes, expanding economic opportunities, and
supporting tribal self- governance. Some of the programs provide other
support in addition to direct payments or grants. For example, BIA?s
Forestry on Indian Lands program provides advisory services and counseling,
in addition to direct payments, and USDA?s National Forest/ Dependent Rural
Communities program provides training and the use of property, facilities,
and equipment, in addition to project grants. Another program, BIA?s Indian
Loans/ Economic Development program provides guaranteed loans.

For the 3- year period that we reviewed, at least $196 million in grants was
reported for these programs, 14 more than half of which (65 percent) was
provided through HUD?s Indian Community Development Block Grant Program.
About $556 million was reported for direct payments, 15 the majority of
which (75 percent) was provided through BIA?s Tribal SelfGovernance program.
Because some of these programs can be used for a variety of activities, we
could not identify the portion of these funds that was used for economic
development activities.

During our visits to Indian reservations and villages, we obtained anecdotal
information about the use of federal programs for economic development
activities. Tribal officials cited numerous examples of using federal
funding for business enterprises, including the following examples of
current businesses:

14 This amount excludes $65 million from HHS? Native American Programs,
which could have been used for project grants or loans, and $8 million from
HUD?s Community Development Block Grants/ Special Purpose Grants/ Technical
Assistance Program, which could have been used for project grants or direct
payments.

15 This amount excludes $8 million from HUD?s Community Development Block
Grants/ Special Purpose Grants/ Technical Assistance Program, which could
have been used for project grants or direct payments.

Page 10 GAO- 02- 193 Indian Economic Development

 At the Pine Ridge reservation in South Dakota, members of the Oglala Sioux
tribe have formed a tribally chartered corporation, called the Lakota Fund.
This fund offers microenterprise loans to individuals, such as artisans, and
small business loans to business start- ups or existing businesses. Two
sources of federal funding used by the Lakota Fund include SBA?s
microlending program and USDA?s Empowerment Zones Program.  The Mississippi
Band of Choctaw Indians has used federal funding for a

number of business enterprises. For example, an SBA loan guarantee program
was used to help develop First American Printing and Direct Mail, which is a
commercial printing enterprise.  The Peoria Tribe of Indians of Oklahoma
used funding from HUD?s Indian

Community Development Block Grant Program for the construction of a golf
course, in addition to other federal funds that were used to develop the
course. The golf course is the tribe?s major ongoing economic development
project.

Tribal officials also described planned activities for which (1) they were
seeking federal funding, including an apparel factory, a wood veneer
manufacturing facility, industrial sites, and a motel and conference center
complex, and (2) funding had not yet been decided, including restaurants,
tourism facilities, and wind power generation.

We reviewed agencywide performance information from the five agencies with
the most programs that could provide economic development assistance to
tribes- USDA, DOC, HUD, DOI, and SBA. In addition, we reviewed performance
information related to HHS? Native American Programs. All of these agencies
had goals and objectives related to economic development and measures
related to job creation and retention 16 as well as other measures that
varied among the agencies. In general, the agencies reported that these
programs were successful; however, as might be expected, other than DOI, the
reports did not specifically focus on the impact and effectiveness of
federal assistance to tribes. Nonetheless, several initiatives are under way
that might improve future availability of information on the effectiveness
of these economic development programs.

16 Agencies used different methods to obtain job creation statistics, which
included dividing the designated funding by a ?cost per job? that had been
computed on the basis of its most recent estimate of cost per job created;
using the expected job information from approved loan applications; and
using grantee periodic self- reporting. Although Agencies

Reported Progress in General, Recent Initiatives Might Help Efforts to
Assist Indians

Page 11 GAO- 02- 193 Indian Economic Development

The information available from agencies? performance plans and reports
varied across the agencies, with BIA having the most information describing
impact on Indians. Specifically, the BIA portion of DOI?s 2002 performance
plan and 2000 performance report addresses economic development for tribal
entities in the following three areas of its plan:

 community development, which includes an overall goal of strengthening
tribal communities through the development of self- sustaining economies and
improved infrastructure and a more specific goal of reducing the
unemployment rate among Indians from 43 percent in 1999 to 38 percent by
2005;  resource management, which includes an overall goal of assisting
Indians

in protecting and preserving their natural resources and more specific goals
of reforestation of tribal lands so that forest owners can benefit from the
full productive capacity of their forests, restoration of trust lands for
agronomic uses, and management of fish and wildlife programs; and  tribal
government, which includes an overall goal of providing tribes with

the resources they need to foster strong and stable governments and exercise
their authority as sovereign nations and more specific goals of promoting
self- determination by conducting training and technical assistance sessions
and ensuring that tribal codes and court procedures are developed and
training sessions are held.

BIA included performance measures for community development that covered the
success rate of employment and training participants in reaching their
objectives, the number of businesses funded, and the number of jobs created
or sustained. BIA reported that it exceeded its fiscal year 2000 goal for
the first measure because tribes reported that 84 percent of the
participants were placed in jobs, self- employed, or completed planned
education or training objectives. In addition, BIA reported that, although
these achievements did not meet its fiscal year 2000 goals for those
measures, it provided funding for 41 businesses, created 409 jobs, and
sustained 434 jobs.

While the information on BIA?s performance did not include comparable
information for resource management and tribal government, it included
performance measures for the restoration of unproductive trust lands for
agronomic uses thus avoiding an economic loss of millions of dollars
annually to Indian people. In addition, the plan also included several
performance measures regarding fish and wildlife, including the number of
tribes assisted with establishing and maintaining treaty rights; the number
of intertribal comanagement programs receiving assistance; the number of
fishing access site maintenance projects funded; the number of fish
Performance Information

Related to Indians Varied Among Agencies

Page 12 GAO- 02- 193 Indian Economic Development

hatchery projects funded; and the number of tribes developing integrated
resource management plans.

For some of BIA?s programs, CFDA contained some information on progress in
these areas, as summarized below:

 The Forestry on Indian Lands program contributed to the reforestation of
about 14,000 acres in fiscal year 2000, and timber sales managed through the
program created about 9,000 person years of employment and revenues of
approximately $100 million.  The Agriculture on Indian Lands program
indicates that tribes and tribal

organizations received Noxious Weed Eradication awards that resulted in
treating approximately 80,000 acres of trust land.  The Minerals and Mining
on Indian Lands program facilitates over $200

million in annual income to tribes and allottees. The performance plans and
reports for HUD, USDA, SBA, and DOC contained goals and objectives related
to economic development. In addition, with the exception of SBA, these
agencies had measures related to job creation and retention. In general,
these agencies? measures did not focus on the impact and effectiveness of
assistance provided to tribes. For example, HUD provides job creation
results for the Community Development Block Grant program, but does not
provide information on tribes or tribal members assisted through the
program. USDA officials stated that, for some mission areas, Indians
represent a small number of clients, and that the agency does not assess the
impact of programs on them. According to the Native American Coordinator, in
the rural development mission area, USDA?s state offices prepare strategic
plans covering the delivery of assistance for each federally recognized
Indian tribe; however, these are handled at the state level and may not be
specifically mentioned in USDA?s performance plans and reports.

In some cases, these agencies measured the use of programs by tribal
entities in terms of the amount of assistance provided to tribal entities or
the number of tribal entities assisted. For example, SBA, under its goal of
helping small businesses succeed, states that it plans to increase the
number of clients that are provided access to business development
assistance to 1.4 million, including 5,000 through Tribal Business
Information Centers. 17 Similarly, DOC?s 2000 performance report states

17 Tribal Business Information Centers provide information and technology to
support small businesses.

Page 13 GAO- 02- 193 Indian Economic Development

that fiscal year 2000 initiatives for Native Americans led to an appreciable
increase over fiscal year 1999 in the number of Indian communities assisted.
DOC officials said that the Economic Development/ Support for Planning
Organizations program provides annual planning grants to 61 tribes. In
addition, although HHS has only three economic developmentrelated programs,
its Native American Programs, which provides a broad range of services, is
specifically addressed in HHS? performance plan under the strategic goal of
increasing the health and prosperity of communities and tribes. One of the
plan?s performance goals is to increase the provision of training and
technical assistance to tribes. This goal includes the use of contractors to
assist tribes and native communities in conceptualizing strategies for
social and economic development.

During our visits to reservations and discussions with tribal
representatives, we identified anecdotal information on tribes? experiences
in using federal economic development programs. Some of these experiences
resulted in currently operating business enterprises, such as the
microenterprise loan program, printing business, and golf course that we
described previously in this report. Tribal officials also described
experiences that involved the use of federal assistance and resulted in
businesses that had failed, such as a saddle- making shop, a wood treatment
facility, a meat- processing business, and an electronics manufacturing
business. The reasons given for business failures included the lack of
managerial expertise, the lack of capital, political interference, and
competition.

Tribes with whom we met shared a number of concerns related to receiving
federal assistance, as summarized below:

 Access to capital is difficult for tribes, sometimes because they have
insufficient collateral. Consequently, they have difficulty making funds
available to meet the matching fund requirements of many federal programs. 
Some tribes indicated that businesses need resources at times when the

federal funding is not available; thus it seems that the federal programs
are not flexible enough to meet time- critical business opportunities. 
Tribes do not have the people or expertise needed to handle the

administrative and paperwork requirements of federal programs. Consequently,
tribes may avoid using a program because the program?s requirements seem
onerous, or tribes may spend a large amount of the federal funds on those
requirements, leaving less for needy projects.  Tribes cannot rely on
federal funds to be available long enough to keep

projects running. More than one tribe mentioned that they were able to

Page 14 GAO- 02- 193 Indian Economic Development

obtain funds to initiate a project but were not able to obtain funds to
continue the project to a point where it would be self- sustaining.  Many
tribes said they had never been successful in obtaining funds from

specific agencies and thus were discouraged from trying in the future. The
federal government has made a number of efforts to encourage agencies to
coordinate their efforts to provide economic development assistance to
Indians. For example, the Native American Business Development, Trade
Promotion, and Tourism Act of 2000 requires DOC to establish an Office of
Native American Business Development. 18 This office is charged with
coordinating federal programs relating to Indian economic development,
including those programs of any federal agency charged with Indian economic
development responsibilities. DOC has placed the responsibility for the
office within EDA, but the office has not yet been established due to a lack
of funding. In addition, before this legislation, DOC prepared a draft plan
entitled Five- Year Strategic Plan to Promote and Support Economic Self-
Sufficiency for American Indians and Alaska Natives, FY 2001 - FY 2006,
which recognized the need to coordinate within DOC on providing assistance
to Indians. This plan included goals related to access to capital,
assistance with exporting, and technology infrastructure. According to DOC,
this plan has not yet been implemented or integrated into the agency?s
overall plan. DOC reported that it is working on plans to collaborate with
other federal agencies on ways to evaluate and measure crosscutting
activities related to improving economic development assistance for
distressed communities.

A 2000 Executive Order reiterates the goals of a previous executive
communication and requires agencies to establish regular and meaningful
consultation and collaboration with Indian tribal governments on federal
regulatory matters, unfunded mandates, and the availability of waivers. The
order requires federal agencies to designate a responsible agency official
to implement the order. Each of the agencies with the most economic
development programs available to Indians- USDA, DOC, HUD, SBA, and DOI-
have either designated a tribal consultation official or are in the process
of making such a designation.

Another initiative stems from a 1998 executive memorandum that directed DOI,
DOC, and SBA to develop a strategic plan for coordinating economic

18 Pub. L. No. 106- 464 (2000). Recent Federal Initiatives

Might Help Coordinate Efforts to Assist Indians

Page 15 GAO- 02- 193 Indian Economic Development

development initiatives for Native American and Alaska Native communities.
These agencies developed a plan to improve coordination among federal
agencies by (1) increasing access to federal economic development programs
and assistance, (2) increasing opportunities in tribal communities, and (3)
identifying and addressing gaps in the delivery of federal economic
development assistance. The ultimate goal of the plan was to increase the
effectiveness of, and access to, economic development programs among
Indians. Among the outcomes of the plan was establishing within HUD an
information referral service- called Native EDGe- to identify federal
economic development programs and initiatives that are available to Indians;
this service is available via a toll- free telephone number and the
Internet. The director of this program told us that, since the service began
in April 2000, the Internet site has been visited by over 36,000
individuals, resulting in the provision of ongoing assistance for
approximately 625 economic development projects. In addition, over 2,000
requests for information have been received through the toll- free number
and about 7,000 requests for publications have been received via the
Internet or by telephone.

During the last 10 years, studies have stated that multiple factors affect
the ability of Indians to support economic development. As noted in a 1992
study on Indian economic development, achieving sustained, selfdetermined
economic development among Indians requires tribes to build on their
sovereignty by creating institutions that can plan and develop economic
policies and projects that are appropriate for the culture and history of
the tribe. 19 A 1998 report cites similar factors that are important to
economic development among Alaska Natives. 20 Specifically, the report
emphasizes the importance of sovereignty, self- determination, and
developing institutions to support employment and business expansion as well
as sustained access to capital. Finally, a report from the Harvard Project
on American Indian Economic Development identified three keys to Indian
economic development: tribal sovereignty, which means that tribes make their
own decisions regarding approaches and resources; culture, which means that
tribal decisions are consistent with tribal

19 What Can Tribes Do? Strategies and Institutions in American Indian
Economic Development, Stephen Cornell and Joseph P. Kalt, American Indian
Studies Center, University of California, 1992.

20 Expanding Job Opportunities for Alaska Natives (Interim Report),
Institute of Social and Economic Research, University of Alaska Anchorage,
Nov. 1998. External Studies

Indicated That Economic Development Efforts Depend on Many Factors

Page 16 GAO- 02- 193 Indian Economic Development

culture; and institutions, which means that decisions regarding businesses
are separated from decisions regarding tribal governance. 21 The
implications of these studies are that the effectiveness of federal programs
is intricately linked with the ability of tribes to incorporate the programs
into their economic development plans.

Many federal programs are available to Indians to assist with economic
development activities, and some tribes are using these programs. Although
agencies generally reported that their programs have assisted economic
development in ways such as creating and retaining jobs, little information
is known about the effectiveness of these programs as they relate to
Indians. However, the continuation of and support for existing mechanisms-
such as preparing performance plans and reports, designating agency points
of contact, and establishing a single office to coordinate federal programs
relating to Indian economic development- has the potential to improve
Indians? access to federal programs and to provide federal decisionmakers
with performance information that is more directly related to Indians.

We provided copies of a draft of this report for review and comment to USDA,
DOC, DOI, HUD, and SBA. These agencies generally agreed with the information
in the draft report and provided technical clarifications, which we
incorporated where appropriate.

As part of its comments, USDA emphasized that historical grant cycles have
tended to perpetuate tribal dependency on federal programs rather than
promote self- sufficiency because they focus on discrete projects, and that
federal assistance programs could be better coordinated and amended to
encourage long- term planning. USDA added that the effectiveness of federal
programs could be improved through the funding and subsequent implementation
of the Office of Native American Business Development.

DOI offered several observations in its comments on the draft report. First,
DOI noted that BIA has taken steps to establish a partnership with some
tribes in order to develop a strategy to coordinate and integrate all

21 Patterns of Indian Enterprise Success: A Statistical Analysis of Tribal
and Individual Indian Enterprise Performance, The Harvard Project on
American Indian Economic Development, Miriam R. Jorgensen and Jonathan
Taylor, Feb. 2000. Conclusions

Agency Comments

Page 17 GAO- 02- 193 Indian Economic Development

available resources, including federal resources. DOI added that these
tribes have generally been supportive of and satisfied with BIA?s efforts.
Second, DOI noted that some initiatives have not succeeded due to lack of
funding, such as an initiative involving the coordination of economic
development activities that are managed by DOI, DOC, and SBA. Finally, DOI
provided information on its efforts to coordinate employment, training, and
related services among federal agencies, which DOI states placed over 15,000
Indians in jobs in fiscal year 2001. We did not include this effort in our
study because we did not include employment and training programs in our
review.

We are sending copies of this report to the Secretaries of Agriculture,
Interior, Commerce, and Housing and Urban Development; the Administrator of
SBA; and the appropriate congressional committees. We will also make copies
available to others on request.

If you have any questions about this report, please contact Nancy Simmons or
me at (202) 512- 8678. Key contributors to this assignment were Kathleen
Clarke, Jeff Malcolm, Dan Meyer, Andy Pauline, and Desiree Whipple.

Thomas J. McCool Managing Director, Financial Markets and

Community Investment

Appendix I: Scope and Methodology Page 18 GAO- 02- 193 Indian Economic
Development

In developing this report, we used various approaches to address federal
efforts to provide economic development among tribes and tribal members. The
major components of our approaches included identifying economic
development- related programs that are available to Indians; identifying
tribal entities and analyzing the single audit database to determine program
use; reviewing agencies? performance plans and reports, and visiting
reservations and villages and talking with tribal officials and officials
from other tribal organizations. The focus of our review was on federal
assistance; however, other sources also provide assistance to tribes,
including states and philanthropic organizations. Tribal revenues from
federal settlements over land and resource matters and other tribal
businesses, particularly casino gaming, have been cited by tribes as
significant resources for economic development funding for some tribes.

We identified economic development programs primarily by searching the

Catalog of Federal Domestic Assistance (CFDA) as well as using other
information. Key search terms that were used included variations of those in
the legislative mandate: economic development, job creation,
entrepreneurship, and business development. In addition to determining which
programs were related to economic development, we also identified whether
the programs were targeted to tribes; whether tribes were listed as an
eligible applicant; and, if not explicitly listed as eligible applicants,
whether tribes or tribal members could meet the eligibility criteria. We
generally did not include programs that mainly funded infrastructure, such
as roads and streets; programs that funded revolving loan funds; or programs
that responded to natural disasters. We also reviewed various federal and
Indian Web sites as well as agency documents that provided information on
available programs. We did not include programs that primarily provided
economic infrastructure, although such infrastructure may be necessary for
economic development.

To determine which programs the tribes used, we analyzed information from a
database that is operated by the Bureau of the Census? Federal Audit
Clearinghouse on behalf of the Office of Management and Budget. This
database contains audit information from reports that are submitted by any
state, local government, or nonprofit organization that expends $300,000 or
more in federal awards within a year. The information we used from the
database included the reporting entity?s name and employer identification
number, the CFDA number, the program name, and the amount expended. We
identified tribal entities by searching for key words in entity names, such
as tribe, band, and Indian; identifying entities that used programs that
were targeted to Indians; and matching employer Appendix I: Scope and
Methodology

Appendix I: Scope and Methodology Page 19 GAO- 02- 193 Indian Economic
Development

identification numbers obtained from an Internal Revenue Service listing of
tribal entities. Using this list of tribal entities, we determined which
programs were reported as used during 1997 through 1999. We report
information by tribal entities because tribes may file reports for multiple
entities, such as for a housing authority, school board, health
organizations, and others. Entities may also represent multiple tribes
through consortiums that provide services to multiple tribes. Consequently,
information may have been counted more than once if both a consortium
(initial recipient) and another tribal entity (subrecipient) reported the
same expenditure.

We did not independently assess the reliability of the single audit
database. However, the Department of Commerce?s Office of Inspector General
performed a review of the database to assist other users in assessing the
accuracy of the fiscal year 1998 audit report information in the database. 1
Their review included comparing the information in the database with
information provided on the original data collection forms. The Office of
Inspector General reported that they tested 22,563 data elements and found
370 errors. The majority of those errors were attributed to incorrect or
incomplete information on the original forms.

For the 3 years of report information that we used from the Indian entities,
we found that we could not use about 10 percent of the CFDA numbers because
they were not reported in the standard CFDA numbering format. Consequently,
the information we report may undercount the use of the 100 programs as well
as the amount of funds expended. We believe this undercounting is low
because (1) in many cases where this occurred, the entity reported other
programs using the standard CFDA numbering format, so that we were able to
include other information for that entity and (2) we discussed information
from the database with the relevant Indian tribes as part of our visits, and
the tribal officials did not identify any errors in these data.

To determine agencies? assessments of the effectiveness of their economic
development programs, we reviewed the most recent annual performance plans
and performance reports, which are prepared in compliance with the
Government Performance and Results Act of 1993, for the five agencies

1 Bureau of the Census: Agreed- Upon Procedures and Results Assessment of
Federal Audit Clearinghouse Database Fiscal Year 1998 Audit Reports (Final
Audit Report No. ATL12556- 0- 0001/ July 2000).

Appendix I: Scope and Methodology Page 20 GAO- 02- 193 Indian Economic
Development

that had the greatest number of programs available to tribes for economic
development. These agencies were the Departments of Agriculture, Commerce,
Interior, and Housing and Urban Development and the Small Business
Administration. We also reviewed other information, such as the CFDA
information on program accomplishments, as well as information available on
agencies? Web sites and information provided to us by the agencies.

To better understand the economic situation among tribes and their
experiences with federal programs, we also visited reservations and spoke
with tribal representatives and officials of tribal organizations and
associations. In addition, we attended Indian business conferences. We
selected tribes to visit on the basis of factors such as land size,
population, degree of economic distress, proximity to urban and rural areas,
and proximity to other tribes. We also included tribes that were recommended
to us by agency and congressional staffs. We spoke with representatives from
the following tribes:

 Colville Confederated Tribes  Kalispel Tribe of Indians  Lower Brule
Sioux Tribe  Menominee Indian Tribe of Wisconsin  Miami Tribe of Oklahoma
 Mississippi Band of Choctaw Indians  Native Village of Minto  Native
Village of Tyonek  Nenana Native Association  Oglala Sioux Tribe  Oneida
Nation of Wisconsin  Peoria Tribe of Indians of Oklahoma  Pueblo of Zuni 
Ramah Navajo Chapter  Stockbridge- Munsee Band of Mohican Indians

In conjunction with our tribal visits, we contacted other tribal
organizations, associations, and entities that were involved in economic
development activities. These included Alaska Village Initiatives; Doyon
Limited, Inc.; National Indian Business Association; Nenana Village
Corporation; Tanana Chiefs Conference, Inc.; Tyonek Village Corporation; and
United Sioux Tribes of South Dakota Development Corporation.

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Page 21 GAO- 02- 193 Indian Economic Development

The programs that we have identified may be targeted so that they are
available only to tribes and tribal members or may be available to tribes
and tribal members on the basis of other program eligibility criteria. Table
3 shows the programs that are targeted to tribes and tribal members, and
table 4 shows programs that are available to Indians as well as others. For
some of the programs in table 4, a portion of the program is targeted to
Indians.

In each table, the programs are listed by federal department or agency.
These programs offer various types of assistance and have different
objectives. The economic development objectives are those that relate to job
creation, entrepreneurship, and business development. For a more
comprehensive listing of information on each program, see CFDA or search the
on- line CFDA at www. cfda. gov.

Table 3: Federal Programs That Are Available Only to Indians Program name
CFDA

number Type of assistance Economic development objectives Department of
Agriculture

Indian Tribes and Tribal Corporation Loans 10.421 Direct loans To enable
federally recognized Indian tribes and tribal

corporations to acquire land within tribal reservations and Alaskan
communities

Department of Commerce

Native American Program 11.801 Project grants To provide electronic and one-
on- one business development service to Native Americans interested in
entering, expanding, or improving their efforts in the marketplace

Department of Health and Human Services

Native American Programs 93.612 Project grants; direct loans To provide
assistance for the implementation of social

and economic development strategies that promote selfsufficiency as well as
projects that are expected to result in improved social and economic
conditions

Department of Housing and Urban Development

Indian Community Development Block Grant Program

14.862 Project grants To provide assistance to Indian tribes and Alaska
Native villages in the development of viable Indian communities (including
economic development projects)

Department of the Interior

Aid to Tribal Governments 15.020 Direct payments for specified use To
provide funds to Indian tribal governments to support

general tribal government operations and to develop appropriate tribal
policies, legislation, and regulations Tribal Self- Governance 15.022 Direct
payments for

specified use To further the goals of Indian self- determination by
providing funds to Indian tribes to administer a wide range of programs with
maximum administrative and programmatic flexibility Tribal Self- Governance
Grants a 15.023 Project grants To support tribal self- governance planning,
negotiation,

and related activities

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Page 22 GAO- 02- 193 Indian Economic Development

Program name CFDA number Type of assistance Economic development objectives

Indian Economic Development 15.032 Direct payments for specified use To
assist federally recognized Indian tribal governments

to develop resources to improve their economies through administration of
credit programs and other economic development assistance activities
Agriculture on Indian Lands 15.034 Direct payments for

specified use; provision of specialized services; advisory services and
counseling

To protect and restore the agronomic and rangeland resources on trust lands
and facilitate the development of renewable agricultural resources

Forestry on Indian Lands 15.035 Direct payments for specified use; provision
of specialized services; advisory services and counseling

To maintain, protect, enhance, and develop Indian forest resources through
the execution of forest management activities

Minerals and Mining on Indian Lands 15.038 Direct payments for

specified use; provision of specialized services; dissemination of technical
information

To assist and support the inventory and prudent development of energy and
mineral resources on Indian lands

Fish, Wildlife, and Parks Programs on Indian Lands 15.039 Direct payments
for

specified use To promote the conservation, development, and use of fish,
wildlife, and recreational resources for sustenance, cultural enrichment,
economic support, and maximum benefit of Indians Irrigation Operations and
Maintenance on Indian Lands 15.049 Direct payments for

specified use; use of property, facilities, and equipment; provision of
specialized services

To operate and maintain the irrigation water delivery systems on Indian
irrigation projects

Indian Loans/ Economic Development 15.124 Guaranteed or insured

loans To assist Indians in obtaining financing from private sources to
promote business development initiatives on or near federally recognized
Indian reservations Indian Arts and Crafts Development 15.850 Use of
property, facilities,

and equipment; advisory services and counseling

To encourage and promote the development of American Indian and Alaska
Native arts and crafts

Department of Transportation

Tribal Colleges Entrepreneurial Training and Technical Assistance

20.908 Project grants To support tribal colleges and universities to
encourage, promote, and assist minority entrepreneurs through projects that
provide training on how to compete for projects funded through the
Department of Transportation a Budget authority for this program expired in
2000.

Source: CFDA.

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Page 23 GAO- 02- 193 Indian Economic Development

Table 4: Federal Programs That Are Available to Indians and Others Program
name CFDA

number Type of assistance Economic development objectives Department of
Agriculture

Farm Storage Facility Loans 10.056 Direct loans To encourage the
construction of farm storage capacity Forestry Incentives Program 10.064
Direct payments To provide cost sharing for tree planting, timber stand

improvement, and site preparation for natural regeneration Farm Operating
Loans 10.406 Direct loans; guaranteed

and insured loans To enable operators of family farms to operate efficiently
and maintain financially viable farming and ranching operations Farm
Ownership Loans 10.407 Direct loans; guaranteed

and insured loans To assist in becoming owner- operators of farms; make
efficient use of land, labor, and other resources; and carry on successful
farming operations Small Farmer Outreach Training and Technical Assistance
Program

10.443 Project grants To encourage and assist socially disadvantaged farmers
and ranchers to own and operate farms

National Forest/ Dependent Rural Communities 10.670 Project grants; use of

property, facilities, and equipment; training

To assist rural communities that are in or near national forests and
dependent on forest resources in developing strategic action plans to
diversify and improve their economic base Rural Development, Forestry, and
Communities 10.672 Project grants To help rural areas analyze and assess
forest resource

opportunities and maximize economic potential through market development and
expansion, and diversify communities? economic base Community Facilities
Loans and Grants 10.766 Project grants; direct

loans To construct, enlarge, extend, or otherwise improve community
facilities- for example, industrial park sites Intermediary Relending
Program 10.767 Direct loans To finance business facilities and community

development Business and Industry Loans 10.768 Direct loans; guaranteed

and insured loans To obtain quality loans for improving, developing, or
financing business and industry Rural Business Enterprise Grants 10.769
Project grants To facilitate the development of small and emerging

private business, industry, and related employment Rural Cooperative
Development Grants 10.771 Project grants To establish and operate centers
for rural cooperative

development to improve economic conditions in rural areas by promoting the
development of new cooperatives and/ or improvement of existing cooperatives
Empowerment Zones Program 10.772 Project grants To stimulate the creation of
new jobs and to promote

revitalization of economically distressed areas Rural Business Opportunity
Grants 10.773 Project grants To promote sustainable economic development in
rural

communities with exceptional needs National Sheep Industry Improvement
Center 10.774 Project grants; direct

payments for specified use; direct loans; guaranteed and insured loans

To assist the U. S. sheep and goat industries by strengthening and enhancing
the production and marketing of sheep and goats and their products in the
United States

Rural Economic Development Loans and Grants 10.854 Project grants; direct

loans To promote rural economic development and job creation projects,
including funding for project feasibility studies, start- up costs, and
incubator projects Resource Conservation and 10.901 Advisory services and To
encourage and improve the capability of entities in

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Page 24 GAO- 02- 193 Indian Economic Development

Program name CFDA number Type of assistance Economic development objectives

Development counseling rural areas to plan, develop, and carry out programs
for resource conservation and development

Department of Commerce

Commercial Service 11.108 Advisory services and counseling To assist and
encourage firms to export or expand their

export marketing efforts Foreign Trade Zones in the United States 11.111
Provision of specialized

services To help firms reduce customs costs and help improve a domestic
operation?s international competitiveness International Trade Administration
Special Projects 11.113 Project grants To promote job creation through
projects designed to

provide small to medium- sized businesses with export assistance to
specified overseas markets Grants for Public Works and Economic Development
11.300 Project grants To assist in the construction of public works and

development facilities needed to initiate and support the creation or
retention of permanent jobs in the private sector in areas experiencing
substantial economic distress Economic Development/ Support for Planning
Organizations

11.302 Project grants To help strengthen economic development planning
capability and formulate and establish comprehensive economic development,
process, and strategies designed to reduce unemployment and increase incomes
Economic Development/ Technical Assistance

11.303 Project grants To promote economic development in distressed areas by
supporting innovative economic development projects and financing
feasibility studies and other projects leading to local economic development
Economic Development/ State and Local Economic Development Planning a

11.305 Project grants To help governments strengthen economic development
planning to reduce unemployment and increase incomes Economic Adjustment
Assistance 11.307 Project grants To assist state and local interests to
design and

implement strategies to adjust or bring about change to an economy, focusing
on areas that have experienced or are under threat of serious structural
damage to the underlying economic base Research and Evaluation Program
11.312 Project grants To assist in the formulation and implementation of

national, state, and local programs that will raise income levels and
otherwise produce solutions to excessive unemployment and underemployment
Trade Adjustment Assistance 11.313 Project grants To provide trade
adjustment assistance to firms and

industries adversely affected by increased imports Fisheries Development and
Utilization Research and Development Grants and Cooperative Agreements
Program

11.427 Project grants To increase greatly the nation?s wealth and quality of
life through sustainable fisheries that support fishing industry jobs, safe
and wholesome seafood, and recreational opportunities

Technology Opportunities 11.552 Project grants To promote the widespread use
and availability of advanced telecommunications and information technologies
in the public and nonprofit sectors to foster economic development
Manufacturing Extension Partnership 11.611 Dissemination of

technical information To establish, maintain, and support manufacturing
extension centers and services to improve the competitiveness of firms
accelerating the use of appropriate manufacturing technology

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Page 25 GAO- 02- 193 Indian Economic Development

Program name CFDA number Type of assistance Economic development objectives

Experimental Program to Stimulate Competitive Technology

11.614 Project grants To support technology- based economic growth in
eligible jurisdictions by promoting partnerships between governments,
universities, community colleges, nonprofit organizations, and the private
sector Minority Business Development Centers 11.800 Project grants To
provide electronic and one- on- one business

development services to minority firms and individuals interested in
entering, expanding, or improving their efforts in the marketplace Minority
Business Development 11.802 Project grants To provide for indirect business
assistance for programs

that encourage minority business development Minority Business Opportunity
Committee Development 11.806 Project grants To provide minority business
owners with enhanced

access to the marketplace by identifying marketing and sales opportunities,
financing resources, potential joint venture partners, timely market leads,
and other current business information

Department of Defense

Procurement Technical Assistance for Business Firms 12.002 Project grants To
provide marketing and technical assistance to (1)

business firms in selling their goods and services to federal agencies and
(2) state and local governments to generate employment and to improve the
general economy of a locality Planning Assistance to States 12.110 Provision
of specialized

services To cooperate with any state in the preparation of comprehensive
plans for the development, use, and conservation of water and related land
resources of drainage basins located within the boundaries of such state
Community Economic Adjustment 12.600 Provision of specialized

services; advisory services and counseling

To help communities, regions, and states alleviate serious economic impacts
that result from defense program changes- for example, base openings,
expansions and closings, contract changes, and personnel reductions and
increases Community Economic Adjustment Planning Assistance

12.607 Project grants To assist local governments or states, on behalf of
local governments, to undertake community economic adjustment planning
activities to respond to military base closures and realignments Community
Economic Adjustment Planning Assistance for Reductions in Defense Industry
Employment

12.611 Project grants To assist local governments to undertake economic
adjustment planning activities to respond to major reductions in defense
industry employment resulting from the cancellation, termination, or failure
to proceed with a major Department of Defense acquisition Community Base
Reuse Plans 12.612 Project grants To assist local governments to conduct
community base

reuse plans at closing or realigning military installations Growth
Management Planning Assistance 12.613 Project grants To assist local
governments to undertake community

economic adjustment planning activities to respond to military base openings
or expansions

Department of Education

Projects with Industry 84.234 Project grants To create and expand job and
career opportunities for individuals with disabilities in the competitive
labor market by partnering with private industry to provide job training and
placement

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Page 26 GAO- 02- 193 Indian Economic Development

Program name CFDA number Type of assistance Economic development objectives
Department of Energy

Management and Technical Assistance for Minority Business Enterprises

81.082 Advisory services and counseling To support increased participation
of minority- and

women- owned small businesses and operated business enterprises and to
transfer applicable technology from national federal laboratories to
minority business enterprises National Industrial Competitiveness Through
Energy, Environment, and Economics

81.105 Project grants To generate new processes and/ or equipment that can
significantly reduce the use of energy and energy intensive feedstocks and
reduce the generation of wastes in industry

Department of Health and Human Services

Community Services Block Grant/ Discretionary Awards 93.570 Project grants
To support program activities to alleviate causes of

poverty in distressed communities by promoting full- time permanent jobs for
poverty- level project area residents as well as other activities Job
Opportunities for Low Income Individuals 93.593 Project grants To create new
employment and business opportunities

through self- employment, microenterprise, new business ventures, and
expansion of existing businesses for welfare recipients and other low-
income individuals

Department of Housing and Urban Development

Community Development Block Grants/ Entitlement Grants 14.218 Formula grants
To develop viable urban communities by (1) providing

decent housing and a suitable living environment and (2) expanding economic
opportunities, principally for persons of low and moderate income Community
Development Block Grants/ Small Cities Program 14.219 Project grants To
develop viable urban communities by (1) providing

decent housing and a suitable living environment and (2) expanding economic
opportunities, principally for persons of low and moderate income Community
Development Block Grants/ Special Purpose Grants/ Technical Assistance
Program

14.227 Project grants; direct payments for specified use

To help plan, develop, and administer local Community Development Block
Grant programs

Community Development Block Grants/ State?s Program 14.228 Formula grants To
develop viable urban communities by (1) providing

decent housing and a suitable living environment and (2) expanding economic
opportunities, principally for persons of low and moderate income
Empowerment Zones Program 14.244 Project grants To stimulate the creation of
new jobs and to promote

revitalization of economically distressed areas Community Development Block
Grants/ Economic Development Initiative

14.246 Project grants To help public entities that are eligible under the
Section 108 Loan Guarantee Program carry out economic development projects
Community Development Block Grants/ Section 108 Loan Guarantee Program

14.248 Guaranteed and insured loans To provide communities with a source of
financing for

economic development, housing rehabilitation, public facilities, and large-
scale physical development projects Rural Housing and Economic Development
14.250 Project grants To expand the supply of affordable housing and access

to economic opportunities in rural areas Community Outreach Partnership
Center Program 14.511 Project grants To fund partnerships between
institutions of higher

education and communities to solve urban problems

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Page 27 GAO- 02- 193 Indian Economic Development

Program name CFDA number Type of assistance Economic development objectives

through research, outreach, and exchange of information Alaska Native/
Native Hawaiian Institutions Assisting Communities

14.515 Project grants To help Alaska Native and Native Hawaiian institutions
of higher education address community development needs in their localities,
including neighborhood revitalization, housing, and economic development

Department of Transportation

Development and Promotion of Ports and Intermodal Transportation

20.801 Advisory services and counseling; dissemination of technical
information

To promote and plan for the development and use of domestic waterways,
ports, and port facilities

Bonding Assistance Program 20.904 Insurance To enhance and further the
opportunity for Small and Disadvantaged Business Enterprises to obtain bid,
performance, and payment bonds for transportationrelated contracts
Disadvantaged Business Enterprises Short Term Lending Program

20.905 Direct loans To enhance and further the opportunity of Disadvantaged
Business Enterprises to obtain accounts receivable financing for the
performance of transportation- related contracts Hispanic Serving
Institutions Entrepreneurial Training and Technical Assistance

20.906 Project grants To enhance Disadvantaged Business Enterprises and
small business opportunity to successfully compete on Department of
Transportation contracts and funded projects

Department of the Treasury

Community Development Financial Institutions Program 21.020 Project grants
To promote economic revitalization and community

development through investment in and assistance to community development
financial institutions

Appalachian Regional Commission

Appalachian Area Development 23.002 Project grants To support the
Appalachian Regional Commission?s

mission to create opportunities for self- sustaining economic development
and improved quality of life in the region Appalachian Local Development
District Assistance

23.009 Project grants To provide planning and development resources in
multicounty areas; to help develop the technical competence essential to
sound development assistance Appalachian State Research, Technical
Assistance, and Demonstration Projects

23.011 Project grants To research or demonstrate the feasibility of plans
and programs for concerted economic and social development

Denali Commission

Denali Commission Program 90.100 Project grants To provide critical
utilities and infrastructure, particularly in distressed areas, to reduce
unemployment and raise standards of living

Environmental Protection Agency

Brownfields Pilots Cooperative Agreements 66.811 Project grants To respond
to environmental conditions inhibiting

redevelopment of brownfield sites and provide financial assistance for
revolving loan funds for brownfield cleanups

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Page 28 GAO- 02- 193 Indian Economic Development

Program name CFDA number Type of assistance Economic development objectives
General Services Administration

Business Services 39.001 Advisory services and counseling To promote the
interest and participation of business

concerns- especially small businesses, small disadvantaged businesses, and
women- owned small businesses- in government procurement Donation of Federal
Surplus Personal Property 39.003 Sale, exchange, or

donation of property and goods

To donate federal personal property no longer required for federal use to
public agencies and qualifying nonprofit entities

National Credit Union Administration

Community Development Revolving Loan Program for Credit Unions

44.002 Direct loans To support low- income credit unions in their efforts to
stimulate economic development activities that result in increased income,
ownership, and employment opportunities for low- income residents

National Foundation on the Arts and the Humanities

Promotion of the Arts/ Grants to Organizations and Individuals 45.024
Project grants To support the visual, literary, media, design, and

performing arts; significant arts programs intended for national
distribution on television or radio; and published creative writers and
literary translators of exceptional talent through individual fellowships

Overseas Private Investment Corporation

Foreign Investment Insurance 70.003 Insurance To insure investments of
eligible U. S. investors in developing countries and emerging markets
against the political risks of inconvertibility, expropriation, and
political violence

Small Business Administration

Business Development Assistance to Small Business 59.005 Advisory services
and

counseling; dissemination of technical information; training

To help the prospective, as well as the present, small business person
improve skills to manage and operate a business

8( a) Business Development 59.006 Provision of specialized services To
foster business ownership by individuals who are

both socially and economically disadvantaged and to promote the competitive
viability of such firms by providing business development assistance
Management and Technical Assistance 59.007 Project grants To provide
business development assistance for

socially and economically disadvantaged businesses Procurement Assistance to
Small Businesses 59.009 Provision of specialized

services To assist small business in obtaining a ?fair? share of contracts
and subcontracts for federal government supplies and services and a ?fair?
share of property sold by the government Small Business Investment Companies
59.011 Direct loans; guaranteed

and insured loans; advisory services and counseling

To establish privately owned and managed investment companies; provide
equity capital and long- term loan funds to small businesses; and provide
advisory services to small businesses Small Business Loans 59.012 Guaranteed
and insured

loans To provide guaranteed loans to small businesses that are unable to
obtain financing in the private credit marketplace but can demonstrate an
ability to repay

Appendix II: Federal Programs Available to Tribes and Tribal Members to Fund
Economic Development Activities

Page 29 GAO- 02- 193 Indian Economic Development

Program name CFDA number Type of assistance Economic development objectives

loans granted Service Corps of Retired Executives Association 59.026
Advisory services and

counseling; training To provide counseling and training to potential and
existing small business owners Small Business Development Center 59.037
Project grants; provision

of specialized services; advisory services and counseling; dissemination of
technical information

To provide management counseling, training, and technical assistance to the
small business community

Certified Development Company Loans (504 Loans) 59.041 Guaranteed and
insured

loans To assist small business concerns by providing longterm, fixed- rate
financing for fixed assets through the sale of debentures to private
investors Women?s Business Ownership Assistance 59.043 Project grants To
fund private, nonprofit organizations to assist,

through training and counseling, small business concerns owned and
controlled by women Veterans Entrepreneurial Training and Counseling 59.044
Project grants To provide long- term training, counseling, and

mentoring to benefit small business concerns and potential small business
concerns owned and controlled by eligible veterans Microloan Demonstration
Program 59.046 Formula grants; direct

loans To assist women, low- income and minority entrepreneurs, business
owners, and other individuals possessing the capability to operate
successful business concerns and to assist small business concerns in those
areas suffering from a lack of credit due to economic downturns Office of
Small Disadvantaged Business Certification and Eligibility

59.049 Direct loans; guaranteed or insured loans To certify and assist small
disadvantaged businesses so

that they can participate in federal procurements a This program was
incorporated into the Department of Commerce?s Economic Development/ Support
for Planning Organizations (CFDA number 11.302) in 2000. Source: CFDA.

(250019)

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