NACDC Financial Services’ mission is to provide ... · In October of 2018 we funded our first home loan. Since then our home loan portfolio has accumulatively grown to over 12 totaling

NACDC Financial Services’ mission is to provide alternative financing opportunity for Native American entrepreneurs and small businesses in communities in and near Indian Reservations. NACDC Financial Services has three primary business goals:

1. To fill an alternative financing gap in its initial and expanded target market that is not being filled by existing financial institutions within that market.

2. With the help of collaborating partners, better prepare individuals and businesses to participate in and benefit from the broader economy.

3. Achieve a scale of operations that is both financially sustainable and beneficial to the Indian communities we are committed to serving.

MESSAGE FROM OUR EXECUTIVE DIRECTOR

STRENGTHENING BUSINESSES AND FAMILIES

OPPORTUNITY FOR YOUTH AND ARTISTS

FIVE YEARS OF IMPACT

SUMMARY OF UNAUDITED FINANCIALS

MESSAGE FROM OUR

Greetings from Montana Indian Country!

As the Executive Director for NACDC Financial Services, Inc. I’m proud of the growth we have accomplished in the last few years.

On the staff side, we have grown from 3 employees to 10, with 80% being Native American and 70% being female. This great group is hard working and has assisted in

the phenomenal growth of our organizational capacity in technology, financial management, loan portfolio, and new programs.

Our startup programs consist of Business and Credit Builder lending with the accompanying training programs. In response to the demand in the agriculture and native artist communities, we added Ag loans and a Native Artists line of credit in 2015 and 2016, consecutively.

In 2017 following Land Buy Back on the Blackfeet Reservation, many tribal members could not secure loans utilizing their land leases which they had traditionally done through the Tribal Credit Program. To meet this demand, we established a small lending program and were bombarded with over 500 requests. We were able to fund 260 of those loans and those that couldn’t qualify became clients of our credit builder program. We now have accumulated 747 Short Term Loans over 2 years totaling $723, 700.

In 2017 we also responded to the community need and established Native Cash. The construction of the building to support this program was finalized in July 2018. With the hiring of 4 staff, we now have a one–stop cash service providing check cashing, ATM, Western Union and money orders.

In October of 2018 we funded our first home loan. Since then our home loan portfolio has accumulatively grown to over 12 totaling $874,512.

I’m very proud of our growth and the impact we have made throughout Indian Country. We couldn’t have accomplished this without the support of our Board of Directors and our outstanding partners! Thank you all and enjoy the merits of your support through this annual report.

Angie MainExecutive Director

businesses and families

Credit Builder

Consumer

Home Assistance/Real Estate

Small Business

Agriculture

Micro-Business

Artist

In 2018 NACDC Financial Services disbursed

loans totaling . We made loans in 14 counties across 5 states (servicing all 8 reservations in Montana). We also started our home lending program which has positively impacted our portfolio and helped families advance their goals of homeownership. We moved our offices to a new location, continued our support of artists and youth, and saw growth in our Native Cash program.

112

In September of 2018 a local tribal member, Darrell Hall, recognized a new business opportunity when an off–reservation plumbing company wanted to sell their porta potty business. Darrell discovered that there was a demand for this service on the Reservation and thus he went to work to take advantage of the opportunity. His first step was to work with NACDC Financial Services to create a business plan and financial projections. As part of this work to plan the business, NACDC Financial Services helped him recognize that he would need additional inventory to meet the demand on the reservation. He applied for a loan through NACDC Financial Services in order to purchase the equipment from the off–reservation company and to purchase several new units.

Once the loan went through, Darrell showed true courage by quitting his job with the county road department – a job that provided stability and good benefits – to pursue his dream of owning his own business. Darrell will be the only full–time, year–round employee, but he expects to hire seasonal employees this summer and there is potential for expansion in communities just off the Reservation and into related businesses. While not the most glamorous business, this business will provide a living for at least one family and recycle money

back into the local economy that was previously leaving the Reservation and not returning.

If it wasn’t for NACDC Financial Services, I wouldn’t have been able to start my business and fulfill my dream to be a business man.

- Darrell Hall, Owner of D and D Portables

number and amount of loans deployed by type

17

12

11

7

4

3

$628,805.27

$182,187.74

$592,787.75

$499,813.27

$122,046.58

$20,207.00

$11,208.00

We offered different

trainings on different reservations. These

trainings allowed individuals to increase their skills and education in various financial literacy and business topics.

Native Cash is a nonprofit, one-stop financial services center. Services include counseling about agriculture, business, Native American arts, home loans, and the consumer credit builder program. Native Cash also offers short-term loans where individuals can borrow up to $1,000 on a one-year limited basis at 12% interest.

Dear Ladies of NACDC Financial Services,

It is with great admiration and sincerity that I send you all this heartfelt thank you. NACDC Financial Services has went above and beyond in helping myself and my daughters get through the challenges of selling their father’s home when he passed unexpectedly.

I know that you ladies put a lot of time and personal thoughts into helping me purchase the home from them. We were in a catch 22 and you don’t know the weight that was lifted off all of our shoulders when NACDC Financial Services approved the loan.

Thank you all again for the sincerity.

Donna Hoyt

NACDC Financial Services recently started offering home loans and have already realized the impact of doing so. In 2018 alone we closed 7 loans totaling $592,787.75. One of our home loan clients reached out and her story highlights the importance of our organization’s ability to provide home loans to our clients:

A trainer shared a story of impact from a repeat training attendee in 2018 :

After the training, she set a goal to purchase a vehicle by the end of the year. As part of creating her budget, she tracked her expenses for a month and realized that she spent over $200 a month on makeup that she never actually used. By cutting out those makeup purchases, she was able to afford a down payment for her vehicle and was able to meet her goal!

This is just one example of the impact that attending a training and implementing the tools can have on participants!

short-term loans totaling

The Mini–Bank Program offers hands–on education for youth to learn financial basics. Youth develop good saving habits, financial confidence, and the independence to make smart financial decisions in the future.

Napi Elementary Mini–Bank Board has students participating in 3 board meetings as tellers during their school’s banking day.

A 4–part financial literacy class is conducted at a high school as a

graduation requirement. Over the four classes, there were student participants.

4 students, ages 9–13, participated in a 5–week youth small business class. The students created short business plans with profit and loss statements. The students pitched their business idea to a group of community business leaders and received a total of in funding toward their businesses!

The Montana Indian Youth Business Internship program funded for a total of .

for youth and artists Danny Kennedy is a 6th grader enrolled at CutswoodBlackfeet Emersion School. Danny opened an account with the Blackfeet Mini–Bank Program in late 2016. The program provides savings accounts to students through Native American Bank. With encouragement from his Dad, he started depositing small amounts of money each week. During the second school year he had the account, the Mini–Bank program offered a number of incentive programs, including matched deposits and an award for the student who deposited the greatest number of times. Even though Danny only deposited small amounts each time, he was so consistent that he won the prize ($100 cash) and was matched for most of his deposits. Through this process he not only learned how to save but has developed the habit of saving. He even deposited his birthday money instead of spending it right away.

During this time, he noticed that he was thinking about what he bought more. “If I have it in the bank, I don’t spend it on stupid things.” Danny said as he described how he started to think differently about purchases. He now has savings goals for bigger purchases that are more likely to last.

In the fall of 2018 NACDC Financial Services ran a 5-week program called the Blackfeet Youth Business Kick-Starter Program. Danny participated in this class and at the end competed in the pitch night, where he won an award in which he used the funds on inventory and continues to turn profits as he sells snacks at school and other events.

Watch this video about the

Mini-Bank Program!

I did want to be a teacher, but now I think I want to be an entrepreneur or business owner.

- Danny Kennedy, Youth mini-bank saver and business kick-start program participant

In March of 2018 the Celebration of Native Plains Artists took place in Great Falls, MT. The event showcased the work of Native American artists. NACDC Financial Services supports artists in selling their work and in providing programs, resources, and education for Native entrepreneurs and small business owners. Artists can apply for a Native Artist line of credit and NACDC Financial Services also offers a Native Artists Professional Development (NAPD) course to four Montana Reservations. The course teaches Native artists important business skills and the knowledge to support themselves as full-time artists.

One of the many artists supported by NACDC through displaying their work at the Celebration of Native Plains Artists was Browning native Newton Racine.

At the age of ten, Newton’s life was turned upside down. He was diagnosed with a cancerous brain tumor. Newton would undergo surgery, chemotherapy, and radiation. His love for sports and the outdoors was put on hold. “I was really active in school, did all the sports. But after that, I healed and got that done with, I had to be homeschooled for a long time,” Newton said. It would not take long before he would find another passion. “I knew I couldn’t do the stuff I used to do, so I went to art,” Newton said.

He attended college at the Blackfeet Community College and took the few art courses they offered. In 2008, he enrolled in at the University of Montana and majored in art. Due to his limited learning abilities caused by his childhood illness, he would leave college. But Newton did not give up. “I found a passion in this, I thought of it as a gift,” Newton said.

He was accepted into Missoula’s Opportunity Resources program, which helps adults with disabilities. “I don’t like people to feel like they can’t do anything or are hopeless.” Now the 38 year–oldis featured in art shows, something he never thought would

happen. “It’s exciting, I don’t believe it. I couldn’t believe that I could do stuff like this and I can.”

Newton’s passion is in painting and pottery. He focuses on piecesthat relate to his culture. “It takes patience and time. After you get it and learn, it’s fun,” Newton said. Newton beat cancer and said he lives a healthy lifestyle today.

I found a passion in this – I thought

of it as a gift.- Newton Racine,

artist featured at the Celebration of Native Plains Artists, hosted by NACDC Financial Services.

14 counties in 5 states

3 counties in 1 state

5 counties in 2 states

7 counties in 2 states

11 counties in 4 states

184% growth

26% growth

105% growth

55% growth

…Credit Builder

From 2014 – 2016 represents 74% of loans and 40% of loan values

ConsumerFrom 2014 – 2016 represents

9% of loans and 11% of loan values

Micro-BusinessFrom 2014 – 2016 represents

3% of loans and 2% of loan values

Small BusinessFrom 2014 – 2016 represents

6% of loans and 27% of loan values

Home Assistance/Real EstateFrom 2014 – 2016 represents

4% of loans and 17% of loan values

AgricultureFrom 2014 – 2016 represents

2% of loans and 4% of loan values

ArtistFrom 2014 – 2016 represents

1% of loans and 0.5% of loan values

11289

7369

44

1718

112

1

44

42

119

65

2

127

11

75

32

$628,805.27$447,968.88

$350,320.54$305,074.72

$182,187.74$195,212.89

$97,372.76

$20,207.00$20,207.00

$10,000.00$22,550.00

$499,813.27$389,813.27

$182,000.00$157,000.00

$140,262.82

$20,000.00$5,000.00

$35,000.00

$592,787.75$198,744.75

$7,000.00$7,000.00

$122,046.58$61,140.58

$11,208.00$10,208.00

Geographic Distribution by Year

Loan Volume by Year

Loan Volume by Year and by Loan Type

$180,262.82

$511,624.72

$646,693.30

$1,323,295.37

$2,057,055.61

trainings to

people

In three years

people trained

trainings

trainings

trainings people trained

people trained

2017 2018

average increase in amount disbursed

and number of short-term loans made

641 loans

242 loans

$246,300 disbursed

$625,300 disbursed

2015 2016 2017 2018

Number of Accounts

Total Amount in Accounts

artist participants

in three years2016

9 artists2017

20 artists2018

20 artists

237 217 211 257

$25,348$17,245$17,208$18,212

ASSETS 2014 2015 2016 2017 2018

Cash and Cash Equivalents $235,298 $109,525 $120,887 $273,612 $1,789,393

Grants Receivable $150,000 $128,633 $389,342 $373,000 $0

Interest Receivable $978 $3,615 $8,415 $13,554 $25,106

Net Loans Receivable $129,398 $351,070 $422,617 $962,422 $1,418,801

Other Current Assets $18,861 $19,447 $10,279 $1,361 $36,148

Total Assets $533,535 $612,290 $951,540 $1,623,949 $3,269,448

FIXED ASSETSNative Cash Building $0 $0 $0 $52,112 $161,280

Company Auto $0 $0 $0 $2,256 $1,760

Total Fixed Assets $0 $0 $0 $54,368 $163,040

LIABILITIES AND NET ASSETSCurrent Liabilities $51,716 $3,111 $147,249 $65,475 $8,493

Long-Term Liabilities $100,000 $342,758 $198,046 $448,101 $1,811,000

Net Assets $381,819 $269,532 $606,245 $1,164,741 $1,612,995

Total Liabilities and Net Assets $533,535 $612,290 $951,540 $1,678,317 $3,432,488

Complete audit available upon request

NACDC – Financial Services would like to thank the following entities for supporting our work:

• Deutsche Bank• First Peoples Fund• Peoples Partners for Community Development• Fort Belknap Indian Community Economic

Development• Apsaalooke Nation Revolving Loan Fund/Little

Bighorn College• Fort Peck Community College• Stone Child Community College• Great Northern Development Corporation• Great Western Living & Design Exhibition• Blackfeet Tribal Employment Rights Office

(TERO)• USDA Farm Service Agency• University Extension Offices

• Montana Indian Equity Fund• USDA Rural Development• US Department of Treasury CDFI Fund• First Nations Oweesta Corporation• Indian Land Tenure Foundation• Kendeda Fund• US Department of Health & Human Services• Catholic Campaign for Human Development• Potlach Fund• Hopa Mountain• Better Way Foundation• Northwest Area Foundation• Tamalpais Trust• Montana• Steele Reese Foundation• MoFi

As pictured from left to right: Tammi Trombley, Native Cash Lead CashierMatt Harrington, Agriculture/Business Specialist and Mini-Bank CoordinatorJames Crawford, Data Coordinator, IT, and Native Cash CashierAngie Main, Executive DirectorTracey Thomas, Native Cash CoordinatorPatty Gobert, Loan Fund AdministratorJoni Comes At Night, Short Term Loan AdministratorKourtney Bull Child, Administrative Assistant

Not pictured: Bob Moore, Operations Manager Paula Crawford, Home Loan Specialist

ROBERTA HARRIS, Secretary/Treasurer

Contracted Project Director with Montana Indian Business Alliance

MELANIE WALL, ChairFinancial Specialist at the Blackfeet Community College

BILLIE JEAN NORGAARDBusiness Instructor for the Fort Peck Community College

JAY MARCUSTribal Consultant. Former Director of Housing Initiatives for the Enterprise Foundation and the Director of the San Jose Redevelopment Office

YOLANDA GOODVOICEBusiness Loan Fund Manager/CDFI Organizer for the Apsaalooke

Nation Revolving Loan Fund

LORETTA BELLCredit Officer for the Fort Belknap Indian Community

ANDREA MAIN, Ex-Officio

Current Executive Director for NACDC-FS

101 Pata Street, P.O. Box 3029Browning, MT 59417

(T) 406.338.2992 (F) 406.338.2751www.nacdcfinancialservices.com

[email protected] or [email protected]