Change Labs commits to deploy $13.3 million in loans to Navajo businesses

Change Labs’ new lending opportunity leverages the Navajo Small Business Credit Initiative (NSBCI) to finance established business owners, artisans and nonprofits

Tuba City, Navajo Nation (AZ)  — In a bid to catalyze small businesses on the Navajo Nation and foster economic growth, Change Labs — in partnership with the Navajo Nation Division of Economic Development (DED), the Dineh Chamber of Commerce and the Navajo Regional Business Development Office (RBDO) — has launched its Navajo Small Business Credit Initiative (NSBCI) programming, which includes two new loan programs designed to uplift and empower Navajo business owners, artisans and entrepreneurs in taking the next step towards business growth.

““I am really looking forward to small businesses thriving, new ones starting, changing existing ones from feeling they were forgotten,” Navajo Nation President Nygren said.  “We want business to grow and become bigger, to hire more people. We’re trying to change the narrative by investing in our own communities.”

The NSBCI loan program is part of the US Treasury’s State Small Business Credit Initiative (SSBCI), created in 2010 by Congress to increase access to credit for small businesses. As a result of the pandemic, Congress expanded the SSBCI to include Tribal governments, allocating $500 million for Tribes to invest in small businesses owned by tribally enrolled citizens and nonprofits controlled by tribal members. 

“With the funding available, hundreds of Navajo entrepreneurs could access loans to grow or strengthen their business or nonprofit beyond what they thought possible,” said Heather Fleming, executive director of Change Labs. “Whether you’re looking to expand your business or nonprofit, improve seasonal financing, invest in additional resources, hire new staff or build an emergency fund, the opportunities are seemingly endless.”

Change Labs’ NSBCI goal is to deploy $6.65 million in loans over the next three years to Navajo-owned businesses and has secured a 1:1 match commitment from partnering financial institutions for a total of $13.3 million. To get its investment out to Navajo businesses, Change Labs will rely on three important partners: the first is Native Community Capital, a Native CDFI in Phoenix, Arizona providing business and mortgage loans in Indian Country; the second is Nusenda Credit Union, a longstanding lending partner of Change Labs’; the third is First Southwest Bank, a CDFI providing business loans across Southern Colorado.

The NSBCI will offer loan guarantees and participating loan amounts from $5,000 up to $20 million. Eligible businesses and nonprofits can submit pre-applications for NSBCI loans through Change Labs starting August 5, 2024.  

To prepare potential borrowers for the process of applying for a loan, Change Labs offers a wide range of services including financial education and training programs, executive coaching, mentorship and network building. Their business incubator program has been increasingly successful in providing its participants with long-term business support — from learning the fundamentals of starting a business to accessing resources such as brand development, legal support and lending opportunities.

“Change Labs' Kinship Lending financial education classes were enlightening for me,” said Stella Keams, owner of Stella Keams Jewelry. “At the end of the program, I accounted for each cent of my money. I received a five thousand dollars loan at the beginning of my training. Living on the Navajo reservation, the ease of this loan was bewildering to me.”

For more information about the NSBCI and to apply for a loan, please visit nativestartup.org/nsbci.