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CED-78-50 1 (1978-02-15)

handle is hein.gao/gaobaawvf0001 and id is 1 raw text is: 



DOCOURIT RISOM


05315 - [B06255261
Bore Federal bffozts Feeded To Improve Indians' Standard of
Living through Business Development. CED-78-50; B-11e068.
February 15 1978. 58 pp. + 2 appendices (4 pp.).
Report to Sen. Robert C. Byrd. Chairman# Senate Committee on
Appropriations: Interior Subcommittee; bj Elmer B. Sraats,
Comptroller General.
Issue Area: Program Evaluation Systems (2600).
Contact: Community and 3conouic Development Div.
Budqet Fuanctions 6.aeral Government: Other enezal Governmeat
     (806) , Rsvenue Sharing and General Purpoue fiscal
     Assistance: Other General Purpose fiscal Assistance (652).
 Orqanization Concerned: Bureau of Indian Afftzirs Depactuot of
     the Interior; Economic Development StainLstration.
 Conqrexsional Relevance: House Committee on laterio and InSuMIa
     Affairs; Senate Committee on Appropriat~ons: Interior
     Subcoanittee; Senate Select Coumittee on Inidian Affairs.
     Sen. Robert C. Byrd.
 Authority: Indian Financing 'ct of 1974.

         The Indian Financing Act of 1974 van enacted to
stimulate economic development on In6iau reservations by
increasing the availability of funds for startiag and expandiag
Lusiness enterprises.  Findings/conclusioas: light Weleal
agencies admiistering 25 grant, loam* and technical assistance
proqzmas hare not been very successfnl because the Indian
reservations are met generaIl7 vell suited for business
devtlopment. Some of the reservations have Aittle potential for
success vithout long-tere Federal assistance. Prom fiscal years
1975 through 177. the Economic Development Administration JRDA)
and the Bureau of Indian Affairs (91A) have provided $294
million through loans and grants to help establish businesses on
Indian reservations. In 45 industrial prks financed by IDA. the
number of businesses decreased since 1973. Deficiences in DII
administration has caused the loan and grant prograus to stter
from delinquencies# inadequate accounting systems, poor analysis
-if loan and grant applications, missing documents in loan and
grant files# inadequate loan servicing# shcrt repayment terms.
and limited provision of technical assistance. &bout 300.000
Indians are not eligible for loans because of certain
prohibitions in the act. Iecomendationst the Administrator of
ED& and the assistant Secretary for Iudian Afftairs should be
directed cooperatively to: (1) conduct an economic feasibility
study that identifies reservations most likely to support
self-sustaining economic development and carry out a
comprehensive business development prcgram; and (2) decide
whether long-t er Federal support should be provided to develop
other reservations or whether alternative strategies are needed
and, if so. nov strategies should be developed and proposed to
the Congress. The Assistant Secretary for Indian affaLis should

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