Chapter 3.16 SMALL BUSINESS FUND ORDINANCE

This Small Business Fund Ordinance is enacted by the Puyallup Tribal Council (“Council”) to set forth the manner in which the Tribe will administer the Small Business Fund consisting of $2,000,000 created by the Settlement Agreement of August 27, 1988. That Fund was created by Section VI(B) of the Agreement “to be used to support and assist in the development of business enterprises by tribal members.” The ordinance codified in this chapter is adopted pursuant to Section VI(1)(f) and (g) of the Constitution of the Puyallup Tribe. [Res. 061290 (12/06/90) § 101]

3.16.020 Use of Fund.

The Fund shall be used to generate earnings which will in turn be used to award grants to Tribal members who wish to start or expand business enterprises. The principal of the Fund shall not be expended for any purpose. The grants shall be of the types and subject to the guidelines set forth in this chapter and in the rules and regulations (Chapter 3.16R PTC) which will be adopted to implement this chapter. [Res. 061290 (12/06/90) § 102]

3.16.030 Definitions.

(a) “Appeal board” shall mean an ad hoc body appointed by the Council to review a decision of the Administrator as provided in this chapter.

(b) “Council” shall mean the Puyallup Tribal Council.

(d) “Fund” shall be the Small Business Fund created by the Settlement Agreement dated August 27, 1988.

(e) “Fund Administration” or “Administration” shall mean the Small Business Fund Administration created by this chapter.

(f) “Fund Administrator” or “Administrator” shall mean the individual employed as the lead staff person in the Small Business Fund Administration.

(g) “Net earnings” shall mean the gross interest or other revenue earned on the Small Business Fund beginning on or about March 27, 1990, less the expenses of operating the Small Business Fund Administration, including service charges paid to the financial institution which manages the Fund, and less any other expenses approved by the Council related to the Fund.

(h) “Startup grant” shall mean a grant awarded under Subchapter 4 of this chapter.

(i) “Tribal member” shall mean a member of the Puyallup Tribe of Indians.

(j) “Tribe” shall mean the Puyallup Tribe of Indians. [Res. 061290 (12/06/90) § 103]

Subchapter 2. Small Business Fund Administration

3.16.040 Creation.

There is hereby created a department of Tribal government entitled the Small Business Fund Administration. The Administration shall consist of at least one part-time employee or private contractor who shall be the Small Business Fund Administrator. The salary of the Administrator, as well as other costs of operating the Administration, shall be paid from earnings on the Fund. [Res. 061290 (12/06/90) § 104]

3.16.050 Grant guidelines and rules of procedure.

(a) The Administrator shall draft and recommend to the Council a set of rules and regulations (Chapter 3.16R PTC) which shall govern such matters as:

(1) Eligibility guidelines and criteria for grants under this program;

(2) Procedures for considering and making decisions on grant applications;

(3) Disbursement procedures and conditions to ensure that recipients use grant funds for purposes and in a manner permitted by this chapter and the rules and regulations;

(4) Procedures for Tribal members to obtain the assistance of the Administrator in preparing business plans;

(5) Procedures for the operation of ad hoc appeal boards created under PTC 3.16.170;

(6) Other matters relevant to operation of the Administration and the program.

(b) The Council shall adopt the rules and regulations recommended by the Administrator with any modifications the Council may choose to make. The Council may, from time to time, make amendments to the rules and regulations either upon the recommendation of the Administrator or on its own initiative after consultation with the Administrator. [Res. 061290 (12/06/90) § 105]

3.16.060 Award of grants.

The Administrator shall make decisions concerning the award of grants under this program to grant applicants. Those decisions shall be based on the standards set forth in this chapter and spelled out more fully in the rules and regulations (Chapter 3.16R PTC). [Res. 061290 (12/06/90) § 106]

3.16.070 Assistance to Tribal members.

The Administrator shall, subject to the guidelines adopted in the rules and regulations (Chapter 3.16R PTC), provide assistance to Tribal members in preparation of business plans, applications for grants under this program, applications for federally guaranteed loans, and such other matters as the rules and regulations may set forth. [Res. 061290 (12/06/90) § 107]

Subchapter 3. Grants – General

3.16.080 Grants.

The Tribe shall use the net earnings from the Fund to make grants to eligible Tribal members for two purposes:

(a) To start or expand a business which is 100 percent owned by Tribal members (startup grants as described in Subchapter 4 of this chapter); and

(b) To be used as equity by a Tribal member who obtains a federally guaranteed loan from a financial institution for use in a business which is 100 percent owned by Tribal members (equity grants as described in Subchapter 5 of this chapter).

The principal of the Fund shall not be expended for any purpose. [Res. 061290 (12/06/90) § 108]

3.16.090 Application.

The guidelines set forth in Subchapter 3 apply to startup grants and to equity grants. In addition, the guidelines set forth in Subchapter 4 of this chapter apply to startup grants and the guidelines set forth in Subchapter 5 of this chapter apply to equity grants. [Res. 061290 (12/06/90) § 109]

3.16.100 Eligible persons.

To be eligible for a grant under this program, a person must be an enrolled member of the Tribe and 21 years of age or older. [Res. 061290 (12/06/90) § 110]

3.16.110 Eligible businesses.

To be eligible for a grant under this program, a person must use the grant to start or expand a business enterprise which is 100 percent owned by Tribal members. [Res. 061290 (12/06/90) § 111]

3.16.120 Limitation on use of grants to pay salaries and wages.

The Administrator shall include in his/her recommended rules and regulations (Chapter 3.16R PTC), and the Council shall adopt, limitations on the amount of grant funds that can be spent for salaries and wages for the grantee and related persons. [Res. 061290 (12/06/90) § 112]

3.16.130 Conditions on disbursement of grants.

The Administrator shall include in her/his recommended rules and regulations (Chapter 3.16R PTC), and the Council shall adopt, procedures and conditions for the disbursement of grant funds to ensure that the funds are used solely for purposes permitted by this chapter and the rules and regulations. [Res. 061290 (12/06/90) § 113]

3.16.140 Reporting requirements.

The Administrator shall include in her/his recommended rules and regulations (Chapter 3.16R PTC), and the Council shall adopt, reporting requirements that will inform the Administrator of the uses to which grantees are putting grant funds. [Res. 061290 (12/06/90) § 114]

3.16.150 Successive grants.

If an applicant has received a previous grant, s/he is not eligible for another grant until at least one year has passed since receipt of the previous grant. [Res. 130291 (02/13/91); Res. 061290 (12/06/90) § 114.5]

3.16.160 Consideration of grant applications.

(a) The Administrator shall process applications and disburse funds to applicants in the order that the applications are received; provided, however, that an application for an equity grant shall not be deemed received until the applicant has received from the lending institution, and communicated to the Administrator, approval for her/his federally guaranteed loan or approval conditioned on the applicant providing equity satisfactory to the financial institution. All applications for startup grants and applications for equity grants shall be included on a single list for the purpose of determining the order of consideration.

(b) If the remaining net earnings from the Fund are at any time not sufficient to make the appropriate grant to the first applicant in order of priority, further payment of grants shall be delayed until sufficient earnings have been generated. Payments shall not be made to the second, third, or other applicants in order of priority, even though sufficient funds are available for that purpose, until the appropriate grant has been paid to the first applicant in order of priority.

(c) In cases where the first applicant in order of priority has submitted a business plan, as required by PTC 3.16.190, that is determined to be insufficient by the Administrator, or has submitted an application that is in some other way insufficient, the following procedure shall be used. In addition to offering assistance to the applicant as provided by PTC 3.16.070, the Administrator shall proceed to make grant payments to the applicant(s) who is (are) next in order of priority. At such time as the application, including the business plan, of the applicant first in order of priority is satisfactory so that his/her grant application has been approved, s/he shall resume his/her position as first in order of priority and shall, at that point, be the next person to receive grant funds. [Res. 061290 (12/06/90) § 115]

3.16.170 Appeal from certain decisions.

If an applicant wishes to appeal a decision made by the Administrator not to award a startup grant, s/he shall give a written notice of appeal to the Council and the Administrator. The Council shall appoint an ad hoc three-person appeal board for the consideration of that appeal. The three members of the appeal board shall be persons generally knowledgeable in the field of business development and operation. The board shall issue a decision within 30 days after submission of the notice of appeal to the Council and Administrator. [Res. 061290 (12/06/90) § 116]

Subchapter 4. Startup Grants

3.16.180 Startup grants to be awarded.

A one-time startup grant of up to $3,000 may be awarded to each otherwise eligible applicant who, in addition to meeting the guidelines set forth in Subchapter 3 of this chapter, meets the standards set forth in this Subchapter 4. Any person who has previously received an equity grant under Subchapter 5 of this chapter shall not be eligible for a startup grant. [Res. 061290 (12/06/90) § 117]

3.16.190 Business plan.

Each applicant must present with his/her application a business plan for the enterprise in which the grant funds are to be used. The Administrator shall not award a grant to an applicant unless the Administrator finds that the applicant’s business plan demonstrates a reasonable probability that the business will be successful. [Res. 061290 (12/06/90) § 118]

3.16.200 Education and counseling.

The Administrator shall have the discretion to require, in appropriate cases, that the applicant spend up to 10 percent of the grant funds on education and counseling designed to offset the applicant’s insufficient training and/or experience related to the proposed business venture. [Res. 061290 (12/06/90) § 119]

Subchapter 5. Equity Grants

3.16.210 Equity grants to be awarded.

A one-time equity grant shall be awarded to each otherwise eligible applicant who has obtained a federally guaranteed loan, or would be able to obtain a federally guaranteed loan if s/he had sufficient equity capital to devote to the business venture. [Res. 061290 (12/06/90) § 120]

3.16.220 Amount of grants.

Each equity grant shall be the lesser of $15,000 or 25 percent of the applicant’s federally guaranteed loan. In cases where the applicant has previously received a startup grant under Subchapter 4 of this chapter, the amount of the equity grant to be awarded shall be reduced by the amount of the startup grant the applicant has already received. [Res. 061290 (12/06/90) § 121]