ROSEBUD – The Rosebud Sioux tribal council heard an update on a Uniform Commercial Code (UCC) proposal which would allow tribal citizens and businesses better access to capital.
Michael LaPointe, of the Sicangu Co. economic development office, shared statistics and other information about the proposed UCC at Rosebud. The proposal will also be presented to the economic development committee for further consideration.
A UCC Financing Statement is a legal document that gives a creditor a security interest in a debtor’s property. It is used to protect the creditor in the event of bankruptcy or other financial hardship. A UCC financing statement is also required for many businesses to obtain loans from banks and other financial institutions. Rosebud does have a commercial code in place under Title Fourteen, but a UCC financing statement with the state has never been approved.
LaPointe also shared statistics which show that a half a billion dollars leaves Todd County every year. Most employed tribal citizens must shop at off reservation businesses to buy the items they need for their household and family. If nothing changes, estimates are that this export of dollars to off reservation businesses will continue to grow at four percent per year.
A goal is to find out ways to keep that money from leaving the reservation and that cannot be done without retail stores and other businesses. Most tribal citizens regularly travel to off reservation business such as restaurants, large variety stores (Walmart, Target), clothing and other stores to buy what they need because these products and services are not available locally. Developing local businesses to serve the needs of tribal citizens in Todd County alone would create over six hundred new jobs.
In addition, statistics from 2019 showed the Rosebud Sioux Tribe having 30,203 people registered as citizens with the enrollment department. An estimated 11,510 of these tribal citizens between the ages of eighteen- and sixty-five-year-olds were unemployed. This put the tribal unemployment rate for 2019 at 75.02 percent.
Also, if Rosebud’s population continues to grow at the current rate, in the year 2040 there would be an estimated 70,513 tribal citizens registered with the enrollment department. If nothing changes, the number of eighteen- to sixty-five-year-olds who face unemployment would be an estimated 31,478 or 88.44 percent.
Partners in Performance (PIP) worked with Sicangu Co to develop a ten-year economic development roadmap focused on plans to expand in the areas of wind energy, bison ranches and local construction. If successfully implemented the roadmap could (1) double the economic growth rate from 2 percent to 4 percent, (2) create 3,000 or more new jobs and (3) increase economic diversification and create economic resilience. PIP also developed a partnership and capability development plan to support the tribe in successfully implementing the economic development roadmap.
Two South Dakota tribes have adopted Uniform Commercial Codes, improving access to financial capital. The Cheyenne River Sioux Tribe has created programs to support financial access and tribal business development. Also, the Oglala Lakota Nation provides loans, micro loans and financing on their tribal lands. The memorandum of agreements these tribes have with the state does not waive tribal sovereignty as all disputes are settled in tribal court. Both tribes now have improved their access to capital and some Rosebud tribal citizens have gotten financing from them to operate businesses in Todd County.
UCC filing requirements for special housing projects and new business in South Dakota are: (1) must be filed with the South Dakota Secretary of State’s Office, (2) must include name and address of the debtor, (3) must include name and address of the secured party, (4) description of the collateral, (5) statement indicating that the financing statement is being filed to perfect a security interest in the collateral, (6) must be signed by both the debtor and the secured party and (7) is effective for five years from the date it is filed.
The November 22, 2023, Rosebud Sioux tribal council meeting can be viewed in it’s entirely on YouTube.
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