Difference Makers 2.0 is a new yearlong series from Native CDFI Network and Tribal Business News that highlights how Native community development financial institutions (CDFIs) work alongside their small business clients to accelerate change and create economic opportunities in Native communities.
In this latest episode, “Difference Makers 2.0” sits down with Chi-Ishobak Executive Director, Sean Winters, and clients Wayne Roberts, his wife Julie, and their three children, Meagan, Jordan, and Justin who pitch in to help with the family business, Great Lakes Flooring Specialists Inc. This Native-owned small business found support in Chi-Ishobak to grow their flooring business from a single hospital contract to a thriving regional company.
Chi-Ishobak was officially founded in 2009, and began lending in 2012. To date, the CDFI has closed some 1,224 loans — including 80 commercial small business loans — to the tune of $17 million.’
Executive Director Sean Winters describes the Chi-Ishobak’s evaluation of potential borrowers as “less invasive” than traditional banks. Borrowers are evaluated not just on their ability to pay, but also on their willingness to pay.
“Our whole mission includes responsible lending, and we also want to create an enjoyable experience for our tribal citizens,” Winters said. “That willingness component has allowed us to be a little bit more alert when we are going through our applications.”
Wayne Roberts, a citizen of the Sioux St. Marie Tribe of Chippewa Indians, had been installing commercial flooring for 35 years when he had the opportunity to start his own flooring business in 2015.
The business soon became Great Lakes Flooring Specialists Inc. and grew into a family affair, with Wayne’s wife, Julie, and his three children, Meagan, Jordan, and Justin, all pitching in.
With each job — as is standard in the commercial flooring industry — Great Lakes Flooring had to pay upfront for supplies before completing a job, with payment coming 40-60 days after billing. For large commercial jobs, those upfront costs could run upwards of $100,000.
In addition to issuing Great Lakes Flooring a $50,000 line of credit to help fill the cash flow gaps between ordering supplies and receiving full payment, Chi-Ishobak gave the Roberts family technical assistance to grow their business acumen.
“They were able to give us knowledge, not just capital,” Jordan said. “They provided coaching and support and helped us figure out what we were doing wrong and what we were doing right. We would not have gotten far without them.” From a single hospital contract to a thriving regional company, Great Lakes Flooring Specialists Inc. was built on tradition and teamwork. Listen to episode two to discover how this Native family-owned small company, found success with the help of Chi-Ishobak.
BENTON HARBOR, Mich., and Dowagiac, Mich. – The Women’s Business Center (WBC) at Cornerstone Alliance recently announced a partnership with Chi Ishobak, Inc.
The WBC is the leading regional provider of technical, business, and financial assistance to small businesses and entrepreneurs. In partnership with the U.S. Small Business Administration (SBA), the WBC emphasizes assisting women, people of color, veterans, and socially or economically disadvantaged individuals.
Chi Ishobak, Inc., promotes the improvement of the financial capacity of all Tribal members by equipping them with the skills, knowledge, and confidence that they need to make informed judgments and to make effective decisions concerning their current and future personal and household circumstances.
“The Women’s Business Center at Cornerstone Alliance is excited to announce the partnership with Chi Ishobak, Inc., in support of native entrepreneurs by providing technical assistance that will enable them to secure much-needed capital to start and grow their businesses,” said Kristen Patzer, Director of the WBC.
This partnership acts as a referral program, sending Tribal Citizens to the WBC to prepare them with necessary business materials before requesting a loan. The WBC will provide free one-on-one business counseling to assist aspiring entrepreneurs with business plan creation and more.
By building capacity for Tribal Citizens, Chi Ishobak, Inc., is helping rebuild the Pokagon Band of Potawatomi as well as Indian Country into supportive and nurturing communities, strong in language and culture.
“I cannot express how excited Chi Ishobak, Inc. is to partner with Cornerstone Alliance and the Women’s Business Center to provide Small Business Development assistance to tribal entrepreneurs,\” said Sean Winters, Chi Ishobak, Inc., Executive Director. \”The high level of expertise, experience, and resources the WBC brings to Chi Ishobak’s Commercial Loan Program contributes another layer of opportunity for both start-up and existing Native-owned businesses.”
Cornerstone Alliance is a non-profit, investor-governed economic development organization. Our focus is to increase employment opportunities, private sector capital investments, and the local tax base in Michigan\’s Great Southwest. We offer specialized business services, particularly in economically distressed areas. For more information: https://cstonealliance.org/
About Cornerstone Alliance Small Business Services We provide technical, business, and financial assistance to small businesses with an emphasis on income-disadvantaged and women-owned businesses. The Women\’s Business Center at Cornerstone Alliance is funded in part through a Cooperative Agreement with the U.S. Small Business Administration. For more information: https://www.cornerstonewbc.com/
One of our longtime partners at Chi Ishobak has been Steve Rider, Government Manager at Pokagon Band of Potawatomi. We started working with Steve when he lived in Seattle. Despite not growing up in the Michigan area, he began learning about his tribe as it started communicating with citizens afar.
He learned about Chi Ishobak from this connection at the perfect time. He and his wife were beginning a women’s self-defense training studio in Seattle and needed the capital to start the business. Not only were they able to get funding, but they received coaching from Sean and our team to build their business plan.
Later, Steve retired from his career as a law enforcement officer and relocated to Michigan to get to know the tribe better. He re-entered the workforce in our area and later became Government Manager with the tribal government, a role which he describes as “Ensuring that what the council sets forth is accomplished.”
Over the years, he’s also taken out auto loans with Chi on a few occasions. Steve praises Chi’s ability to deduct payments from stipends so that it’s easy to stay up-to-date on payments. Then over time, clients build up a credit history and a good credit score without ever having to think about it.
He also adds, “I’ve been impressed from the government perspective on how much effort goes into citizen services from Chi.”
To anyone that wants to improve their financial health, Steve recommends starting with a phone call to Chi. Because they are so focused on helping citizens, they will happily refer you to someone who can help if you aren’t a fit for the loans they offer. They want to be a true partner with tribal citizens and give them the tools they need to be successful. “To those on the fence about working with Chi, contact them and they’ll point you in the right direction.”
One of the most important things that Chi Ishobak offers is its budgeting tools and philosophies. Steve says for him it’s been life-changing and, “After just a few years of working with Chi and taking their advice and guiding my own personal finances, it has really paid dividends for me.”
We’re happy to work with Steve both as a client and as a partner in helping to empower tribal citizens.
(July 2020) After years of working in Human Resources and Talent Development – along with a stint in Culinary school in NYC – J Dutton has taken a much-loved hobby and side hustle and is turning it into a full-fledged business. A very sweet one.
J elaborates: \”I created BrOn’s Confections in 2012. It has been a hobby/home business since then. I am now purchasing commercial equipment and am trying to transition this into a true business.
Inspired by the single mother who raised the family working 2 or 3 jobs, the name BrOn\’s is a combination of her maiden name and the family\’s last name: Br’ from Bristol/Brown and ‘On’ from Dutton. J recalls \”She was the proudest and strongest person I ever knew. She sacrificed a lot for us kids. She passed in 2005 from complications from COPD that she developed while working in a plastic factory. This is a way to honor her and keep her memory alive.\”
While he is still currently looking for investors, J expounded on how he connected with Chi Ishobak for help launching his business. \”I’ve worked with Chi since I began working for the Pokagon Government in 2016. I embraced the history and culture completely. When I was furloughed and my position eliminated due to the COVID shutdown, part of my soul was taken. I was able to work with Chi as part of the Pokagon umbrella but have also been able to collaborate with them on projects. When I started looking for funding to start purchasing some equipment to start the transition to a full business, Chi was my only thought. I trust them and know they have my back.\” Sean Winters, Chi Ishobak\’s Executive Director said “Our CDFI was created as an effort of the Pokagon Band of Potawatomi Indian tribal government to assist businesses get started or expand, and J\’s venture is right up our alley. Happy to be part of this growing business!\”
With bon bon\’s, barks, bars and cheesecakes, BrOn\’s has got something for every sweet tooth and appetite. Take a look (and a bite!) at www.bronsconfections.com.
About Chi-Ishobak
Chi Ishobak is a 501(c)(3) non-profit organization that was established in 2009 promote the improvement of the financial capacity of all Tribal members by equipping them with the skills, knowledge and confidence that they need to make informed judgments and to make effective decisions with respect to their current and future personal and household circumstances. Chi Ishobak provides tribal citizens with the tools and opportunities needed for meaningful lives and self-sufficiency, whether through employment, self-employment, or traditional life-ways.
By building capacity for Tribal Citizens, Chi Ishobak is helping rebuild the Pokagon Band of Potawatomi as well as Indian Country into supportive and nurturing communities, strong in language and culture. For more information: www.chiishobak.org
Dowagiac, MI – Flagstar Bank is keeping a promise and commitment to diversity, equity and inclusion in the communities it serves by giving $1 million in grants to help small businesses owned by Black, Indigenous and people of color whose operating expenses are impacted by COVID-19. Flagstar has partnered with Chi Ishobak to vet and administer the grants.
\”Matt Wesaw, Tribal Chair, made a connection with Flagstar a few weeks ago and this opportunity was presented\” said Sean Winters, Executive Director of Chi Ishobak. \”Matt felt this would be a good fit for us and made the introductions and we were able to find a fit between our organizations. It is another positive opportunity for our small native-owned businesses to continue along the road of recovery.\”
Chi Ishobak will be marketing the grants to their current clients, but are also available for any black, native or people of color-owned business within the Flagstar target markets of Michigan, Indiana and California. Chi will be providing 18 grants of $5,000 each.
Interested applicants can find out more information by going to www.chiishobak.org. To apply, you will need to provide: Most recent tax filing, most recent two months of bank statements, a Certificate of Good Standing and a W-9.
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $29.5 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 160 branches in Michigan, Indiana, California, Wisconsin and Ohio. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 87 retail locations in 29 states, representing the combined retail branches of Flagstar and its Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage and other consumer loans, handling payments and record keeping for $227.4 billion of loans representing slightly over 1.1 million borrowers.
Dowagiac, MI – Sean Winters, Executive Director of Chi-Ishobak, announced that the Opportunity Finance Network (OFN) awarded Chi Ishobak $50,000 as part of the COVID-19 CDFI Grant Program. Generously supported by Morgan Stanley, this program aims to deliver critically-needed flexible funds to smaller CDFIs in OFN’s membership with under $20 million in total assets. “We could not be more grateful for this grant” said Winters. “This will help us provide tremendous opportunity to our tribal citizens during this challenging time.”
Lisa Mensah, president and CEO of OFN says \”We continue to fight for small businesses, nonprofits, and community-based organizations that have been hit hardest by the economic impact of COVID-19 and for communities that continue to struggle against persistent racial and economic inequality. With its generous grant, Morgan Stanley is empowering our member lenders that specialize in serving these communities to grow and remain strong in these uncertain times.\”
In all total, OFN awarded $4.9 million in funding. Of the awardees, 19 percent are Native CDFIs and 56 percent are led by people of color. In addition, more than half the client base of 73 percent of awardees are people of color or living in persistent poverty or rural communities.
About OFN
Opportunity Finance Network (OFN) is the national association of community development financial institutions (CDFIs). We help money flow to people and places where traditional finance doesn’t reach by maximizing the effectiveness of OFN member and non-member CDFIs through direct financing, learning opportunities, industry events, and advocacy.
OFN represents and serves a diverse membership of more than 300 CDFIs of various asset sizes and lending types working on the ground in all 50 states. OFN’s network of community development loan funds, banks, venture capital funds, and credit unions help people realize their full potential and contribute to thriving communities.
Through 2018, OFN’s network originated $74 billion in communities across all 50 states, including rural, urban, and Native areas. We are proud of our impact so far, and seek to do even more in terms of jobs, small businesses, affordable housing, and community services.
TROY, Mich., Nov. 9, 2020 /PRNewswire/ — Flagstar Bank is keeping a promise and commitment to diversity, equity and inclusion in the communities it serves by giving $1 million in grants to help small businesses owned by Black, Indigenous and people of color whose operating expenses are impacted by COVID-19. Businesses owned by people of color have been especially hard hit by COVID-19, with nearly half of black-owned businesses shuttered by the pandemic.
Qualifying small businesses can submit applications now through Nov. 20 for grants of $5,000. Flagstar has partnered with BIPOC nonprofits in its key banking markets to vet and administer the grants. Qualifications include diverse ownership, revenues of no more than $1 million, and a location within Flagstar Bank\’s footprint of Michigan; Fort Wayne and South Bend, Indiana; and the High Desert of San Bernardino County, California. Additional qualifications, grant uses and other information are available in the application.
\”We hope to combat the narrative that there is no assistance for minority-owned businesses,\” said Dwan Dandridge, CEO of Black Leaders Detroit, one of the nonprofit partners. \”We were founded to serve the entrepreneurs to do more with less. We are proud to team up with Flagstar to help these businesses survive, thrive and enhance the vitality of our communities.\”
\”We have a commitment to our communities and to keeping our promises to them,\” said Alessandro DiNello, CEO of Flagstar Bank. \”Reversing decades of systemic inequities is a marathon, and we are in it to the finish. These grants are an important milestone along the way to making our communities and our company better and more equitable for all.\”
All business information submitted with the applications will be confidential. Businesses selected to receive grants will be notified Dec.4, with funds disbursed a few days later.
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $29.5 billion savings and loan holding company headquartered in Troy, Mich.Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 160 branches in Michigan, Indiana, California, Wisconsin and Ohio. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 87 retail locations in 29 states, representing the combined retail branches of Flagstar and its Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage and other consumer loans, handling payments and record keeping for $227.4 billion of loans representing slightly over 1.1 million borrowers.
OFN is pleased to announce 70 awardees of the COVID-19 CDFI Grant Program, totaling $4.9 million in funding. Generously supported by Morgan Stanley, this program aims to deliver critically-needed flexible funds to smaller CDFIs in OFN’s membership with under $20 million in total assets.
“We continue to fight for small businesses, nonprofits, and community-based organizations that have been hit hardest by the economic impact of COVID-19 and for communities that continue to struggle against persistent racial and economic inequality,” said Lisa Mensah, president and CEO of OFN in a recent press release. “With its generous grant, Morgan Stanley is empowering our member lenders that specialize in serving these communities to grow and remain strong in these uncertain times.”
Of the awardees, 19 percent are Native CDFIs and 56 percent are led by people of color. In addition, more than half the client base of 73 percent of awardees are people of color or living in persistent poverty or rural communities.
Here are the COVID-19 CDFI Grant Program awardees:
Beaufort County Black Chamber of Commerce ($150,000)
Harlem Entrepreneurial Fund, LLC ($150,000)
Legacy Redevelopment Corporation ($150,000)
ACT! Albany Community Together, Inc. ($100,000)
AEDC (Arcata Economic Development Corporation) ($100,000)
Akiptan ($100,000)
ASSETS ($100,000)
Chicago Neighborhood Initiatives Micro Finance Group, Inc. ($100,000)
Children\’s Investment Fund ($100,000)
Corporacion para el Financiamiento Empresarial del Comercio y de las Comunidades ($100,000)
JARI Growth Fund, Inc. ($100,000)
La Fuerza Community Development Corporation ($100,000)
Lake Superior Community Development Corp ($100,000)
Landmarks Community Capital Corporation ($100,000)
Lummi Community Development Financial Institution ($100,000)
NHS of San Antonio ($100,000)
Northwest Native Development Fund (NNDF) ($100,000)
People Trust ($100,000)
People, Inc. Financial Services ($100,000)
Redbud Financial Alternatives, Inc. ($100,000)
Solita\’s House Inc. ($100,000)
Southwest Georgia United Empowerment Zone, Inc. ($100,000)
Wind River Development Fund ($100,000)
Wisconsin Native Loan Fund, Inc. ($100,000)
Woodlands Community Lenders ($100,000)
AAFE Community Development Fund, Inc. ($50,000)
Access Plus Capital ($50,000)
African Development Center ($50,000)
African Economic Development Solutions ($50,000)
Appalachian Community Capital Corporation ($50,000)
Baltimore Community Lending ($50,000)
Brazos Valley CDC, Inc. ($50,000)
Bridge Investment Community Development Corporation ($50,000)
Chi Ishobak, Inc. ($50,000)
Enterprise Development Fund of Erie County ($50,000)
Entrepreneur Works ($50,000)
First Children\’s Finance ($50,000)
FORGE Community Loan Fund ($50,000)
Four Bands Community Fund ($50,000)
Four Directions Development Corporation ($50,000)
Hartford Community Loan Fund, Inc. ($50,000)
Hmong Wisconsin Chamber of Commerce, Inc. ($50,000)
IMPACTO Fund, Inc. ($50,000)
Just Community ($50,000)
Kentucky Habitat for Humanity ($50,000)
Latino Economic Development Center (MN) ($50,000)
Lei Hoolaha ($50,000)
LHOME CDFI ($50,000)
Local Enterprise Assistance Fund ($50,000)
Maryland Capital Enterprises, Inc. ($50,000)
Micro Enterprise Services of Oregon ($50,000)
NACDC Financial Services, Inc. ($50,000)
Nakoda-Aaniiih Credit Agency ($50,000)
Native360 Loan Fund, Inc. ($50,000)
Neighborhood Development Center ($50,000)
Northside Community Development Fund ($50,000)
Opportunity Resource Fund ($50,000)
Pennsylvania Assistive Technology Foundation (PATF) ($50,000)
Rising Tide Community Loan Fund ($50,000)
River City Capital Investment Corporation ($50,000)
Rural Investment Corporation ($50,000)
Shared Capital Cooperative ($50,000)
Southern Mutual Financial Services, Inc. ($50,000)
Triple Bottom Line Foundation (TBL Fund) ($50,000)
True Access Capital Corporation ($50,000)
Utica Industrial Development Corporation ($50,000)
Venture North Funding & Development ($50,000)
Westminster Economic Development Initiative, Inc. (WEDI) ($50,000)
Dowagiac, MI – Sean Winters, Executive Director of Chi-Ishobak, announced that the U.S. Department of Treasury’s Native American CDFI Assistance (NACA) Program awarded $700,000 to the Michigan-based non-profit organization to offer products and services to build capacity for Tribal Citizens in the areas of professional and personal finance.
“This is a tremendous opportunity for Chi-Ishobak,” said Winters. “This is the largest grant we have received from the NACA program, and will help us provide tremendous opportunity to our tribal citizens – both personally, and for those wanting to start or are in business.”
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) was established to expand economic opportunity for underserved people and communities by supporting the growth and capacity of a national network of community development lenders, investors, and financial service providers. The CDFI Fund’s Native American CDFI Assistance Program (NACA Program) was created specifically to help Native Communities thrive and grow by increasing their access to credit, capital, and financial services.
\”I am proud to announce the fiscal year 2020 CDFI Program and NACA Program Award Recipients,\” said CDFI Fund Director Jodie Harris. \”These organizations are providing vital economic development and financial services to neighborhoods, businesses, and families. I am especially proud that we have 91 new organizations receiving awards this year, expanding the opportunity of this program to even more communities across the country.\”
Overall, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded 397 Community Development Financial Institutions (CDFIs) $204.1 million in awards, which can facilitate the creation and advancement of Native CDFIs and can be used for lending capital, loan loss reserves, capital reserves, financial services, and development services.
About the NACA Program:
The origin of the Native Initiatives can be traced back to 1994 when Congress mandated, through the CDFI Fund\’s authorizing statute, a study on the lending and investment practices in Native Communities. The findings revealed that Native American, Native Alaskan, and Native Hawaiian communities face unique challenges to economic growth. These obstacles include heightened barriers to accessing capital and basic financial services, as well as increased difficultly interacting with private and public sector programs. With this in mind, the CDFI Fund created the Native Initiatives to further support the creation and expansion of Native CDFIs. Native CDFIs help Native Communities thrive and grow by increasing their access to credit, capital, and financial services. The Native Initiatives program uses a combination of financial, technical assistance, and training to build the capacity of CDFIs serving Native Communities.
We at Chi Ishobak hope this letter finds you and your families in good health as the country continues to move forward. This is an important reminder you need to be aware of.
As the economy continues to strengthen and gain momentum, Chi Ishobak’s Administrative Deferment Period is ending. Per our previous correspondence, the Administrative Deferment Period is effective from May 1, 2020, through July 31, 2020. Loan Payments will resume and are due August 1, 2020.
There have been substantial changes during the past few months. Mainly, the suspension of Per Capita Distributions by the Tribe due to the closing of Four Winds Casino Resort operations. As a reminder, Per Capita direct deposits are only a payment method. Not receiving Per Cap does not mean that you are not required to make your loan payments. You need to select an alternate payment method to satisfy your debt service.
WHAT DO YOU NEED TO DO
Please choose the payment method below that you utilized prior to the COVID-19 Administrative Deferment to determine how you will make your loan payment(s) moving forward. If you have any questions, please contact us at (269) 783-4157.
Clients utilizing PER CAPITA – For clients utilizing Per Capita Distributions, you need to contact our office to discuss an alternative method of payment. Please note that if you do not contact us or if your contact information is not updated and we cannot communicate with you and loan payments are not made, your loan may become delinquent and may reach default status resulting in legal action.
Clients Utilizing ACH – Payments will continue to be deducted utilizing the bank account on file. If you wish to change accounts, please contact our office. Please not that moving forward, ALL loan payments will be due on the 1st or the 15th of every month. Please contact our office if your original payment date is not set up on either one of these dates for further discussion.
Clients utilizing ADP through Employee Payroll – Payment dates in August will vary depending on your employer. If you have been furloughed or are no longer employed with the company, we ask that you contact us as soon as possible to arrange a new preferred payment method.
Clients utilizing Four Winds Payroll Deduction – If you have remained employed or have recently been brought back into your position after being furloughed, no changes need to be made. If you are no longer employed with Four Winds Casino, we ask that you contact us as soon as possible to arrange a new preferred payment method.
CONTACT US
We understand there is still a variety of situations that our clients are experiencing. While everyone is being affected in a different way, we need to do our best to move forward. We also realize you may have questions and concerns as we move forward, just know that we are here to work with our clients as much as possible within our capacity.
Please contact us by phone at (269) 783-4157 or email us at info@chiishobak.org to ensure that you are prepared to resume loan payments on August 1, 2020. We are maintaining limited office hours from 10:00 AM to 3:00 PM until further notice. We will be available to speak with you in person by appointment-only following restrictions and guideline recommendations by the CDC and the Tribe.
Take care, be safe, and be healthy, The Chi Ishobak Team
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