Last month the Treasury Department released new guidance on allocating its remaining 1.8 billion Tribal Economic Development Bonds (TEDBs) aimed at promoting economic growth in tribal communities. Established under the American Reinvestment and Recovery Act (ARRA), TEDBs provides tribes with the authority to issue tax-exempt debt for a wider range of activities to spur job creation and promote economic growth in Indian Country.
According to the Treasury Department:
Under the new guidance, Tribes can receive TEDB allocations for projects which are in the final stages of going to the market to receive financing. Once a Tribe receives an allocation, it will have six months to move to final debt issuance. If a Tribe is unable to issue within that time frame the allocation will be returned to Treasury and available for redistributions.
With significant Tribal input and consistent with President Obama’s Memorandum on Tribal Consultation these new guidelines will help Tribes break new ground as they continue to develop their local economies and communities.
To read more about the guidelines click here.