HR-7396-119
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Sponsored by Sharice Davids (D-KS)
What it does
This bill would codify in federal statute the Office of Native American Affairs within the Small Business Administration (SBA), giving it permanent legal authority. The office would be required to build working relationships with federally recognized Indian tribes and Native Hawaiian organizations, and to direct existing SBA programs — covering entrepreneurial development, federal contracting access, and capital access — toward Native American-owned small businesses and economic development in Indian country.
Who benefits
Members of federally recognized Indian tribes and Native Hawaiian organizations who own or want to start small businesses. Tribal communities and Indian country economies broadly, through increased access to SBA lending, contracting, and development programs. Native-owned businesses seeking federal contracts. SBA staff and tribal liaisons who would gain clearer institutional authority and a defined mandate. Rural and reservation-based communities that may see increased economic activity.
Who is hurt
Non-Native small business owners who compete for the same SBA program resources, contracting set-asides, or capital access programs, as targeted outreach may shift a portion of program attention toward Native applicants. Taxpayers who fund SBA operations would bear any incremental administrative costs of formalizing the office. Small businesses in other underserved categories (e.g., veteran-owned, women-owned) could face relatively reduced program emphasis if SBA resources are finite.
Supporters argue
Supporters argue that Native American entrepreneurs face some of the most severe barriers to capital access and business formation of any group in the country — reservation-based businesses often cannot use land as loan collateral due to federal trust restrictions, and tribal communities have poverty rates roughly 2.5 times the national average. They contend that codifying the office in statute ensures it cannot be eliminated by administrative action alone, providing the institutional stability necessary for long-term tribal partnerships and sustained economic development in Indian country.
Opponents argue
Opponents argue that the bill creates a permanent bureaucratic structure without specifying new funding, measurable performance benchmarks, or accountability mechanisms, raising questions about whether it would produce tangible outcomes beyond reorganizing existing SBA activity. They contend that the SBA already operates programs targeting underserved entrepreneurs — including 8(a) Business Development and Community Advantage — and that adding a statutory office layer may duplicate existing functions without addressing the underlying structural barriers, such as trust land restrictions, that most limit Native entrepreneurship.