Indian Tribes and their enterprises are also eligible for the $454 billion loan guarantee funds and $349 billion under the U.S Small Business Administration (SBA) Loan 7(a) Program. The question for Tribes is, “How do we apply for the funding and how can we leverage the funds to address for COVID-19 unbudgeted expenses?”
Sean McCabe, CPA (Navajo), managing member at McCabe CPA Group LLC and McCabe Consulting, along with his professional associates are working to track the various funding and understand their application and compliance processes.
“Tribes are concerned they’re going to have to pay a lot of money to lobbying firms to go after funding the CARES package has allocated to Indian Country,” says McCabe. “The idea is to be proactive and package our services for identifying funding, walking them through application, implementing the funds, and then assuring compliance for audit.”
The CARES Act provides employment funding for enterprises needing cash flow to sustain their payroll. There is also funding for economic development upgrades to infrastructure, specifically access to broadband. What’s still unknown are the financial risks associated with the various options and loans that may inadvertently affect sovereignty waivers and audit accountability structures.
McCabe’s service packages are intended to protect Tribes from incurring interest on loans that should be forgiven if used and accounted for purchase of protective equipment (PPE) and other COVID-19 related expenses. McCabe assures his clients are setup financially by offering expertise to assist Tribal economic portfolios with accounting practices to protect Tribal governments and enterprises.
“In the past, when the government approved stimulus money, Tribes had difficulty figuring out the compliance and accounting that led to some issues,” he explained. “We want help with the internal processes within guidelines for compliance to ensure there are no audit issues. Those are the type questions that the Tribes have been asking us over the past few days.”
McCabe and his associates are monitoring developments closely to provide accurate and timely information to their clients. They are also looking at ways to assist Tribes by offering forbearance of payment for services and donating portions of their proceeds to support Tribes impacted by COVID-19. “We are committed to giving back,” says McCabe.
If your Tribal organization or enterprise is in need of assistance in applying for stimulus funding and creating a plan for leveraging funds and ensuring accountability, contact McCabe CPA Group LLC at (505) 798-2550 or at [email protected] Also see the McCabe Consulting COVID-19 Fact Sheet pertaining to Tribal stimulus funding at http://mccabe.consulting/tribal-covid-19-fact-sheet/.