Harness Mega Economic Forces with Specialized Tribal Corporations!

By Vince DelaRosa 10/14/2024

There is a rare breed of Specialized Tribal Corporations (STC) that offer unmatched business and investing excellence. Not much is known about this topic. Business and investment developments with STC are truly unmatched. Let's take a closer look.

---

WHAT ARE STC?

STC are legal business structures that can grant some tribes the autonomy to operate businesses distinct from tribal government. This ensures that only the corporation's assets are leveraged. STC can also function as a governmental business with sovereignty and financial integrity in tow, and as a real leverage point. STC can operate on or off reservations in all 50 states, and internationally.

---

With personal and corporate tax savings of over 15% respectively, STC have the potential to become an Axis of business and investment power. The truth is, a STC can far outperform anything on Wall Street!

STC offer unique advantages for joint venture opportunities with tribes, making them an attractive solution across various industries. These businesses possess special economic privileges that can significantly enhance operations and profitability.

Key Advantages

Non-Dilutive Capital Access

STC can provide non-dilutive capital to JVs and LPs, allowing partners to maintain and enhance their equity and control while benefiting from tribal business collaborations.

This capital can be used for:

• Funding operations

• Expanding into new markets

• Strategic acquisitions

Here are two real examples of capital we can potentially tap into with a STC.

1.) $150,000,000.00M

2.) $1,321,200,000.00B

Favorable Tax Treatment

STC enjoy significant tax benefits:

• Federal income tax exemption

• Potential state and local tax exemptions

• Capped corporate tax rate of 6.5% in some cases

  
  

These tax advantages can lead to substantial cost savings and increased profitability for JVs and LPs, with potential savings north of 15%.

Exclusive Business Pipelines

Partnerships with STC can unlock access to curated business opportunities exceeding $20 billion annually, including:

• Federal government contracts. There is a vast quantity of documented contracting accessible in this area. We can tap into data analytics to harvest significant revenue growth in this area. This is not an exclusive opportunity, but there is a method to leverage and hedge choices in this sector for significant financial results. See the chart below, $176,000,000,000.00B. THIS IS NOT HYPERBOLE!

• Tribal economic development projects: There are over a hundred projects annually that can easily outperform anything on Wall Street.

• Inter-tribal business collaborations: STC can enter larger economic stages. Including JVs or LPs around publicly traded companies, advanced hedge funds, a tribal trading desk, ETFs, M&A deal making, a private tribal investment bank, and advanced private credit markets. Interestingly, Native American casino investments can occur under special rules.

Courtesy of the GovCon Chamber

Leveraging Tribal Sovereignty

Tribal sovereignty provides STC with a degree of autonomy and flexibility in operations.

This can lead to:

• Streamlined regulatory processes

• Customized business environments

• Protection of business assets through sovereign immunity

By forming strategic JVs and LPs with tribal business interests, companies can tap into these powerful economic advantages. The combination of non-dilutive capital, favorable tax treatment, and access to exclusive business pipelines creates a unique opportunity for growth and success across various industries.

Emerging Business Model with Extraordinary Funding Options

Funding opportunities for tribes and tribal business interests are diverse and substantial, offering various avenues for financial support. Uniquely, some of these funds could interact with STC dealmaking.

Here's a summary of just a few funding sources and their potential annual funding levels:

Federal Funding Tribal Broadband Connectivity Program

This program provides grants to expand broadband access on tribal lands and promote remote learning, telework, and telehealth resources.

Funding levels:

• Broadband Infrastructure Deployment Projects: $1,000,000 to $50,000,000

• Broadband Adoption and Use Projects: $50,000 to $2,500,000

Local Assistance and Tribal Consistency Fund

This general revenue enhancement program offers additional assistance to eligible tribal governments.

Funding levels:

• $250 million allocated annually for fiscal years 2022 and 2023

• Total of $500 million reserved for eligible tribal governments

Bureau of Indian Affairs (BIA) Programs

BIA offers various funding opportunities for tribal governance, economic development, and natural resource management

Funding levels:

• Tribal Priority Allocations: $902.8 million (2023 budget proposal)

• Consolidated Tribal Government programs: $86.2 million (2024 budget)

• Small Tribes Supplement program: $23.0 million (2024 budget)

• Tribal Climate Resilience program: $48.0 million (2024 budget)

State and Other Funding Sources

While specific state funding varies, tribes can often access additional resources through state-level programs and private philanthropic organizations.

Funding Options and Considerations

1. Self-Governance Compacts: Tribes can negotiate compacts with the federal government to manage their own programs and services. The 2024 budget includes $240.8 million for compact activities. This could spawn public-private partnerships, while also leveraging local TIFs.

   
   

2. Contract Support Costs: The 2024 budget proposes $431.4 million for Contract Support Costs to cover administrative expenses for tribally operated programs.

   
   

3. Economic Development Initiatives: The 2024 budget includes $39.4 million for economic development programs.

   
   

4. Infrastructure Funding: The 2024 budget allocates $51.3 million for Road Maintenance on tribal lands.

   
   

5. Natural Resource Management: $385.9 million is proposed for trust natural resources activities and climate resilience initiatives in the 2024 budget.

   
   

While these funding opportunities are significant, it's important to note that the actual amounts available may vary based on annual appropriations and specific program requirements.

If you would like to leverage these unique advantages and achieve superior results, we can help you. To learn more about STC opportunities, feel free to reach out here.