Within this context, key recommendations and areas of focus include: Internal review of all vendor sourcing across all tribal businesses to identify and develop additional reliable and high-quality sources Encouragement of, investment in and directed purchasing from existing and new AIAN-owned suppliers Reevaluation of customers and product/service lines to identify opportunities for additional direct or spinoff/leveraged markets, including increased tribe-to-tribe selling Lobbying and pursuit of government grants, loan programs and other incentive programs to support new, expanded or diversified production and distribution Active discussions at the association level and tribe-to-tribe of networks and consortiums to aid supply chain diversification Strategic planning and investment with a focus on longer return cycle development to allow new diversifying business ventures time to establish their markets Further exploration of tax advantages and other regulatory benefits of tribal development and tribe-to-tribe transactions, as well as tribe to non-tribal sources, to market and support new diversification efforts. FINANCING & WORKOUTS New tribal consortiums and new business ventures of individual tribes will require financing that will not be cookie cutter and may be forced to accept a longer amortization schedule. Other physical and operational adjustments yet to be discussed in individual tribal business sectors during the transitional recovery phases will also require financing coming off or even in the midst of a severely disrupted period of operations. Also, unavoidably given the severity of the crisis, workouts and refinancing will be needed to enable otherwise viable but capital and cash starved existing tribal ventures to survive the crisis and receive the time needed to return to a normal footing, recognizing that normal will not necessarily look the same. Even the shift in inventory and supply chain practices will require adjustment in operating capital support. This will all take place during a period where, despite the best efforts of the Federal Reserve, credit will almost certainly tighten due to changes in underwriting perspectives and rules. It will require an uncomfortable reliance on forward looking statements or equally uncertain reliance on pre-pandemic operating performance levels to support expectations of capital repayment that cannot be realistically supported by current or immediate past cash flow.
∴ PRESCRIPTIONS
104
Made with FlippingBook - Online catalogs