Spotlight: Empowering Native-owned Businesses

The Indian Incentive Program (IIP) fosters new opportunities for Indian organizations, Indian-owned economic enterprises, or Native Hawaiian small business concerns. Established in 1997 under the Indian Financing Act of 1974, the IIP seeks to be an economic multiplier by motivating government contractors to use their best efforts to give Native-owned businesses the greatest opportunity to participate in federal contracts. IIP incentivizes prime contractors by providing them with a five percent rebate on subcontracted work performed by Native-owned businesses, in accordance with the governing program regulation (DFARS Clause 252.226- 7001).

Benefits of the IIP include: economic multiplier for Native communities; expansion of industrial base with Native-owned businesses; promotion of a secure and diverse industrial base; introducing healthy competition for growing companies; and boosting economic growth through subcontract generation.