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What is an ANC?

Alaska Native corporations (ANCs) and Tribes participation in the 8(a) Program is a component of meeting the Federal Government’s trust responsibility to provide for a sustainable Native economy as required by treaties, the Constitution, statutes, and court cases.

The Small Business Administration (SBA) 8(a) Business Development Program was enacted in 1958 to help small disadvantaged businesses compete in the American economy, and more specifically, in the Federal contracting arena. To qualify for this Program, a firm must be a small business, unconditionally owned and controlled by one or more socially and economically disadvantaged individuals, and demonstrate a potential for success.

Under the SBA’s 8(a) Program, a small disadvantaged business is defined as one that is at least 51% owned by one or more individuals who are both socially and economically disadvantaged.

A Federal agency can award a contract to an 8(a) company without competition if it meets certain criteria. Congress made a distinction because unlike other minority or disadvantaged-owned businesses where profits generally go to one individual or one family, the profits from ANCs and Tribes are shared by hundreds – sometimes even thousands – of tribal members or Native shareholders.

Section 8(a) does not give an advantage to an unqualified or under-qualified company, nor does the 8(a) Program guarantee a contract; it only makes ANCs and Tribes eligible for a contract. For any 8(a) company, participation is limited to 9 years maximum, during which there is a required phase-in of competitive work.

The 8(a) Program provides an incubation period enabling these companies to enter the marketplace and demonstrate the ability to perform; after that, they are on their own. The 8(a) provisions have enhanced the effect of ANCSA, namely making government contract opportunities available to qualified ANCs as part of the settlement.

ANCs’ and Tribes’ annual revenues, ability to pay dividends, provide scholarships, support cultural programs, and create job opportunities for our tribal members, shareholders, and their families is an indication of the success of ANCSA and the 8(a) Program – Federal Indian policies that work.
Alaska Native People

Iñupiat, Yup’ik, Cup’ik, Siberian Yupik, Tlingit, Haida, Tsimshian, Eyak, Athabascan, Aleut, and Alutiiq. We are Alaska Natives, the indigenous people of Alaska. Our people have inhabited our traditional lands for over 10,000 years. Today, there are approximately 120,000 Alaska Natives and more than 230 Alaska Native Villages. Many of our people reside in their traditional rural Native villages, living a subsistence lifestyle and maintaining our cultural traditions.

Alaska Native Land Claims

In the history of the United States, Native Americans are the only group to have our aboriginal lands, cultures, economies, rights, institution, and sovereignty appropriated, converted and/or extinguished. The Alaska Statehood Act passed in 1959, failed to protect or preserve Alaska Native land. In response, Alaska Natives formed the Alaska Federation of Natives (AFN) in 1966 to pursue our Native landclaims. AFN’s efforts resulted in a land freeze in 1966: there would be no more transfers of land to the State of Alaska until Native land claims were resolved.

Oil was discovered at Prudhoe Bay in 1968, resulting in plans to build the 800-mile long Trans-Alaska pipeline. Alaska had to settle our Native land claims prior to the commencement of the pipelineconstruction and any oil development. On December 18, 1971, the Alaska Native Claims Settlement Act (ANCSA) was signed into law
(P.L. 92-203).

ANCSA was a unique settlement for Alaska’s Native people – a statutory treaty between the United States Government and Alaska’s Natives. Never before, had Native Americans received independence in land, social, and economic affairs management. ANCSA’s stated goal and premise was Native American self-determination through full-scale participation in the traditional American economic model. The stated goal of these social enterprises, called Alaska Native corporations, was to build economic self-sufficiency while addressing the social and cultural needs of our people. This hybrid was a striking difference to the Federal Indian policy of Lower 48 reservations and oversight by the Bureau of Indian Affairs, which at that time was viewed as a failure. ANCSA divided the State of Alaska into regions whose boundaries were naturally formed to respect and represent the indigenous people’s heritage. Alaska Natives alive on December 18, 1971 were given 100 shares in one village corporation and one regional corporation based on their geographical and cultural ties. Native corporation stock is inalienable; it cannot be bought, sold, or traded. Shareholders are bound to their Native corporations’ successes or failures. At the time of the establishment of the 13 regional corporations and over 200 village corporations, $962.5 million in compensation and 44 million acres of land – a fraction of their traditional land claim – were shared with Alaska Natives. Over the last 35 years, our Native corporations have become a component of our indigenous identity; they are part of our history, culture, and our children’s future.