Spruce Root 2022 Annual Report

2022 Annual Report

COVER PHOTO: Hoonah, Alaska.

LEFT: Sustainable Southeast Partnership regional catalysts spent the day harvesting, processing traditional foods and identifying intertidal creatures alongside youth in Hoonah in preparation for a community meal at Hoonah Culture Camp Haa Tóo Yéi Yatee.

Photos by Kaa Yahaayí Shkalneegi Muriel Reid

Vision

We amplify our Haida, Tlingit, and Tsimshian ancestral imperative to ensure Southeast Alaska thrives for future generations.

Mission

We are a driver of a regenerative economy across Southeast Alaska so communities can forge futures grounded in this uniquely Indigenous place.

Values

Balance Reciprocity

Native Knowledge Indigenous Stewardship Progress over Perfection Learning at the Speed of Trust

Equity

Abundance

Letter from the Executive Director

In 2022, Spruce Root celebrated its 10-year anniversary. As I look back on the last decade, it is clear to me that a small group of people can achieve great things. We started out as a lending institution, and through trials and the willingness to fail forward, we have become much more than that. We are a driver of a regenerative economy across Southeast Alaska.

Our team has grown significantly since 2012, expanding our capacity to deliver essential community and economic development services throughout the region. Collaboration has been key to our ability to grow. By developing relationships with local partners, we are better poised to effectively support community-identified priorities. It is through our relationships that we received funding for important projects like Alaskan Youth Stewards and the community forest partnerships.

Spruce Root’s triple-bottom-line approach to economic development values profits, people and planet – equally. This work must center place. Through having a true connection to the local ecosystem, we can better prioritize meaningful outcomes that will benefit generations to come.

As the world explores new ways of working, so does Spruce Root. In 2022, we centered the importance of wellness throughout the region and within our workplace. Beginning last year, Spruce Root implemented a wellness leave for employees to take necessary healing time to participate in activities that promote wellness, such as taking care of family or taking a week to devote to subsistence.

Our longest-running program, the Path to Prosperity Business Competition has been reimagined: we launched Path to Prosperity Business & Balance, a nine-week course for building community-centered businesses and thriving entrepreneurs. This new course forms the centerpiece of our competition, and allows us to serve more participants with increased quality and an intentional focus on well-being. In addition, Spruce Root delivered more than 270 hours of support to entrepreneurs, the most cumulative hours of support we have ever delivered over the course of a year. We are seeing a surge of interest in new business ventures, in our region, across the state, and nationwide. To meet this demand, we continue to seek ways to improve our services and products offering to meet the unique needs of Southeast Alaska’s entrepreneurs. We created a pilot program called Resilience

Circles, a one-year program that supports the wellness of Indigenous entrepreneurs. Our goal is to enhance the vital role of Alaska Native enterprises in ecosystem guardianship, long-term economic resilience, comprehensive well-being and the mental health of Alaska Native communities.

One of our biggest endeavors yet, the Seacoast Trust represents a large-scale shift of investment and decision-making power from those who control the funding to the communities and peoples of Southeast Alaska. Grounded in Indigenous values, annual earnings from the Seacoast Trust will fund the projects and programs of the Sustainable Southeast Partnership in perpetuity. Having reached an initial milestone of raising $20 million in 2022, the Trust hopes to grow to $100 million so that we can expand programs already proven valuable in the region through the Sustainable Southeast Partnership.

Without trust and deep relationships, none of this work would be possible. I am deeply thankful to our Southeast communities, inspiring entrepreneurs, our hard-working team and our Board of Directors for their guidance and vision for a resilient Southeast Alaska.

With gratitude,

Gah Kith Tin Alana Peterson

Photo by Bethany S. Goodrich

Costa Brava, 2022 Winner Path to Prosperity Business Competition

Alaskan Youth Stewards Kake Crew

Yakutat River Rangers

Hoonah Native Forest Partnership

Klawock Indigenous Stewards Forest Partnership

KLUKWAN

PELICAN

SKAGWAY

Seasonal Workforce Orientation

JUNEAU

TENAKEE SPRINGS

ANGOON

KAKE

PETERSBURG

WRANGELL

KLAWOCK

THORNE BAY

KASAAN

KETCHIKAN

Beneficial Electrification

Where We Work

Spruce Root’s work spans the entire region of Southeast Alaska, including 23 communities. In 2022, we directly supported individuals and projects in 16 unique communities throughout Southeast Alaska including Angoon, Craig, Haines, Hoonah, Hydaburg, Juneau, Kake, Kasaan, Ketchikan, Klawock, Klukwan, Metlakatla, Petersburg, Sitka, Skagway, Wrangell and Yakutat.

New Earth Fungi, 2022 Winner Path to Prosperity Business Competition

How We

Technical Assistance

Our services for small businesses include one-on-one coaching, group workshops, and business planning. We provide access to education, networking, and funding so that regenerative businesses are equipped to fulfill their potential.

Workforce Development

We provide customized career coaching and workshops that teach technical skills, financial planning, soft-skills, and leadership, supporting Southeast Alaskans in their education and career goals.

CDFI/Business Loan Program

Community development financial institutions (CDFIs) are a different kind of lender. We are mission driven to pro vide small businesses with financing opportunities for asset growth to start-up capital for emerging entrepreneurs. We provide responsible, affordable loans to people who are unable to get it from a traditional bank — as well as technical expertise to help them succeed.

We Work

Sustainable Southeast Partnership

The Sustainable Southeast Partnership is a dynamic collective uniting diverse skills and perspectives to strengthen cultural, ecological, and economic resilience across Southeast Alaska. Our network includes Tribal governments, community-minded organizations, local businesses, Native corporations and entities, culture bearers, educators, state and federal agencies, storytellers and more.

Seacoast Trust

Grounded in Indigenous values, annual earnings from the Seacoast Trust will fund a different kind of conservation: one that understands people and communities are inseparable components of a healthy environment. If we want thriving rivers and forests, we need mechanisms that shift power and resources to the people living here.

Community Facilitation

We work with communities around Southeast Alaska to amplify their priorities. We offer strategic planning services, facilitation support, and community planning to nonprofits, Tribes, and local governments across Southeast Alaska.

Workforce Development

Workforce development programming saw the continued growth of our one-on-one career coaching service, which met its goal of supporting 10 individuals in 2022. Thus far the program has supported the career development of non-profit employees, contractors, cooperative owners, graphic designers, business managers, and SSP catalysts to name a few.

Our workforce development focus continues to support our rural communities and villages. Workforce development staff worked to support Indigenous forest partners in Klawock, Kake, and Hoonah in funding and scheduling training opportunities, and also supported the professional development of Alaska Youth Stewards through end-of-season soft skills training, presentation supports, project mapping exercises, and a career panel discussion.

2022 was a banner year for youth workforce development. Staff worked to support over 100 Indigenous youth through Sealaska intern support and Sealaska Heritage Institute summer camps. Additionally, workforce development staff worked with the Sitka Tribe of Alaska on their youth employment program, which served seven youth over three months with a focus on work readiness, career navigation, and empowerment. Reviews for this program were positive and will continue into summer 2023.

Workforce development of the SSP also has been a priority, and workforce development staff have supported the SSP administration in facilitating project planning and management sessions for catalysts during the fall retreat in Haines. Additional workforce development projects included the completion of community needs assessments through the Rural Innovations Stronger Economies project, the facilitation of two community needs conversations in Yakutat and Hoonah, and the continued facilitation of monthly workforce development calls which have grown from an average of seven to 20 participants from across the region.

Michael Mausbach Workforce Development Program Manager

Photo by Lee House

Kake Alaska Youth Stewards move rocks for the community clam bed garden project.

“I learned more about my employees, co-workers, and colleagues, and saw some of the younger participants really take something positive away from the training! Some spoke more than I have ever heard them speak, so clearly, they felt empowered and safe.”

— Participant from Soft Skills and Work Readiness Course

Technical Assistance

The Technical Assistance team experienced significant growth and delivered several new services to the region in 2022. Spruce Root partnered with Sealaska Heritage Institute to develop the curriculum for the Business Basics for Artists program, where we served Alaska Native artists and Sealaska shareholders and also delivered two workshops to inmates at the Lemon Creek Correctional Center.

Spruce Root partnered with the Central Council of Tlingit and Haida Indian Tribes of Alaska on their startup grant program, delivering Business Basics to Tlingit & Haida citizens to pair education with grant funding.

Spruce Root crafted and piloted Business & Balance in 2022, and wove it into our Business Competition, becoming a more efficient and equitable version of Business Boot Camp. We accomplished all this while continuing to deliver our Business Basics, Business Competition, and Business Coaching programs.

In sum, our business programs for entrepreneurs served 250 clients, delivering 272 hours of assistance, resulting in more than 60 completed business plans and unlocking $125,000 in external grant funds for entrepreneurs.

Ashley Snookes Technical Assistance Program Director

Photo by Connor Meyer NaMee Erickson, left, and Wooshkindeinda.aat. Lily Hope listen as Ricardo Worl speaks during a panel featuring Juneau business owners during the Path to Prosperity Business Basics Boot Camp.

Business Competition

In 2022, the Path to Prosperity Business Competition received 23 applications from eight communities across Southeast Alaska. Twelve finalists were selected, and were brought together for the first in-person Business Boot Camp since 2019. At Boot Camp, finalists received more than 26 hours of training and technical assistance, connecting with one another and more than 14 mentors. In the words of one finalist, “I have thoroughly enjoyed every part of this. It was the perfect mix of interactive and sit down sessions, foundational value work with

Aaron Angerman, a Path to Prosperity Business Competition finalist, listens in a workshop during the 2022 Business bootcamp. Angerman’s proposal was for a business that would rent electric scooters in Wrangell.

practical skills, and sightseeing with networking. I loved it all, even the hard parts. One big thing on my mind is that there will always be uncomfortable moments in starting and running a business, but to lean into those and learn from them.”

Izzy Haywood Program Manager for Events and Facilitation

Photo by Connor Meyer

Photo by Connor Meyer Path to Prosperity Business Competition participants and mentors gather to celebrate the program.

Photo by Marc Wheeler Rebecca Kameika, left, of Costa Brava, Bakery & Pâtisserie and Alannah Johnson of New Earth Fungi after winning the 2022 Path to Prosperity Competition.

Photo by Connor Meyer

ABOVE: Caitlyn Way talks with Joseph Oesterling of SEAK Expeditions during the “speed dating” portion of the annual Path to Prosperity Business Competition Boot Camp. During the “speed dating” the finalists had an opportunity to ask questions and receive feedback from mentors.

LEFT: Michael Mausbach leads a session on leadership and team building during the Business Competition.

Photo by Tripp J Crouse

CDFI & Loan Program

In 2022, we deployed nearly $350,000 in loan capital to four Alaska small businesses marking a lift of 482 percent over the prior year.

Since our inception, we have disbursed $2.1 million in loan capital to entrepreneurs in nine communities. Spruce Root has redoubled our efforts to aid Southeast Alaska Native people to access patient capital not only implementing it’s “Fast Start Small Business Loan” program, but also through expanding its one-on-one business coaching and forging new partnerships and new sources of funding capital.

Thus far over $2 million in new lending capital has been committed to be available to Southeast Alaska resients in 2023.

Michael Ching CDFI Director

Photo provided by Wilderness Island Tours

Wilderness Island Tours, a Spruce Root loan recipient and Alaska Native-owned and -operated, provides three-hour driving tours in Hoonah, which include the possibility to see Chichagof Island wildlife, such as eagles or bears.

Photo provided by The Cozy Chilkat The Cozy Chilkat, a Spruce Root Fast Start loan recipient and Alaska Native-owned and -operated, is a cozy tiny home rental a few minutes away from downtown Haines.

Community Facilitation

We offer strategic planning services, community facilitation, facilitation support, and community planning to nonprofits, Tribes, and local governments.

In 2022, we wrapped up our project with the Sitka Tribe of Alaska to develop a five-year strategic plan and shifted to supporting the Tribe in implementing the plan. Also in 2022, the City and Borough of Yakutat began a process to update Yakutat’s comprehensive community plan, and Spruce Root is grateful to be leading the facilitation of the process in partnership with the Planning Commission. Ecotrust’s Alaska-based team and work has been expanding, and Spruce Root facilitated a two-day strategic planning workshop for their team.

In 2022, the City and Borough of Yakutat began a process to update its comprehensive community plan. Spruce Root is leading the facilitation of the process in partnership with the Planning Commission.

We are hopeful, through activities like these, that we are creating spaces for more effective community collaboration throughout the region.

Aaron Ferguson Spruce Root Deputy Director

Photo by Tripp J Crouse

Photo by Mel G Photography

Julia Hnilicka, center, the Alaska State Director of Rural Development for the U.S. Department of Agriculture talks with Spruce Root Executive Director Alana Peterson and Izzy Haywood, the Program Manager for Events and Facilitation during the Confluence AK Summit in Deishu (Haines) in 2022.

In 2022

108 hrs

The Sustainable Southeast Partnership spent 108 hours building relationships in online hangouts and in-person retreats.

Sustainable Southeast Partnership

In 2022, the Sustainable Southeast Partnership continued to grow throughout the region by increasing our presence in communities with our regional and community catalysts.

Our catalysts collaborated with partners from across the region to advance projects in areas ranging from habitat restoration, to food security, energy independence, and more.

As a program of Spruce Root, the SSP is doing our part to make sure that Southeast Alaska thrives for future generations by supporting community-led projects that lead to a regenerative economy.

LEFT: The previous Sustainable Southeast Partnership program director Ralph Wolfe leads a group of Alaska Youth Stewards during a canoe trip at Haa Tóo Yéi Yatee (Hoonah Culture Camp).

Marina Anderson SSP Program Director

Photo by Bethany S Goodrich

Photo by Shaelene Grace Moler Alaskan Youth Stewards plant Tlingit potatoes for the Kake, Alaska, community.

ABOVE: Sustainable Southeast Partnership regional catalysts visit the Sitka Sound Science Center’s touch tank and the various undersea creatures that live there as part of the 2022 SSP retreat.

LEFT: Alaskan Youth Stewards process kelp for pickling as part of Hoonah Culture Camp.

Photos by Kaa Yahaayí Shkalneegi Muriel Reid

Photo by Lione Clare

SSP served 12 communities across the region

The SSP paid more than $400,000 on catalyst salaries in the region.

Seacoast Trust

In 2022, the Seacoast Trust achieved our initial $20 million fundraising goal with thanks to Sealaska, The Nature Conservancy, Rasmuson Foundation, Hewlett Foundation, Edgerton Foundation, Chorus Foundation and Wilburforce Foundation for helping us reach this goal. Through this work, we hope to grow the fund to $100 million dollars — the next goal to amplify our impact.

Marina Anderson SSP Program Director

To help direct and manage the Trust investment portfolio, the Spruce Root Board of Directors appointed committee members who are Alaska Native with strong ties to Southeast Alaska.

Through this work, Spruce Root will be able to hire a development director to increase fundraising capacity to Spruce Root, but also manage the development of the Seacoast Trust.

“The Seacoast Trust is proof that we are in this together for the long haul. If our grandchildren aren’t here, caring for these lands and waters the way their grandparents did, then what are we doing here? The Seacoast Trust is shaping our future by embracing ancient wisdom and working together to tackle local problems and address systemic issues.”

Spruce Root Board of Directors, SSP Steering Commitee

Photo by Bethany S Goodrich Carvers and Hoonah community leaders dance and sing with youth during Hoonah’s Haa Tóo Yéi Yatee Culture Camp. Regional catalysts of the Sustainable Southeast Partnership, campers, carvers, and community members visited Xunaa Shuká Hít Huna’s Tribal House in Glacier Bay to open a week of cultural activities in 2022.

— Joe Nelson,

Pet supply store owner credits Spruce Root with support

A new pet supply store in Sitka features high-quality treats and toys for cats and dogs. For the owner, starting a business in her hometown didn’t seem possible at first. But through training and support coaching from Spruce Root, pet owners have a new place to buy treats for their pets.

Julia Bovee grew up in Sitka, Alaska. She moved back and forth between Washington state, before returning to her home town.

“I could never start a business anywhere else because I have all this support and love, and people know me here and want me to succeed,” Julia said.

In fall 2021, she participated in Path to Prosperity Business Basics, one of several workshop offerings of Spruce Root, a Native community development financial institution, that offers small business lending and technical assistance to current and prospective small business owners in Southeast Alaska.

“I remember just thinking I was going to do a gift store,” she said. “By the end of that (Business Basics) session, I realized ‘Oh I really need to do some kind of pet supply store,’ and working with the coaches ... really helped me not only think about what I wanted to do but what might be successful and marketable in Sitka.”

Julia modeled the store off her favorite specialty pet supply stores in Seattle.

“I knew that I wanted really high-quality treats, toys and supplies for dogs and cats. The goal is to just get the best products out there.”

Julia wanted to focus on local customers year-round and carry things they would want, but also didn’t want to miss out on the opportunity to capture tourist or visitor sales, like carrying Alaskan-made salmon treats or bandanas: “Lots of

fun accessories and gifts that are a little bit more unique and not mass-produced things that might be in other tourist stores.”

Julia says Spruce Root’s lending services helped her figure out the financial piece.

“I wasn’t going to be eligible for any sort of traditional bank loan, so just being able to access funding through Spruce Root along with that coaching piece – I don’t think I’d be here without it,” she said. “I am super thankful for all the help Spruce Root gave me along the way and I think this model of the business coaching and the help with the business plan up front all the way through ideation and financing and all that, worked super well for me.”

spruceroot.org

Photo provided by Julia Bovee Kanga Bay is a pet store in Sitka, Alska, that carries high-quality treats, toys and supplies for cats and dogs.

Tripp J Crouse Spruce Root Communications Specialist

For the year ended December 31, 2022

For the year ended December 31, 2022

2022 Income Statement

Inc. Trust, LLC Entries

See independent auditor's report on consolidating information. - 22 -

See independent auditor's report on consolidating information. - 22 -

December 31, 2022

Statement of Financial Position

See independent auditor's report on consolidating information.

Photo by Shaelene Grace Moler

Our Board:

Meet Our Team and Board of Directors

Leslie Isaacs, Chairman of the Board

Gunnuk’ Anthony Mallott, Board Member

La quen náay Liz Medicine Crow, Board Member

Kaaxúxgu Joe Nelson, Board Member Chris Perez, Board Member

Aanshawatk’i Sarah Dybdahl, Board Member Norman Cohen, Board Member

From back, left to right, Tripp J Crouse, Aaron Ferguson, third row: Ashley Snookes, Aldyn Brudie, Laurel Stark, Marina Anderson, Abbey Janes; second row: Marc Wheeler, Elle Weberling, Alana Peterson, Leslie Jackson, Autumn Shotridge, Izzy Haywood; front row: Michael Ching, Ralph Wolfe, Michael Mausbach.

Our Partners and Funders

We take pride in our work and are grateful to work in and serve the region to build collaborative and sustainable solutions to economic development. Alone, we will not succeed. Thank you to our partners and funders for continuing to support our mission!

Gunalchéesh, Hàw’aa, Nt’oyaxsn, Thank You!

AEL&P

Alaska Brewing

Alaska Litho

Alaska Community Foundation

Alaska Conservation Foundation

Alaska Department of Commerce, Community & Economic Development

Alaska Outdoor Alliance

Alaska Venture Fund

Allen Marine

Alaska Native Heritage Center

Avista Foundation

CDFI Fund

Central Council of the Tlingit & Haida

Indian Tribes of Alaska

Chorus Foundation

City and Borough of Yakutat

Coeur Alaska Kensington Mine

Credit Builder’s Alliance

Ecotrust

Edgerton Foundation

Elgee Rehfeld

Evergreen Business Capital Foundation

Farragut Farm

First Alaskans Institute

Hewlett Foundation

Hoonah Indian Association

JumpScale

Klawock Cooperative Association

Launch Alaska

M. J. Murdock Charitable Trust

Margaret A. Cargill Philanthropies

McKinley Research Group

McKinley Alaska Growth Capital

Native American Agriculture Fund

Native Conservancy

The Nature Conservancy

NDN Collective

Opportunity Finance Network

Oweesta Corporation

Rasmuson Foundation

Rain Coast Data

Rural LISC

Sealaska

Sealaska Heritage Institute

Simpson, Tillinghast, Sheehan & Araujo, P.C.

Sitka Conservation Society

Sitka Homeless Coalition

Sitka Tribe of Alaska

Southeast Conference

Sustainable Southeast Partnership

Tongass Federal Credit Union

Tyree Charitable Trust

United States Department of Agriculture

United States Economic Development Administration

United States Forest Service

University of Alaska Center for Economic Development

Wilburforce Foundation

W. K. Kellogg Foundation

Wells Fargo Foundation

Wostman Associates

Wrangell Coopertive Association