First Nations are turning away from private lenders. Here’s why – The Star
January 23, 2024
First Nations are using loan funding to build necessary infrastructure within their communities and close a huge infrastructure gap.
OTTAWA—First Nations are turning away from private lenders in favour of First Nations-led organizations that offer better rates for the financing of much-needed community infrastructure and commercial projects.
Since 2014, the First Nations Finance Authority has provided $2 billion in loans to almost 170 First Nations, which it says has created nearly 20,000 jobs. The authority recently surpassed this milestone with their latest debenture consisting of 25 First Nations and $356 million in loans, money that will help build on-reserve housing, a new grocery store project and a wastewater treatment plant upgrade.
This comes as the Bank of Canada’s interest rates have continued to climb in recent months and another announcement on the rate is expected Wednesday.
The First Nations-led institution offers lending rates at nearly three per cent below bank prime rates and has a credit rating that is better than the Government of Ontario.
