What is the First Nations Finance Authority (FNFA)?
The First Nations Finance Authority (FNFA) is a statutory not-for-profit organization. It operates under the authority of The First Nations Fiscal Management Act. The FNFA’s purposes are to provide First Nations with investment options, capital planning advice, and access to long-term loans with preferable interest rates. The FNFA is not an agent of the Crown. It is governed by the First Nations communities that join as Borrowing Members.
How does the FNFA lend money to First Nations?
The FNFA receives the borrowing requests from First Nations that have sent in applications to become Borrowing Members.
Are there limits to the amount of money a First Nation can borrow?
No. The amount of money a First Nation can borrow is only limited by the amount of stable, secure, ongoing revenue the Nation has to repay the loan.
What happens if a First Nation defaults on a loan?
The FNFA protects both First Nations and the bondholders against loan repayment default.
The FMB also has the authority to step in to provide support. Intervention is a support process that enables the FMB to investigate, understand, manage, and resolve any problems relating to:
- non-compliance with taxation laws
- risk or actual default of debt service payment(s) to FNFA.