The FNFA has the authority to raise capital to finance community and economic infrastructure to deliver local services and promote the social and economic development of First Nation communities. The Eligible Projects that can be supported by either Other Revenues or Property Tax revenues can be found by clicking here. (see the full list of Eligible Projects here)
FNFA’s lending mandates are to supply both short-term and long-term loans for its borrowing members. Short-term loans provide flexibility in that the rates are very low, and only require interest payments during the construction stages of the project. Once construction is complete, the Borrowing Member will substitute the short-term loan for a long-term loan that suits their budget (loan terms up to 30 years available). Interest rates on long-term loans may be locked-in for the full term if desired to provide budget certainty.
The FNFA can also refinance existing debt for projects that meet the eligibility criteria. FNFA’s access to low and fixed interest rates and its flexibility in setting repayment terms can result in a significant decrease in the annual debt-service payments, thus enabling a First Nation to redirect these savings toward new developments without increasing its debt load.