The First Nations Finance Authority (FNFA) is a non-profit organization operating under the authority of the First Nations Fiscal Management Act, 2005. Ernie Daniels, CEO
Westbank, British Columbia
Innovative funding regime for First Nations communities
BUSINESS COUNCIL OF CANADA
About the Innovation
The First Nations Finance Authority (FNFA) developed an innovative funding regime that cuts borrowing costs and provides interest rate certainty for First Nations communities. FNFA developed partnerships with the National Bank of Canada and financial markets, and promoted new voluntary standards for internal fiscal management in First Nations communities. This unorthodox approach to loans involves leading-edge financial techniques that calculate individual First Nations’ borrowing capacities based on existing revenue-generating activities. In this way, First Nations are empowered to develop long-term community plans, and to better manage their own economic development.
About the Innovator
The FNFA provides First Nations governments with the financial instruments to build their futures on their own terms. Its mandate, set out in the First Nations Fiscal Management Act and related regulations, is to offer financing, investment and advisory services. Financing services of the FNFA allow each borrowing members access to low-rate and long-term loans on their own planning schedule. Investment services provide First Nation governments with secure, affordable, short-term cash management instruments designed to assist their capital planning and financing. Advisory services are designed to educate First Nation governments and staff on how to best use long-term financing to protect or improve their budgets.