To build a school, Colville Lake turns to First Nations lender

The Behdzi Ahda First Nation in Colville Lake, N.W.T., has become the first in the North to get certified by the First Nations Financial Management Board, an Indigenous-run non-profit group that helps communities get access to reasonably-priced loans.

Once a community proves it's financially stable, the doors are open to loans that can be used to build infrastructure or get involved in development in their backyards.

In this case, Behdzi Ahda Chief Wilbert Kochon says the community wants to build a new school, and he wants to keep the loans as a backup.

"The only reason why we set it up is if we run into problems we'd be able to access that funding if we have to," he says.

"Right now we're working on a process for the school with the government, and if certain things don't work out we're going to have to go that way."

Because of its certification, the community could build the school outright then rent it back to the territorial government.

Harold Calla, executive chair of the First Nations Financial Management Board, says doing what Colville Lake has done — having the money available before it's needed — isn't such a bad idea.

"We always like to remind people that whether you're borrowing today or not, you need to prepare yourself as a government to be in a position where if you need to access capital or equity for economic development that you're not starting at square one."

A gatekeeper to big loans

The First Nations Financial Management Board acts as the gatekeeper to big loans, which are actually distributed by a related organization, the First Nations Finance Authority. Membership in both organizations is voluntary. The two were created together by the 2006 First Nations Fiscal Management Act.

The FNFMB supports First Nations in drawing up their own laws around financial management, even providing financial assistance up to $50,000.

Once the community has those laws in place, it can access loans straight from Wall Street as part of a lending pool. That pool is entirely directed by its First Nation members.

The FNFMB estimates that it's two- to three-times more expensive to finance infrastructure on First Nations lands.

Calla says several other First Nations across the North are exploring the possibility of getting certified for loans of their own.

"Most of the major resource development in this country is going to take place in the North," says Calla.

"There is about $800 billion worth of development that's contemplated. Through negotiations, these communities have the opportunity to kickstart their own regional economies with substantive economic benefit flowing from these projects."