First Nations Bank of Canada (FNBC) has greenlighted $140 million in loan deals with the Canadian Infrastructure Bank (CIB) to improve infrastructure in Indigenous communities, bringing in the capital necessary to revive projects that have been sidelined for years over funding challenges, according to FNBC’s chief executive.
The Indigenous Land Development Loan Program, a partnership between the two banks unveiled last year, is the driving catalyst to complete the projects. The program offers complete financing for building projects, housing, land and urban reserve development.
Even beyond Wednesday’s announcement, there are more loan opportunities available than the Indigenous-owned bank can fund, so it is working on bringing on more Indigenous investors, FNBC’s CEO Bill Lomax said in an interview. “The bank is very much in expansion mode right now,” he added. Lomax wants to double the bank’s loan and trust business over the next five years, which currently has just under $5 billion in trust assets.
Talking Points
- The Indigenous-owned bank has tapped a crown bank to unlock $140 million in funding for new projects that have been stalled
- It could cause a “multiplier effect” on funding opportunities, FNBC’s CEO says
For every $3 of funds that Indigenous-owned bank FNBC is offering, Crown corporation CIB will match it with $1 of financing. “You do get that multiplier effect,” Lomax said. So far, the partnership has led to the approval of $140 million from FNBC, including $30 million in CIB loans across five Indigenous communities in British Columbia, Saskatchewan and Yukon.
The financing deal comes nearly a year after CIB committed to providing $100 million in loans for FNBC—the Indigenous-owned bank pledging to run the portfolios and match funds. In November 2023, CIB said it would invest almost $1 billion in Indigenous infrastructure.
A brewing trade war could heighten the need for this type of infrastructure in Canada, Lomax said. “If we end up in a long-term battle with our neighbors to the south, Indigenous communities are going to be part of helping make sure that our economy gets back on track.”
“There’s a lot of bluster,” the ex-Wall Street banker said. “[Trump] is gunning for something. He wants some kind of a big win.”
If the relationship between Canada and the U.S. turns hostile, demand for national infrastructure from east to west could also rise—whether it’s by rail, pipelines or something else, Lomax said. And, a “bigger push” toward new markets like Europe or Asia will involve First Nations too.
The bank’s loan book wouldn’t be affected too heavily by tariffs from the U.S., Lomax said, while acknowledging that several projects would nonetheless be exposed to “major stress.” He’s also noticed hesitancy around investing in projects until more clarity emerges. If the economy is hurt, it has effects on everyone, he added.
Though there’s “always more that can be done” by the government, there is interest from all parties to be involved—no matter the outcome of a potential federal election, Lomax said.
