Aboriginal Financial Institutions
Aboriginal Financial Institutions (AFIs) are autonomous, Aboriginal-controlled, community-based financial organizations. AFIs provide developmental lending and business financing and support services to First Nations, Métis, and Inuit businesses and communities in all provinces and territories. Support includes business loans, non-repayable contributions, financial and management consulting, and business start-up and aftercare services.
The AFI network plays a critical role in filling the financing gaps and unmet needs faced by Aboriginal entrepreneurs. AFIs make loans that conventional financial institutions cannot by identifying risks and then mitigating those risks by helping Aboriginal entrepreneurs avoid them. AFIs have become experts in risk assessment, mitigation, and management for Aboriginal entrepreneurs and communities. Although AFIs take on more risk than conventional commercial lenders, the average repayment efficiency rate was approximately 95% at the end of fiscal 2015-2016.
Within the continuum of lenders that provide loans to Aboriginal entrepreneurs and businesses, AFIs are connected with their communities at the grassroots level. The AFI network is highly focused and dedicated to meeting the developmental lending needs of Aboriginal businesses and communities across the country.