Where: Northway Village, Alaska

Issue: A remote Alaskan Native community needed gap financing to complete a multi-purpose building to serve its members

Outcome: RCAC’s Loan Fund provided a $130,000 bridge loan to cover unanticipated costs

Northway Village is a remote Alaskan Native community about 45 miles from the Canadian border. The Village has less than 100 residents and an $18,750 Median Household Income.

The Northway Village Council (NVC) received $825,000 in grants to construct a new, 2,700 square foot multi-purpose community building; however problems with the foundation and an easement increased project costs beyond available funding. With the project 90 percent complete, NVC needed to access additional funds quickly. After trying unsuccessfully to obtain additional grant funds, and without options for traditional financing, NVC turned to RCAC’s Loan Fund for assistance.

The Loan Fund issued a short-term $130,000 bridge loan to cover the remainder of the construction costs and enable NVC to complete this vital community project. The Loan Fund also approved NVC to use settlement funds from a class action suit against the Bureau of Indian Affairs as the repayment source for the loan.

When complete, the multi-purpose community facility will be the site for Tribal Youth Family Services, Indian Child Welfare Program, Tribal Workforce Development, BIA Social Services and Higher Education, Elders Nutrition Program, Youth/Elder Multi-Purpose Activities and Community Health Services.