Quick Signal
Quick Signal
Canada's Indigenous Loan Guarantee Program has doubled to $10 billion and expanded to cover infrastructure, transportation, and trade — not just energy. Two transactions have already closed. But a major new analysis published this week reveals that most Nations are not positioned to access the program, and the reason is structural, not financial.
The Indigenous Loan Guarantee Program (ILGP), managed by the Canada Indigenous Loan Guarantee Corporation (CILGC), provides federal loan guarantees to help Indigenous groups acquire equity positions in major projects. Guarantees range from $20 million to $1 billion per transaction. The program was initially launched in December 2024 at $5 billion, then doubled to $10 billion in March 2025.
Two transactions have now closed under the program. The first supported a group of First Nations in acquiring a 12.5% ownership interest in Enbridge's Westcoast natural gas pipeline system. The second, announced in March 2026, supported Aamjiwnaang First Nation and Kettle & Stony Point First Nation in acquiring a nearly 20% equity stake in a Hydro One electricity transmission line in Ontario.
On top of the federal program, provincial programs in Alberta, Ontario, Saskatchewan, Manitoba and British Columbia add another $7 billion in combined loan guarantee authority. BC's First Nations Equity Financing Program is launching in spring 2026. Total combined authority across Canada now exceeds $17 billion.
A new RBC report published this week identifies a problem that matters for most Nations considering this path: the program activates at financial close — the moment a deal is ready to execute. But the work required to get a Nation to that point starts much earlier, often years before, and is rarely funded.
The report identifies what it calls a "first-mile problem." To reach financial close, a Nation needs to:
None of this is funded by the ILGP. The guarantee only activates when all of that work is complete. Nations that haven't done this preparation — or don't have advisors helping them do it — will watch these opportunities pass.
The RBC report notes that over 80% of Indigenous equity transactions to date have been in the power and utilities sector, and most have been in Western Canada where communities have existing frameworks, established relationships with industry, and prior transaction experience. Northern and eastern communities — where many critical minerals projects are located — are largely on the sidelines.
The Major Projects Office currently has 17 projects worth $126 billion under accelerated review. The majority of these projects are on or adjacent to Indigenous territories. The window to position for equity participation in these projects is now — not when shovels are in the ground.
The Opportunity
For Nations considering the Indigenous Loan Guarantee Program, the preparation work — governance readiness, understanding what equity ownership requires, building the advisory relationships needed to evaluate deals — tends to be most useful when it begins before a specific project is on the table. The program is active and capital is moving. Tuvvik is available to help Nations think through what preparation makes sense for their situation, without any assumption about what the right path forward looks like for any particular community.
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Sources: Canada Indigenous Loan Guarantee Corporation (CILGC), Department of Finance Canada, RBC Thought Leadership — "Nations Building: Assessing Indigenous Loan Guarantee Programs in Canada's New Project Wave" (April 30, 2026), Major Projects Office — Canada.ca, Natural Resources Canada.