The Indigenous Loan Guarantee Program Just Got Bigger. Here's How First Nations Can Use It to Own Major Projects.

Two First Nations in Ontario now hold a nearly 20 per cent equity stake in Hydro One's Chatham to Lakeshore transmission line. Thirty-eight First Nations in British Columbia hold a 12.5 per cent stake in Enbridge's Westcoast pipeline system. Both transactions were made possible by the Canada Indigenous Loan Guarantee Corporation (CILGC) — and both signal a fundamental shift in how Indigenous Nations can participate in Canada's infrastructure economy.

The Problem: Capital Access Has Been the Barrier

For decades, Indigenous Nations have been excluded from equity ownership in major projects not because of lack of interest or capacity, but because of lack of access to capital. Commercial lenders have historically been unwilling to extend credit to First Nations governments on terms that make equity participation viable. The result has been a pattern of consultation without ownership — Nations affected by major projects but not benefiting from them.

What the Expanded Program Offers in 2026

The Spring Economic Update 2026 confirmed significant enhancements to the Indigenous Loan Guarantee Program:

• Program size doubled from $5 billion to $10 billion

• Eligibility expanded beyond energy and natural resources to all major project sectors

• New support for greenfield (new build) projects — not just acquisitions of existing assets

• Loan guarantees available for Indigenous-led project debt financing

What First Nations Leadership Needs to Do Now

Accessing the CILGC is not a passive process. Nations that have successfully used the program have done so because they arrived with clear project identification, governance structures capable of managing equity ownership, and the advisory capacity to negotiate complex transactions. The program provides the capital access — but the organizational readiness must come from within.

• Identify major projects in your territory or region where equity participation is viable

• Assess your Nation's governance and financial management capacity to hold and manage equity

• Engage legal and financial advisors with experience in Indigenous equity transactions

• Contact CILGC early — the program is active and processing applications on a rolling basis

• Develop a community engagement and benefit-sharing framework before finalizing any transaction

Conclusion

The expanded Indigenous Loan Guarantee Program is the most significant capital access tool available to First Nations for major project ownership. The transactions already completed demonstrate that the model works. The question for leadership is whether your Nation is positioned to use it.

XNM Consulting supports Indigenous Nations with governance development, strategic advisory, and executive decision support for major project participation. Contact us to discuss how we can help your Nation assess and pursue equity ownership opportunities.