Key Principles
Indigenous governance
We operate with a diverse board of directors and executive team with robust Indigenous representation.
Geographic diversity
We are committed to supporting Indigenous groups across the country, ensuring fair access to the program for groups from coast to coast to coast.
Efficiency and timeliness
We aim to work at the speed of business, ensuring the Indigenous Loan Guarantee Program aligns with the timelines of Indigenous groups, project developers and lenders.
Early engagement
We are able to connect with potential applicants to the program early in the process. By getting involved before applications are submitted, we can provide guidance on financing and risk and set projects up for success.
Robust due diligence
We carefully assess each application and work with applicants to identify any risks or gaps. If more information is needed, we will guide applicants on next steps.
Program stacking
Where possible, we work to align our program with provincial loan guarantee programs, allowing Indigenous groups to combine support for larger, more impactful opportunities.
Eligibility
The Indigenous Loan Guarantee Program (ILGP) is designed to support the acquisition of equity stakes in major projects. It is open to Indigenous groups with recognized Section 35 rights. The program supports a range of projects across the country. Our goal is to ensure that Indigenous Peoples, regardless of their location, can benefit from this opportunity to advance economic reconciliation and self-determination.
The Canada Indigenous Loan Guarantee Corporation will consider applications that meet the following criteria:
- Applicants: Only Indigenous groups, or their wholly owned subsidiaries, are eligible to apply. Applications must include a clear statement of support from the group’s leadership, such as a band council resolution or other formal decision document used by Métis, Inuit, or self-governing Indigenous groups.
- Section 35 Rights: Applicants must have credibly asserted or affirmed rights under section 35 of the Constitution Act, 1982. Screening is exclusively for the purpose of determining loan guarantee eligibility and is not intended to be a rights-determination process.
- Geographic Relevance: Applicants must have credibly asserted or affirmed section 35 rights in the project area, or the project must impact section 35 rights of the applicant. In cases where the applicant is a consortium of section 35 rights holders, a minimum of 25 per cent of the value of the investment must be contributed by Indigenous groups that meet this geographic impact criterion.
- Major Projects: Investments must be in a major project, defined as a large-scale or capital-intensive initiative that involves the development, construction, or acquisition of significant in situ physical or assets and derives its revenue and cash flow primarily from the operation, leasing, or commercial use of those assets over time. Projects in the gaming and casino sector are not eligible.
- Guarantee Thresholds: Generally, applicants must be seeking a minimum guaranteed amount of $20 million to a maximum amount of $1 billion.
- Financial Separation of Investments: Applicants must confirm that investments will be made into financially ring-fenced assets or operations, which will be subject to confirmatory diligence. In some cases, there may be a requirement to restructure the assets or operations into separate legal entities to facilitate independent financial reporting and cash flow management.
In addition, the Canada Indigenous Loan Guarantee Corporation will prioritize applications based on the following considerations:
- Investment-Ready: Priority will be given to investment opportunities that are well-advanced and positioned to proceed without delay. Applicants should demonstrate that substantial diligence, transaction negotiation and structuring work has been completed, reflecting overall readiness for investment.
- Demonstrated Cash Flow: Investments should be structured to generate stable cash flow, sufficient to repay the acquisition financing. Projects should be able to demonstrate predictable and stable cash flow which may be achieved through instruments such as power purchase agreements, delivery contracts, and offtake agreements, where applicable.
- Projects of National Interest: Nation-building projects referred to the Major Projects Office will be prioritized by the Canada Indigenous Loan Guarantee Corporation, where appropriate.
Application Process
Applying for the Indigenous Loan Guarantee Program (ILGP) involves a thorough assessment of your project’s commercial and financial viability. Applications are reviewed by the Canada Indigenous Loan Guarantee Corporation (CILGC), which will conduct due diligence to ensure each project meets the program’s standards. Applicants are encouraged to contact our team early in the process to discuss their project and receive guidance on preparing a strong application.
2
Application
Contact us to discuss your investment opportunity. Fill out and submit your Application Form.
3
Eligibility & Prioritization Screening
Your application will be reviewed, and your eligibility will be assessed. A decision will be made on whether to move to full due diligence.
4
Due Diligence
Detailed analysis of all due diligence areas such as commercial, financial, operational, and integrity.
5
Negotiation & Decision
A term sheet will be negotiated, and a final decision will be made.
6
Transaction Close
Definitive documents will be settled and signed. Financing will be completed and the guarantee issued.
7
Monitoring
The Canada Indigenous Loan Guarantee Corporation will manage the loan guarantee, making sure all key financial and commercial terms are followed.
We will keep applicants informed about the status of their applications throughout the process.