Canada Indigenous Loan Guarantee Corporation

Overview

The Indigenous Loan Guarantee Program was launched in December 2024 with the creation of the Canada Indigenous Loan Guarantee Corporation (CILGC), a wholly-owned subsidiary of CDEV.

Initially launched with $5 billion in loan guarantee authority focused on the energy and natural resources sectors, the Government of Canada doubled the Indigenous Loan Guarantee Program to $10 billion and extended its scope to major projects across all sectors of the economy, with the exception of gaming, in March 2025.

CILGC’s role includes engaging with eligible applicants, conducting due diligence, negotiating agreements, and issuing loan guarantees that empower Indigenous groups to take part in economic opportunities. CILGC is actively being supported by CDEV staff and its executive team in this work. The inaugural Chair of the CILGC, Michael Bonshor, was appointed in March 2025.

In May 2025, CILGC announced the provision of its first Indigenous loan guarantee for $400 million to a partnership of 36 First Nations in British Columbia to support the investment in a 12.5% ownership interest in Enbridge’s Westcoast natural gas pipeline system.

Context

Due to the Indian Act and the legacy of colonialism, there are significant challenges in securing capital and leveraging assets. These financial barriers limit Indigenous participation in projects that could generate long-term economic benefits. The goal is to ensure that Indigenous Peoples can benefit from this opportunity to advance economic reconciliation and self-determination.

What is an Indigenous Loan Guarantee?

Loan guarantees work by providing a guarantee that the debt will be repaid by the guarantor (the federal government) should the borrower (Indigenous groups) be unable to repay. Loan guarantees will enable Indigenous groups to overcome historic barriers and to become meaningful equity partners and owners of major projects across all sectors of the economy with the exception of gaming.

The Indigenous Loan Guarantee Program facilitates access to affordable capital to Indigenous groups. Loans are provided by financial institutions or other lenders and guaranteed by the Government of Canada. This means that the borrower benefits from the government’s AAA credit ratings, delivering a lower interest rate than is available to most borrowers.

Contact

For more information on the Indigenous Loan Guarantee Program, including the application process and eligibility requirements, please visit www.cilgc-cgpac.ca.