Network Calls for Broader, More Inclusive Indigenous Loan Guarantee Program

August 26, 2025

The Indigenous Resource Network (IRN) urges Ottawa to expand and improve the federal Indigenous loan guarantee program, especially amid efforts to accelerate national projects across Canada.

While praising the program’s potential, IRN advocates for refinements to enhance accessibility for all resource sectors and project types. Recognizing longstanding barriers and gaps in capacity within Indigenous communities, IRN follows the advice of an RBC report from April 2025 and recommends allocating 3-5% of loan guarantee funds towards capacity building. This investment would empower Indigenous partners to manage negotiations and oversee large-scale projects more effectively, addressing findings from recent RBC research showing nearly 85% of projects could stall without increased capacity across finance, engineering, and legal domains. Right now, capacity support is separate and often discretionary.

The IRN also suggests revising project eligibility thresholds based on sector-specific investment scales. Research by the Forest Products Association of Canada (FPAC) demonstrates that current high thresholds exclude critical sectors like forestry. FPAC’s data shows energy and mining projects require larger capital, while lower thresholds for forestry and clean energy can support smaller, sustainable ventures.

“We are more than pleased with the creation and deployment of this program, but like any new program, it could use improvements to ensure it is its most inclusive and applicable to any Indigenous interest that would benefit from access to affordable capital,” said IRN Executive Director John Desjarlais.

While successful from many perspectives, other loan guarantee programs have restrictive thresholds that have prevented forestry projects since 2019, and we encourage equitable and sector-agnostic funding access across all Indigenous resource sectors. This approach will foster diverse, impactful projects that promote economic growth, sustainability, and reconciliation, especially in light of changing trade dynamics with the U.S.

IRN urges the government to prioritize improvements to the Indigenous loan guarantee program and other capital avenues to ensure Indigenous partners can reliably participate in key national projects, especially amid new tariffs and trade challenges.

NT5