Unlocking Economic Sovereignty: Analyzing the Expansion of the Indigenous Loan Guarantee Program

April 17, 2025

In March 2025, the federal government doubled its commitment to Indigenous economic participation by expanding the Canada Indigenous Loan Guarantee Program (ILGP) from $5 billion to $10 billion in available guarantees. This significant increase marks a pivotal moment in Canada’s approach to economic reconciliation, offering Indigenous Nations broader access to capital—and a more powerful role in shaping the projects that impact their lands and futures.

What’s New in the ILGP?

The ILGP was initially launched in December 2024 to help Indigenous communities overcome systemic barriers to financing and fully participate in large-scale resource and infrastructure projects. But these March 2025 updates signal a strategic shift in both scale and scope:

  • Increased Funding: The program’s federal loan guarantee capacity has grown from $5 billion to $10 billion, effectively doubling the amount of capital Indigenous Nations can leverage to invest in equity stakes.
  • Expanded Project Eligibility: Previously focused primarily on natural resource development, the ILGP now includes projects in infrastructure, transportation, and trade, creating new avenues for Indigenous-led economic growth in diverse sectors.

These updates not only make the program more accessible—they also deepen its impact, supporting long-term, community-driven prosperity in areas that go beyond extractive industries.

Why These Changes Matter

For many Indigenous communities, access to affordable capital has long been a barrier to self-determination. The ILGP’s enhanced capacity and broader mandate offer a meaningful opportunity to:

  • Lead and co-govern major projects
  • Build sustainable, own-source revenue streams
  • Create jobs and long-term capacity within communities
  • Forge equitable partnerships with industry

By shifting risk away from lenders and opening doors to new types of projects, the updated ILGP is a direct response to the call for tools that empower Indigenous Nations to shape their economic futures on their terms.

Navigating the Opportunity with Niipaawi Strategies

Niipaawi Strategies—a proudly Indigenous-owned public affairs and strategic advisory firm—has been closely tracking these developments. With deep experience in government relations, economic development, and navigating federal programs, Niipaawi is well-positioned to help communities leverage the ILGP to meet their Nation’s goals.

Whether you're advancing a clean energy project, negotiating with industry, or advocating in Ottawa, Niipaawi provides the insight and relationships needed to turn opportunity into long-term success.