First Nations project developers can potentially tap into new support to secure financing for revenue-generating infrastructure within their territories in British Columbia. The B.C. government is now offering loan guarantees ranging from $5 million to $400 million for qualifying borrowers investing in an ownership stake of a project that involves new capital construction or substantial expansion of existing capital assets.
The newly launched First Nations Equity Financing Program (FNEFP) has been seeded with $1 billion to backstop financing obtained from institutional lenders. The program is open to First Nations or their associated incorporated entities if they are shopping in the loans market with the intent of purchasing an equity share in a venture with at least $25 million in capital costs. As well, they must have verified financial projections to demonstrate that loans can be repaid from their projects’ revenue stream.
The FNEFP will provide loan guarantees equivalent to up to 20 per cent of the project’s total capital costs. This will be allocated through two project streams: small and medium-sized projects valued at $25 to $125 million; and large undertakings in excess of $125 million. Projects across a range of economic sectors — including natural resources, energy, tourism, agriculture and aquaculture — are eligible, provided proponents can credibly show that the ventures will be commercially viable, foster new economic growth, create jobs and attract spinoff investment.
Potential qualifying projects include:
- renewable energy generation and transmission lines;
- mining, liquified natural gas (LNG) and forest product manufacturing facilities;
- toll roads, ports, terminals and rail infrastructure; and
- infrastructure to support commercial activity, such as industrial parks and utilities.
The B.C. government has committed the start-up pot for the first three years, but administrators foresee the program will become self-sustaining once a critical mass of enrollees is paying fees on their executed loan guarantees. Approved proponents will be required to pay an upfront fee, to be calculated as a designated percentage of initial loan principal, when the guarantee is issued. Annual fees for monitoring and administration will subsequently be calculated as a percentage of loan’s remaining balance.
An online information session about the new loan guarantee fund is set for July 15, 2026.
