Overview of the Aboriginal Loan Guarantee Program (ALGP)


  • The $650 million Aboriginal Loan Guarantee Program supports Aboriginal participation in renewable green energy infrastructure in Ontario including transmission projects and wind, solar and hydroelectric generation projects.
  • The program was announced in the 2009 Ontario budget and provides a Provincial guarantee for a loan to an Aboriginal corporation to purchase up to 75 per cent of an Aboriginal corporation's equity in an eligible project, to a maximum of $50 million.
  • The program is available to corporations that are wholly-owned by Aboriginal communities.
  • By participating in eligible renewable energy projects, First Nation and Métis communities can benefit from jobs and training as projects are developed and from dividends once projects come into service.
  • Loan guarantees are provided under the program no earlier than at the point of financial close for the project, after regulatory approvals are in place and at the same time, or after, all other financing is put in place.
  • The Ontario Financing Authority (OFA) administers the program on behalf of the Province.
  • The ALGP requires a sufficient level of due diligence in order to satisfy eligibility criteria and to draft the required underlying legal agreements. The applicant is required to obtain financial and legal advice, and may incur costs passed on from the lender. The OFA and the Province will not be responsible for any costs and/or expenses incurred by the applicant related to the ALGP application and review process, and the applicant will not be able to recover any such costs or expenses from the ALGP. As the scale of these costs is similar, regardless of the size of the application, a small application may not be cost-efficient. The ALGP is better suited for applications greater than $5 million.
  • The Aboriginal Loan Guarantee Program is a discretionary, non-entitlement program. Any decision to provide a loan guarantee will be at the sole and absolute option of the Province. This means that even if an application meets the program objectives and criteria, the Province is under no obligation to provide a guarantee. Assistance in the form of loan guarantees is limited.