Now Open: British Columbia’s $1 Billion First Nations Equity Financing Program

On June 16, 2026, British Columbia (the “Province”) made its much anticipated announcement that it is now accepting applications for its First Nations Equity Financing Program (the “Program”). Under the Program, the Province will provide loan guarantees to First Nations to support the acquisition of equity ownership in revenue-generating projects carried out within their traditional territories.

The Program will accept applications on a rolling basis until the available loan guarantee room is fully allocated.

The Program implements the Province’s First Nations Equity Financing Framework, announced as part of the 2024 provincial budget in furtherance of a new fiscal relationship with First Nations. Situated within the Province’s Look West strategy, the Program signals a deliberate effort to position First Nations as equity partners in the economic development of their territories, while driving investment and job creation across the province.

Program Overview

By backstopping commercial lending with provincial loan guarantees, the Program is designed to materially reduce borrowing costs and unlock access to capital on terms that reflect the creditworthiness of the underlying project — rather than the lending constraints that have historically limited First Nations’ ability to participate as equity partners in major developments on their traditional territories.

The Province has announced that it will provide up to $1 billion of total loan guarantees through the Program. A portion of the total, the specific amount of which has not been publicly disclosed, is reserved for small- and medium-sized projects (those with a total capital cost of $25 million to $125 million) to diversify investments and ensure benefits extend beyond large-scale developments. Individual guarantee amounts range between $5 million and $400 million. The loan guarantee covers up to 20% of the project’s total capital cost and must be used to support the applicant’s acquisition of an equity ownership interest in an eligible project.

The Province will support the Program’s operations for its first three years, after which the Program is expected to become self-sustaining through fees charged to approved applicants. Applicants approved for a loan guarantee will pay an initial fee, calculated as a percentage of the loan principal at the time the guarantee is issued. This fee may also reflect any financial assistance provided by the Province during the due diligence stage of the application process. Additionally, applicants will be responsible for an ongoing annual fee for monitoring and administration, based on a percentage of the loan’s remaining balance each year.

Eligibility Requirements

To be eligible for the Program, an applicant must be:

• a British Columbia-based Indigenous Governing Body, such as a Band Council or Modern Treaty Nation;
• a First Nations Development Corporation, with proof of support from the relevant Indigenous Governing Body; or
• another type of incorporated entity owned and controlled by an Indigenous Governing Body, with proof of support from the relevant Indigenous Governing Body.

A consortium of First Nations is also eligible to apply provided that the respective project is located within the territory of at least one participating Nation.

Applicants are required to provide a letter or resolution of support from the entity’s leadership in support of the project and the Program application. Applicants must also demonstrate their ability to meet debt repayment obligations and secure the capital financing needed to participate in the project, and show that they have begun seeking financing.

The Program offers support for eligible projects across a variety of sectors, including natural resources, energy, tourism, agriculture, and aquaculture. Projects in certain sectors and categories are ineligible, including housing, gaming, forest tenures, and natural resource exploration. Pre-construction development costs leading up to a final investment decision are the responsibility of project proponents and investors.

To be eligible for the Program, the project an applicant seeks equity ownership in must:

• have a minimum total capital cost of $25 million, excluding operating or other indirectly related costs;
• be located in the applicant’s traditional territory;
• involve new capital construction or substantial capital expansion of existing assets;
• demonstrate strong projected financial performance and sufficient financial returns to be commercially viable;
• contribute to new economic growth, investment attraction, revenue, and employment for First Nations, the private sector and the Province; and
• operate through a separate legal entity from existing assets.

Application Process

The application process will follow three stages:

1. Pre-screen intake: applicants will complete a pre-screen intake form to provide preliminary project information and a self-assessment questionnaire.
2. Application screening: applicants chosen to advance to this stage will provide detailed information on the project. The Province will assess and select applications to proceed to the final stage against “prioritization criteria”, which include the essentiality of the guarantee to securing equity and advancing the project, economic and social impact, project readiness, and the ability to leverage federal or private funding.
3. Due diligence review: selected applications will undergo comprehensive due diligence comparable to that in a commercial lending context. Applications selected to proceed past this stage will then negotiate the terms of a loan guarantee for their equity financing.

Once a loan guarantee is approved, projects will be subject to ongoing financial reporting, performance tracking, and compliance reviews to ensure continued viability and adherence to the terms of the guarantee. The Province and the applicant will mutually agree on the appropriate timing, form, and content for monitoring and reporting.

Comparison with Other Indigenous Equity Programs

The Program enters a landscape in which a number of comparable initiatives already exist at the federal and provincial levels, including the federal Indigenous Loan Guarantee Program (see our previous bulletin for further details), Alberta’s Indigenous Opportunities Corporation, Saskatchewan’s Indigenous Investment Finance Corporation, and Ontario’s Indigenous Opportunities Financing Program.

Each of these programs has distinct eligibility criteria, sector coverage, and geographic requirements that may shape how First Nations and project proponents structure their participation.

The following chart summarizes certain key differences among these programs with respect to eligibility and qualification criteria:

As the chart above illustrates, the eligibility requirements across these programs differ in several notable respects. The Program is unique among the comparable initiatives in expressly reserving a portion of its loan guarantee capacity for small- and medium-sized projects, a feature that may open doors for First Nations whose development opportunities do not involve mega-projects. The Program and Alberta’s initiative are among the broadest in sector coverage, while Ontario and Saskatchewan take a narrower approach, focusing primarily on energy, critical minerals, and resource development. Geographic nexus requirements also vary significantly: the Program requires projects to be located within the applicant’s traditional territory, whereas Alberta’s initiative requires only a demonstrated “benefit back to Alberta” and Saskatchewan’s initiative may accept out-of-province projects where significant economic benefit to the province can be shown. For First Nations evaluating which programs to pursue — or whether to layer multiple guarantees — these distinctions will be critical to structuring a viable financing strategy.

Looking Ahead

A key question for applicants will be how the Program interacts with the federal Indigenous Loan Guarantee Program in practice. The Province has indicated that it encourages applicants to work alongside the federal loan guarantee program where appropriate and that it will collaborate with the federal government to avoid duplication and ensure risks are appropriately shared. Federal loan guarantees will be taken into account at the application screening stage, as the ability to leverage federal or private funding is among the prioritization criteria. Applicants are also required to disclose any potential or confirmed grants from provincial or federal sources; while such grants will not affect eligibility, they will be considered in sizing the guarantee. For Nations pursuing equity stakes in larger projects, the ability to stack provincial and federal guarantees could be a significant advantage, but the mechanics of that coordination remain to be tested.

Similarly, it is not yet clear how, in practice, the Program will address overlapping territorial assertions among First Nations as well as conflicting approaches and intentions with respect to project development among Nations with overlapping interests. The Province has indicated that potential impacts of the project on other First Nations will be considered as part of risk assessment and due diligence. Applicants are required to confirm that a project is within their traditional territory and to disclose whether other Nations are asserting rights and/or title claims at the project location.

The Province has also stated that it will encourage partnership arrangements among First Nations and aims to work with all parties to address issues where possible. How the Province’s approach to these matters under the Program will compare to and interact with its approach in other decision-making contexts, such as resource development approvals, will become clearer as the Program becomes operational.