Ontario has announced that it will expand the Aboriginal Loan Guarantee Program to encourage First Nation and Métis participation in the province’s clean energy economy. The expansion will make an additional $150 million available under the program.
To date, the Aboriginal Loan Guarantee Program has received applications totalling $250 million for projects that are expected to bring over 600 megawatts of clean, renewable energy online. That is approximately the amount of energy it takes to power 45,000 homes
The program provides loan guarantees of up to 75 per cent of an Aboriginal community’s investment in an eligible project, to help reduce barriers and make borrowing money to buy equity in eligible projects more affordable for First Nation and Métis communities.
Overview of the Aboriginal Loan Guarantee Program
Renewable energy projects like solar, wind, and hydroelectric and new transmission are eligible for the Aboriginal Loan Guarantee Program.
The program supports Aboriginal participation in renewable green energy infrastructure in Ontario like wind, solar and hydroelectric.
The program was announced in the 2009 Ontario budget. It is administered by the Ontario Financing Authority and provides a guarantee for a loan to purchase up to 75 per cent of an Aboriginal corporation’s equity in an eligible project.
The program includes both energy generation and electricity transmission projects, and there is a maximum of $50 million in loan guarantees per eligible project.