Overview of the Aboriginal Loan Guarantee Program (ALGP)
- The $400 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 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.
