NAB and IBA unveil guarantee to boost First Nations lending
National Australia Bank (NAB) and Indigenous Business Australia (IBA) have launched a new corporate guarantee intended to expand access to finance for First Nations businesses.
The Indigenous Business Guarantee backs up to 50 per cent of an eligible loan amount, with support available up to $1 million per business.
Key Points
- NAB and IBA launch Indigenous Business Guarantee on 1 June 2026
- IBA to guarantee up to 50 per cent of eligible business loans
- Support available up to $1 million per individual loan
- Initiative targets barriers such as property security requirements
- Part of NAB’s $1 billion lending ambition to First Nations sector
- Aligned with IBA’s 2030 strategy to invest $5–$7 billion
- MoU signed in 2023 underpins ongoing collaboration and delivery
New guarantee targets finance barriers
The initiative is designed to address one of the most persistent barriers cited for First Nations enterprises: meeting traditional lending requirements, including property security. By sharing risk, the Indigenous Business Guarantee aims to help viable businesses secure capital to invest, grow and create jobs where collateral constraints have limited borrowing.
The program builds on ongoing collaboration between NAB and IBA and supports NAB’s stated ambition to lend $1 billion to Australia’s estimated 5,200 registered First Nations business and community organisations. It also aligns with IBA’s strategy to 2030, which targets investment of $5 to $7 billion over the next five years to advance the commercial and economic interests of First Nations people.
“Strong First Nations businesses deserve innovative solutions that unlock capital, to help them realise their ambition and potential,” NAB Business executive Andrew Auerbach said.
“This guarantee helps remove that barrier, enabling good businesses to invest, grow and create jobs on their own terms. First Nations businesses are critical to local economies and communities. When they succeed, the benefits flow well beyond the business itself.”
NAB and IBA describe the guarantee as a practical, targeted instrument to bridge credit access gaps and support sustainable business outcomes. The launch follows a Memorandum of Understanding signed by the two organisations in 2023 and is presented as part of both institutions’ broader Indigenous business strategies and Reconciliation Action Plans.
Eligibility, limits and responsible lending
The guarantee supports lending of up to $1 million per business, with IBA guaranteeing up to 50 per cent of the loan amount. Eligibility requirements specify that businesses must be at least 50 per cent First Nations owned with active management of the business. Any lending remains subject to NAB’s standard credit assessment and responsible lending practices. Lending under the guarantee is also subject to IBA’s eligibility requirements, program limits and the ongoing participation of both NAB and IBA. Terms, conditions, fees and charges may apply.
Program materials emphasise that the guarantee is intended to broaden access to capital, in partnership with the mainstream financial sector. NAB and IBA state the mechanism is meant to support businesses that have strong prospects but face challenges with property security or other traditional collateral.
“First Nations businesses bring deep experience and innovation to the Australian economy, and access to finance helps them take the next step,” IBA chief executive David Knights said.
“By broadening the access to capital for First Nations businesses and collaborating with the financial sector, we can expand the support available for businesses to achieve their goals. This is about backing strong businesses and supporting sustainable economic outcomes for First Nations people.”
Further information for businesses
- More about NAB’s $1 billion lending ambition to First Nations businesses and community organisations can be found on page 20 of NAB’s 2025 Annual Report
- More about the IBA Strategy towards 2030 can be found on the IBA website, Corporate documents page
- Businesses can speak to their NAB banker or NAB’s dedicated Indigenous Banking team to learn more about the Indigenous Business Guarantee or visit Indigenous business banking – NAB
First Nations business growth is estimated at nine per cent a year for the last five years, faster than the broader economy.
About Indigenous Business Australia (IBA)
Economic independence for Aboriginal and Torres Strait Islander people is at the heart of IBA’s mandate. Its programs support Indigenous Australians to buy their own homes, be successful in business, and invest in commercial ventures that provide strong financial returns. IBA was established under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is a corporate Commonwealth entity for the purposes of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). IBA resides in the portfolio of the Prime Minister and Cabinet and is accountable to the Australian Parliament through the Minister for Indigenous Australians, Senator the Hon Malarndirri McCarthy.
About National Australia Bank (NAB)
At National Australia Bank (NAB) Group, the ambition stated is to be the most customer-centric company in Australia and New Zealand. More than 41,000 colleagues at the bank provide 10 million customers with secure, easy and reliable banking services. About 88% of the Group’s workforce are located in Australia and New Zealand, while others work in Asia, London, New York and Paris. NAB describes itself as Australia’s largest business lender and highlights its ongoing support for customers.
