Indigenous Business Australia and National Australia Bank have collaborated on a new corporation guarantee to support First Nations small business.

The partnership, announced on Monday, addresses one of the biggest barriers facing Indigenous businesses - access to finance.

It is designed to assist more majority Indigenous-owned businesses secure funding to support them to grow and prosper, where traditional lending requirements, such as property security, may have previously presented challenges.

Lending off up to $1 million per business will be supported through the initiatives with Indigenous Business Australia (IBA) guaranteeing up to 50 per cent of the loan amount.

The guarantee aligns with IBA's strategy to 2030, with a goal to invest $5 to 7 billion over the next five years to advance the commercial and economic interests of First Nations people.

It also forms part of National Australian Bank's (NAB) ambition to lend $1 billion to Australia's estimated 5,200 registered First Nations business and community organisations.

IBA Chief Executive Officer, David Knights, said the guarantee will help support more First Nations business owners access the funding they need to invest and expand.

"First Nations businesses bring deep experience and innovation to the Australian economy, and access to finance helps them take the next step," Mr 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."

The initiative builds on a Memorandum of Understanding signed by NAB and IBA in 2023, which forms part of the broader Indigenous business strategies and Reconciliation Action Plans of both organisations.

NAB business and private banking group executive, Andrew Auerbach, said the Indigenous Business Guarantee was a practical, targeted way for First Nations business customers to unlock growth.

"Strong First Nations businesses deserve innovative solutions that unlock capital, to help them realise their ambition and potential," Mr 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."

Businesses can speak to their NAB banker or NAB's dedicated Indigenous banking team to learn more about the Indigenous Business Guarantee.

Information is also available online.