Supporting SMEs is all we do. We provide financing, capital and advisory services to help start, grow, and scale businesses.
At every stage of the entrepreneurial journey, we’re here to help—whether it’s building your first business plan, securing your first investor, financing new equipment, or buying another business.
We’re committed to delivering real value to our clients and our Shareholder, the Government of Canada. That’s why BDC is financially self-sufficient—so we’re a net benefit to Canadian taxpayers.
By the numbers
Economic impact
$28B
estimated contribution to Canada’s GDP over the next five years from fiscal 2026 activities
+31%
848 Canadian companies backed through venture capital and private equity in fiscal 2026, vs. 647 in fiscal 2022
Economic sovereignty
$6B
in financial support to strengthen Canada’s defence ecosystem through BDC’s Defence Platform
Client outcomes
Up to 2X
the revenue growth of the Canadian average
72%
of BDC clients are promoters, with 85% overall satisfaction and 98% satisfaction with our online financing
Clients served
101,135
clients served in fiscal 2026
+106%
client growth over 10 years (+52,135 entrepreneurs)
Message from the Chair of the Board of Directors
In today’s environment, BDC’s mandate is not only clear—it is critical.
Entrepreneurs faced a year unlike any other—unprecedented trade disruptions, escalating global conflict, inflation, recalibrating supply chains, scarcity of skilled labour, AI changing the competitive landscape, higher borrowing costs, and intensifying competition. The ecosystem that supports small businesses needed to write a new playbook.
When markets and the ecosystem that supports Canada’s businesses pull back, BDC steps forward.
Brian O’Neil
Chair of the Board of Directors
BDC’s mandate in a more demanding environment
When markets pull back, BDC steps forward. The Bank delivers targeted, market-complementary financing, capital and advice so Canadian businesses can grow, transition and remain in Canadian hands. This is not theoretical—it is what entrepreneurs expect of us. Created to help entrepreneurs turn disruption into opportunity, BDC’s development purpose continues to guide the institution today. The Board’s responsibility is to ensure BDC delivers on its public policy mandate while maintaining the financial capacity to act when entrepreneurs need it most. That balance—between impact and long-term sustainability—has always defined the institution. Shifting economic conditions, evolving trade dynamics and a more complex risk environment now demand clearer choices, faster decisions and closer oversight.
Over the past year, the Board endorsed management’s decision to lean more decisively into BDC’s development role. Prolonged trade uncertainty and tariff pressures dampened investment intentions across the country, leading more businesses to seek liquidity support, transition financing and advice on building trade resilience. This is exactly what BDC was built for.
At the same time, as digital adoption programs wound down, needs shifted toward more targeted resilience-focused support—including liquidity, market diversification, and other economic sovereignty priorities—to help businesses respond to disruption
Oversight, discipline and deliberate risk-taking
Throughout the year, the Board maintained a strong focus on governance, risk management and capital adequacy. While BDC’s portfolio includes a higher share of younger and higher-risk businesses, the Bank’s capital position remained above internal targets. This ensures BDC can act when others cannot.
The Board was clear-eyed about the implications of leaning further into the development mandate during a period of elevated uncertainty. Addressing acute market gaps—particularly those related to trade disruption, transition financing and strategic sectors—placed near-term pressure on portfolio risk and financial performance. We supported this approach as a deliberate and governed choice.
The Board also remained closely engaged on operational effectiveness and productivity so that BDC could do more without losing focus or discipline. With intensifying economic pressures, cost discipline, careful resource allocation and process modernization were essential.
BDC is taking on a vital role in reshaping Canada’s defence sector. The Board supported management as the Bank built new capabilities to support Canada’s defence and national security ecosystem
Confidence in strategy, leadership and execution
Beyond financial oversight, the Board places strong emphasis on leadership, culture and values. BDC’s people continue to support entrepreneurs through sustained uncertainty while adapting to new demands.
Canada is navigating structural change. Entrepreneurs are being asked to adapt faster, manage greater risk and make decisions under pressure. What matters most is whether institutions show up reliably—and BDC has.
The Board is confident in BDC’s strategy, in management’s execution, and in the Bank’s ability to continue delivering on its mandate.
As Chair, I thank my fellow directors for their willingness to make difficult, but necessary, decisions. We remain fully engaged in supporting the Bank as it helps Canada’s entrepreneurs build stronger businesses—today and for the years ahead
Message from the President and CEO
Fiscal 2026 tested BDC on every front. We delivered strong business performance while taking on more—launching new platforms, stepping in decisively where markets fell short, and doing so with a workforce that grew more engaged. That combination—performance, institution building and people—defines this year.
Canada entered fiscal 2026 at an inflection point. Artificial intelligence, tighter capital and talent, trade disruption and a wave of ownership transfers began reshaping business decisions simultaneously, with direct implications for productivity, competitiveness and Canada’s economic resilience and sovereignty. SMEs remain the engine of Canada’s economy. BDC is their bank—built uniquely to step in when the market will not.
We are committed to acting—not waiting—by backing entrepreneurs who are building, scaling and innovating under the new rules of business.
Isabelle Hudon
President and CEO
This year, we leaned further into our development bank role, creating new support solutions for sectors most affected by ongoing trade disputes and economic uncertainty—while continuing to grow our core business.
As trade pressures intensified, BDC engaged directly with entrepreneurs to stay closely aligned with conditions on the ground and adapt our response in real time. Through Pivot to Grow, launched in March 2025, we supported businesses as they absorbed shocks, preserved liquidity and repositioned for growth. BDC’s active presence—listening to entrepreneurs and sharing timely insights as conditions evolved—played a meaningful role in supporting investment decisions.
Building platforms critical to Canada’s resilience
As economic resilience, security and growth have become increasingly intertwined, we stepped more firmly into an area central to Canada’s long-term strength: defence and dual-use innovation.
In December, BDC launched its Defence Platform. We moved quickly with our first investments in Canadian companies developing critical technologies and became the first partner of Creative Destruction Lab’s Global Defence program—connecting innovators with mentors, investors and procurement experts to accelerate commercialization and scale.
To support this work, we quickly strengthened defence leadership and began assembling a specialized team across financing, investment and advisory activities. Building this platform is a defining institutional choice
Beyond defence, our integrated approach continued to shape our work. Financing activity stabilized despite a challenging economic backdrop. Demand for business transfer capital increased as owners navigated succession, restructuring and growth under tighter conditions. Advisory services evolved away from broad digital adoption toward more targeted, resilience-focused support aligned with today’s realities.
Raising expectations—and engagement—together
None of this happens without our people.
Throughout the year, BDC teams supported clients making difficult decisions, adapted rapidly as conditions shifted, and delivered with professionalism and purpose—including in close collaboration with industry and financial partners across key sectors. Even as expectations rose and the pace intensified, employee engagement strengthened.
Participation in our engagement survey reached 89 percent, with our Corporate Values Survey showing engagement at 80 percent—a meaningful signal of pride. We continue to score strongly on inclusion and on BDC being a place where people can be themselves.
Productivity remained a constant focus. We strengthened cost discipline and risk and compliance practices. We accelerated the responsible, everyday use of AI to improve speed, consistency and decision-making, while keeping human judgment at the centre. We also advanced our commitment to reconciliation through progress toward Partnership Accreditation in Indigenous Relations (PAIR) certification, building stronger, trust-based relationships with Indigenous partners.
Financially, our performance reflected both the volatility of the environment and the role we play within it. We maintained capital levels above internal targets so we could continue supporting entrepreneurs while managing risk prudently.
For over 80 years, BDC has consistently been called upon to act when conditions are hardest—when entrepreneurs need more than reassurance. Fiscal 2026 was one of those moments.
At BDC, we are committed to acting—not waiting—by backing entrepreneurs who are building, scaling and innovating under the new rules of business, here in Canada
A development bank built for Canada
BDC reflects a distinctly Canadian approach to development banking: pragmatic, disciplined and market complementary.
In addition to being the bank of entrepreneurs, we’re also a trailblazer—leaning into market segments with great economic potential or need, but unsupported by the private sector. We help struggling sectors rebound and make access to financial solutions easier for those who don’t fit the standard mould.
Turning mission into action
Defence – $6B
platform strengthening Canada’s defence and strategic industrial capacity
Loans and investments as at March 31, 2026: $119M
Pivot to grow – $500M
to help businesses absorb shocks and reposition for growth
Loans as at March 31, 2026: $177M
Softwood lumber – $1.2B
supporting a critical national industry
Loans and loan guarantees as at March 31, 2026: $220M
Community banking – 100K+ clients
The number of entrepreneurs we aim to reach in the next 10 years through 80 partners
Loans and loan guarantees as at March 31, 2026: $1.7B
Women entrepreneurs – $8B
Serving women owners at record levels, in BDC loans committed, including our $500M Thrive platform supporting women-led growth companies, from early-stage through scale.
+21K
women-owned businesses supported
Loans and investments as at March 31, 2026: $8.2B
Indigenous entrepreneurs
Advancing economic reconciliation through financing, partnerships and community-based delivery, including:
Business Acquisition Loan for Indigenous Communities (BALIC)
Launched, with the First Nations Bank of Canada, a $100M business acquisition loan guarantee program for Indigenous communities, economic development agencies and majority-owned Indigenous businesses.
Indigenous Growth Fund
BDC was an anchor investor in the $100M fund supporting Indigenous-led businesses across Canada
Indigenous Entrepreneur Loan
Up to $350,000 in flexible financing to support Indigenous entrepreneurs operating on and off community
Loans, investments and loan guarantees as at March 31, 2026: $1.5B
Black entrepreneurs – $130M
Expanding access to capital through the Black Entrepreneurship Program, delivered with community partners
$388M
Loans and investments for Black entrepreneurs as at March 31, 2026
Supporting SMEs in a critical year
$500M
Pivot to Grow Tariff Response Program
Launched Pivot to Grow at the end of fiscal 2025, a $500M tariff response envelope to help SMEs preserve liquidity and adapt to trade disruption, including across steel and aluminum production and processing
$85M
Inclusive Entrepreneurship Loan
Provided loans to more than 500 women, Black, and Indigenous entrepreneurs—alongside advisory and training services—reflecting strong demand among equity-deserving groups.
$100M
Business Acquisition Loan for Indigenous Communities (BALIC)
Launched a $100M joint initiative with the First Nations Bank of Canada to support business acquisitions by Indigenous communities, economic development agencies and majority owned Indigenous businesses.
$200M
Industrial Innovation Venture Fund II
Launched a $200M venture capital fund to invest in productivity enhancing technologies across advanced manufacturing, industrial sectors, and critical minerals.
$50M
Thrive Entrepreneurship Through Acquisition (ETA) Fund
Launched the $50M Thrive Entrepreneurship Through Acquisition (ETA) Fund to expand access to transition capital for women-led business acquisitions, the first of its kind in Canada.
$100M
Community Banking expansion
BDC and Community Futures, along with other partners, joined forces to expand access to financing and advice for the 520,000 entrepreneurs in rural and remote communities.
BDC Small Business Week™
National Engagement
Another successful BDC Small Business Week, with 108 events, approximately 12,000 participants and 70,000 website visits.
$1.2B
Softwood Lumber Guarantee Program
Delivered $202M in loan guarantees, helping softwood lumber businesses access liquidity and manage prolonged U.S. trade pressures.
$6B
Defence Platform
Launched a $6B Defence Platform to support SMEs in defence, security and dual-use sectors to strengthen Canada’s industrial capacity and supply chains.
Financing solutions
As Canada’s only bank devoted exclusively to entrepreneurs, we’re more than a lender—we’re a long-term business partner.
Smallest businesses
Typically, businesses with revenues less than $2M (e.g., retail) looking to manage day-to-day operations, purchase real estate, pay suppliers, or cover essential costs to get established.
Small businesses
Typically, businesses with revenues between $2M and $10M (e.g., manufacturing) looking to purchase equipment, expand into North American markets, or refinance existing debt to support its next phase of growth—such as securing a major contract or entering a new market.
Medium businesses
Typically, businesses with revenues above $10M (e.g., infrastructure) looking to acquire assets, expand internationally, or refinance existing debt to scale into Canadian champions and grow in global markets.
(loan commitments as at March 31, 2026)
BDC supports businesses across Canada with loans and advice to help them take advantage of a projected $300B transfer of business ownership. Through our Growth & Transition Capital (GTC) team, we work with buyers and sellers—financing acquisitions alongside other capital providers and giving owners more options when exiting their business.
Companies that acquire other businesses can earn up to 4× higher profits than those that don’t.
Investments
BDC is Canada’s most active venture capital investor. Our goal is to help the entire ecosystem grow and turn great ideas into globally competitive Canadian companies. Canadian champions are the fuel for our long-term economic sovereignty.
Seed stage
What they are
Early-stage companies testing a new idea or technology.
What they need
Early capital to test, build, and prove the concept.
Early-stage
What they are
Companies with early customers and momentum.
What they need
Capital to grow revenue, expand their customer base, and strengthen operations.
Late-stage/growth
What they are
Established companies that know their product works and are ready to scale.
What they need
Growth capital to scale faster and compete globally.
Seed stage
What they are
New investment teams launching their first venture capital fund.
How we help
We provide early backing so they can start investing, and build a track record in Canada.
Developing
What they are
Fund managers growing their experience and scale.
What they need
We help these funds take the next step and invest in more Canadian companies.
Established
What they are
Experienced fund managers with a strong track record.
What they need
We help leading Canadian investors grow strong Canadian companies and strengthen Canada’s economic sovereignty
Advice
Every entrepreneur needs a good team around them. BDC’s Advisory Services helps business owners think through their biggest moments. We help them get to growth faster and cheaper than going it alone.
Looking for practical ways to scale operations without putting pressure on cash flow, as well as partners to guide growth in manageable, low-risk steps.
Top-3 Services (based on # mandates – F26)
- Sales & Marketing
- Strategic Planning
- Financial Management and Planning
Looking for levers that materially improve performance and competitiveness, with advice that is concrete, results-driven, and directly tied to growth outcomes.
Top-3 Services (based on # mandates – F26)
- Trade Diversification & Resilience
- Operational Efficiency
- Strategy & Business Transition
Looking for strategic partners who can support complex growth, help structure scale, and enable long-term competitive leadership across markets.
Top-3 Services (based on # mandates – F26)
- Trade Diversification & Resilience
- Operational Efficiency
- Strategy & Business Transition
Ambitious, high-growth Canadian companies.
Product Segments
Flagship offering that helps CEOs and executive teams scale their companies faster by strengthening leadership, strategy, and execution through trusted, senior-level advisory support.
Learning platform that builds entrepreneurs’ capabilities at scale.
Product Segments
Offers accessible, tailored, and practical learning experiences that strengthen leadership, management, and execution across every stage of the business journey.
Financial performance
BDC brings value to its clients every day. We are equally committed to delivering value to our shareholder, the Government of Canada, by operating as a well-run Crown corporation.
BDC operates on commercial principles, must remain profitable, and fully funds its own core operations. This underpins our commitment to ensuring BDC is never a burden on taxpayers.
These profits allow us to return dividends to the Government of Canada—ensuring that our success directly benefits Canadians.
By the numbers
37.0%
Efficiency ratio
For every dollar of revenue we generated, we spent nearly $0.37 on administrative costs.
$2.1B
Net revenue
$58.6B
Total committed to clients
$1.08B
Core net income
$472.4M
Provision for expected credit losses
The amount BDC sets aside each year to cover loans that may not be fully repaid in the future (vs. $799.4M in fiscal 2025)
Value returned to the Canadian taxpayer
$1.5B
Dividends paid from fiscal 2022 to fiscal 2026
$75M
Dividend declared for fiscal 2026
Consistent with our mission, we take on greater risk to support businesses that fall outside standard lending models—particularly smaller, younger firms and those affected by trade and technology disruptions. We addressed this gap through different initiatives, including by expanding small loan lending (up to $2 million) and strengthening tailored programs through a specialized community banking business line.
Doing business the right way
Sustainability is an economic imperative.
For BDC, it means supporting inclusive growth, helping businesses adapt to transition, and operating with strong governance. We integrate environmental, social and governance considerations into how we deliver financing, advisory services and partnerships—strengthening resilience, productivity and long-term competitiveness across Canada.
By the numbers
$1.3B
Investments in 116 cleantech companies and 35 funds
$10.54
Leveraged for every dollar BDC invests in cleantech
$678M
Loans for green companies and projects in fiscal 2026
43%
Reduction in emissions from our operations since fiscal 2020
13
LEED®-certified business centres in Canada, reflecting our commitment to energy-efficient and environmentally responsible facilities
Recognition and leadership
PAIR-certified Phase 1
Advancing our reconciliation journey
Certified B Corp
Recognizing strong environmental, social and governance standards
Top Diversity Employer
Top Diversity Employer for 16 consecutive years
Top 100 Employers
One of Canada’s Top 100 Employers for 19 years