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BDC introduces platform to provide $4B to boost Canada’s defence and security ecosystem

BDC’s Defence Platform will help SMEs drive innovation, growth, and readiness in the sector

(MONTRÉAL) – December 17, 2025 – The Business Development Bank of Canada (BDC) is introducing its new Defence Platform to support Canadian companies working in defence and national security.

Through this platform, BDC will deploy up to $4 billion in financing, advice, and investment solutions to help businesses in the sector innovate and grow. The platform will also help attract additional private and allied country investment into Canada’s defence ecosystem.

The platform is intended to deliver a target of:

  • $3.5 billion in financing and advisory services to help Canadian businesses scale, diversify, and participate in the value chains of major defence contracts and national projects focused on sovereignty. These efforts will support SME capacity building and the production of defence goods.
  • $500 million in investments to accelerate defence innovation and strengthen the broader innovation ecosystem. The $500 million will be delivered through three streams:
    • StrongNorth Fund: a new venture capital fund focused on deep technologies with dual-use applications
    • Catalyst Innovation Fund: a second fund intended to serve as an innovation catalyst for the sector’s start up ecosystem
    • Targeted indirect investments in private funds aligned with Canada’s defence and sovereignty priorities

BDC’s Defence Platform will contribute to the government’s commitment to reach NATO’s target of spending 5% of GDP on defence by 2035. It will drive innovation, strengthen resilience, and help expand and diversify defence partnerships. BDC has worked with government and industry experts to maximize the impact of its platform and will continue to collaborate with the new Defence Investment Agency.

BDC’s support will focus on supply chains and direct sales destined for Canadian defence and security entities and their allies. Priority will be given to businesses operating in sectors critical to national security, including manufacturing, critical minerals, robotics, quantum computing, aerospace, artificial intelligence (AI), cybersecurity, and dual-use technology. The approach and allocations will evolve over time in response to market needs and strategic priorities.

BDC is also encouraging businesses from related industries to apply their skills to defence needs, especially if their technologies have both civilian and military uses. For example, advanced manufacturers can help fill gaps by supplying key parts for defence technologies.

Defence-aligned businesses are already accessing BDC support across financing, advisory, and investments, but the rollout of the new platform will enable the Bank to significantly expand the number of companies it can support – broadening access to financial solutions for businesses in the defence sector.

In order to deliver this platform with the greatest impact, BDC will continue to develop its expertise in various ways, including the hiring of industry experts and creating a dedicated team to serve the sector.

BDC’s Defence Platform is based on a $1 billion capital injection previously announced in the federal budget of November 4, 2025.

Quote

“BDC was born in 1944 in the wake of the Second World War, helping returning soldiers start new businesses and wartime factories convert to civilian production. Today, history calls on us again. Canada’s defence sector is entering a new strategic era, and SMEs are at the heart of this transformation. We know that entrepreneurs aligned to the sector face unique challenges in accessing capital and navigating complex supply chains, and BDC is stepping up to help them overcome these barriers, strengthen our sovereignty, and build a more secure and resilient nation.”

— Isabelle Hudon, President and CEO, BDC

About BDC: 80 years as Canada’s bank for entrepreneurs

BDC is a partner of choice for all entrepreneurs looking to access the financing and advice they need to build their businesses and tackle the big challenges of our time. Our investment arm, BDC Capital, offers a wide range of risk capital solutions to help grow the most innovative firms. BDC’s development role means we are in a state of perpetual evolution – wherever entrepreneurs go and whatever the Canadian economy needs – we will be there to help them defy the odds. 80 years later, that commitment remains very much alive. Our financing and investments in fiscal 2025 will add an estimated $25 billion to Canada’s GDP over the next five years. We are one of Canada’s Top 100 Employers and Canada’s Best Diversity Employers, and the first financial institution in Canada to receive the B Corp certification in 2013. For more information on our products and services and to consult free tools, templates and articles, visit bdc.ca or join BDC on social media.

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