Government of Canada taps BDC for $1 billion envelope to help steel and aluminium companies directly impacted by unfair tariffs
(MONTREAL) – May 4, 2026 – As announced earlier today by the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions Mélanie Joly, the Business Development Bank of Canada (BDC) will provide up to $1 billion in loans to help Canadian steel, aluminium and copper producing companies stand firm against the effects of tariffs, maintain operations, find new markets, and make it through this unique trade environment.
“A thriving steel and aluminium industry powers our manufacturing, construction and defence sectors, but these companies are facing unprecedented tariffs. When markets turn unfair, BDC steps up to give them the tools to stabilize their operations, keep their doors open and keep producing. Supporting businesses is all we do, but today it’s no longer just about economic growth, it’s about economic sovereignty. Together we’ll rise above the disruption and keep our focus on long-term success,” said Isabelle Hudon, President and CEO, BDC.
Previously profitable companies affected by tariff pressures have limited ability to pivot to new customers because their tooling is already configured and forward contracts are signed, which means they continue to ship products under increasingly compressed margins.
The focus of BDC’s new financing solution is alleviating the temporary liquidity shock of a changing tariff environment by addressing the immediate risk for companies: drained cash flows and working capital. BDC will provide working capital loans scaled to fit the size of business and their needs, from $2 million up to $50 million, with repayment of at preferential rates over 36 months.
The criteria will focus on businesses that were viable prior to direct exposure to tariff measures to give them financial breathing room to weather the temporary cash crunch. This new financing is consistent with BDC’s focus on empowering Canada’s economic sovereignty, and is over and above BDC’s existing range of tariff response solutions:
- Pivot to Grow is a $500 million envelope for financing and advisory services to help Canadian businesses impacted by tariffs.
- The Softwood Lumber Guarantee solution is a $1.2 billion envelope to help eligible Canadian softwood lumber businesses access financing and letters of credit issued by financial institutions, supported by a guarantee from BDC, which can help offset the financial strain of collateral or bonds related to duty payments.
- BDC’s Defence Platform is a $6 billion envelope for financing, investments, consulting and ecosystem support to help build Canada’s defence and security capabilities, necessary to ensure Canada’s economic sovereignty.
The $1 billion is part of a broader Government of Canada initiative to help the steel, aluminium and copper sectors, offering a choice of supports for these companies. BDC’s solution is not intended to be a cure-all for all of the sector’s challenges. BDC was careful to point out that market dynamics remain fluid, and plan to continue to stay close to the sector’s companies and associations to stay on top of developments. BDC remains prepared to adapt its solutions and approaches as market realities evolve.
For more information, please visit bdc.ca/metals.
About BDC, Canada’s bank for small- and medium-sized business owners
BDC focuses on small- and medium-sized business owners, providing them financing, investment, and advice. As Canada’s development bank, we also support entrepreneurs who don’t fit the traditional mold working with a network of partners and help develop underserved markets to unlock economic potential. Our mission is to build strong, resilient businesses that drive Canada’s economic growth. BDC is a perennial Canada’s Top 100 Employer and B Corp certified. Learn more at bdc.ca or connect with us on social media.
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