Is your business eligible?
Check out some of the general requirements for our direct financing offers.*
Some exceptions may apply. Take a look at our FAQ.
| Location: | Headquarters in Canada |
|---|---|
| Industry: | Manufacturing operations (sawmills, lumber remanufacturing, pulp and paper mills, finished wood products manufacturers). Service operations** (forestry company harvesting lumber, lumber transportation). |
| Cash flow: | Sufficiently covered your obligations, including loan payments and other fixed costs, before 2025 (exception for sawmills) |
| Annual revenues: | $2M or more |
| Years in operation: | 3 years or more |
Liquidity support
Get up to a $25M loan1 to support your operations and cash flow needs, with flexible, interest-only terms designed to maintain continuity and bridge short-term financial pressures due to tariffs.
Transformation support
Access financing and expert advisory support to modernize manufacturing. Invest in automation, AI, and equipment to improve productivity, efficiency, and long-term competitiveness.
Softwood Lumber Guarantee Program
Access term loans and letters of credit through your financial institution, backed by a BDC guarantee—designed to strengthen liquidity for Canadian softwood lumber mills and remanufacturers.
You're in good hands
Benefit from strategic guidance and financing terms to give you more flexibility and financial control over your business.
We’re there in good times and in bad
We’ve supported our clients through market downturns and other events beyond their control.
We're not one size fits all
We take the time to review your business needs and offer solutions that leave you enough breathing room to realize your goals.
We’re committed to you long-term
We won't change our terms and conditions or demand early repayment without a valid reason.
Your questions deserve answers
What is the Forestry Support Program?
BDC is enhancing its Softwood Lumber Guarantee Program and offers two new financing options for businesses across the full forestry sector value chain. Structured around three distinct offers, the liquidity support provides access to working capital to help maintain operations, protect jobs and give businesses time to adapt. Companies can obtain up to $25 million (depending on their segment) in financing to provide temporary liquidity or support equipment investments at preferential rates.
The transformation support allows forestry manufacturers to access financing and work with BDC Advisory Services to build a structured roadmap that improves productivity and competitiveness, including adopting advanced technologies such as AI and automation. It may also include an analysis of potential partnerships or merger and acquisition opportunities to consider.
The indirect Softwood Lumber Guarantee Program enables businesses to obtain financing from their financial institution with a BDC-backed guarantee.
The objective of the Forestry Support Program is to provide flexible options and give otherwise sound businesses the time needed to navigate this period, protect jobs, maintain operations and adapt.
How can my business qualify for the liquidity support?
Is the liquidity support the same across all forestry sub-sectors?
No, it varies slightly depending on your sub-sector. If you are a forestry manufacturer—for example, operating in sawmills, softwood lumber remanufacturing, pulp and paper mills or finished wood products—you must meet specific criteria:
- Must be subject (or potentially subject) to U.S. lumber duties or show financial stress
- Canadian-based and headquartered business with operations in Canada
- Minimum $2M annual revenue
- Loan must be strictly for operational cash flow
And your loan terms, subject to approval, will be as follows:
- Loan up to $25 million
- Term is 36 months
- Preferential rates available
If you are a forestry service company operating in harvesting or transportation, you must meet the following criteria:
- Must show a financial decline
- Must report ≥60% revenue from your industry-specific activities (harvesting or hauling)
- Canadian-based and headquartered business with operations in Canada
- Minimum $2M annual revenue
- Loan must be strictly for operational cash flow
And your loan terms, subject to approval, will be as follows:
- Loan up to $10 million
- Term is 96 months
- Preferential rates available
What financing options are available to me if I have less than $2M in revenue?
You can consult our other financing offers and our resources on our trade and uncertainty page. You may also consult Canada’s Regional Development Agencies to find regionally specific financing programs and support to help strengthen your business.
Can I apply to this program if I have obtained an indirect loan through the Softwood Lumber indirect program?
Why should I consider the transformation support at this time?
This is a unique opportunity for companies in forestry manufacturing to get access to advice and financing, at a preferential rate, to support investments in advanced technology to improve their:
- Automation and AI adoption
- Equipment acquisition
It is also a unique opportunity to explore other options including partnerships in the sector and/or mergers and acquisitions.
What documents do I need to provide?
Once you have completed the BDC online application form, a representative will contact you to request additional documentation. You should prepare*:
- An organizational chart
- 3 years of financial statements (including interim FIs, if applicable)
- Recent financial statements including cash-flow statements
- Borrowing based information and compliance certificate
- Tariff-related requirements and supporting information for finished wood product manufacturers
*More detailed documents could be required depending on your specific sub-sector.
What can the liquidity support be used for?
What other support do you offer businesses struggling in the current trade environment?
Can I apply even if my company has another BDC loan?
Ready to apply?
1Conditions apply. Subject to loan approval. Maximum loan amounts may differ by sectors. Businesses must demonstrate direct or indirect negative material impact on their operations and profitability due to U.S. tariffs, related uncertainties or current economic downturn. Loan must be used to address potential impacts from tariffs, related uncertainties or current economic downturn. The business must have been viable before the implementation of tariffs.