Breaking: BDC introduces platform to provide $4B to boost Canada’s defence and security ecosystem
Press Release
(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:
Strong North 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 7 information on our products and services and to consult free tools, templates and articles, visit bdc.ca or join BDC on social media.
Noah Note: Canada adds yet another financial instrument. Of course we had some heads up this was coming. Minister Joly spoke a few monrhs ago about giving BDC a new mandate for supporting the defence industry, a sector they had long avoided interaction with.
The Federal government is on the hunt to build capital in the defence industry. Its part of the major reasons why Canada, more than others, has taken such a heavy hand at trying to secure the future Defence, Security and Resilience Bank.
We want more capital, both private and through public instruments like BDC and the various pension funds scatgered about, who you will likely see also taking a step into the defence industry. Of course Canada has seen a massive influx of defence-related venture capital through the likes of Calian VENTURES, Vimy Forge, and CDL Defence to name a few off the top of my head.
Tbere is also the likes of COVE and DIANA around as well, whom fall put of this catagory but are similarly related in intent. All of this with the primary focus of funneling capital into Canada’s fledgling defence industry, whom has long had to deal with a financial system thay descriminated against them and government programs like IDEaS that, while well-intended, did not deliver the stable, long-term support that many SME need to survive.
Camt live off the rare 500,000 dollar IDEaS contract, can we? Especially when there is investers down south who will throw tens of millions at you for so much as breathing the right way. Anywho, to the main point the government is trying to find alternative ways to spur investment in the defence industry without entirely relying on government funding, or at least theiugh the budget. Despite record defence spending, it isnt enough to spur the Industrial Base, not at a time when we are looking for rampant growth across various sectors.
Lot of SME out there. I know about a hundred lol. All of them have struggled for funding, many still do. Despite all these new funds and all these big numbers the fundemental system is still hesitant, slow, and hasnt caught to the desired ambitions of government. That will take time, time that many smaller companies have to hold in cherished hands. It is a priceless commodity.
Nevertheless I am happy to see this front moving. We knew it was coming, but better now that waiting several more months for action. Although funny all this comes right before the holidays. You all better take a few weeks off so I can have a little vacation. Save your announcements for February.