Business Development Bank boosts funds available to defence-sector entrepreneurs

The Business Development Bank of Canada is increasing the funds available to entrepreneurs looking to take advantage of an anticipated boom in defence spending.

Late last year, the federal Crown corporation announced up to $4 billion in financing, investment and advisory opportunities to small- and medium-sized businesses working in defence and national security.

BDC says uptake for its Defence Platform has been strong, with $91.7 million in financing already provided to 16 businesses.

So the funds available are being pumped up to $6 billion.

BDC CEO Isabelle Hudon said in a recent interview that the agency has historically taken a “shy position” toward the defence sector but decided now was the time to go “big and bold.”

She says BDC has been working hard to build credibility with those in the industry who want to know whether the financing and support will be available for the long haul.

The businesses BDC has partnered with in the space touch on cybersecurity, munitions and technologies with both military and civilian uses.

“We’ve opted to have a very inclusive and generous definition of defence,” Hudon said.

Hudon, a former Canadian ambassador to France, will be representing Canada in negotiations to set up an international Defence, Security and Resilience Bank, which is meant to reduce borrowing costs for military spending by pooling credit strength. Canada’s Big Six banks have thrown their support behind the idea, which NATO members are spearheading.

Hudon said negotiations should begin later this month and it’s not clear yet which countries will join.

A headquarters has also not yet been chosen, but several Canadian cities have thrown their hats in the ring.

“We’ll do everything possible to rally all countries around the fact that Canada would be the perfect host country,” Hudon said.

This report by The Canadian Press was first published March 12, 2026.

Lauren Krugel, The Canadian Press