By Paul Vieira
OTTAWA--Canada-owned Business Development Bank of Canada said Wednesday it was prepared to lend 4 billion Canadian dollars, or the equivalent of $2.9 billion, to companies working in the defense and national security fields.
The bank, known as BDC, said the financing would help the country raise its spending on the military to 5% of Canada's gross domestic product, as it agreed to do as a member of the North Atlantic Treaty Organization.
BDC unveiled this upgraded defense-lending portfolio after Canada agreed in its budget plan last month to inject C$1 billion of capital into the lender. The capital is designed to offer loans, venture capital, and advisory services to small-and medium-sized businesses so they can participate in the supply chains of major defense contracts.
The state-run lender says it already serves entrepreneurs in the defense and national security field, but the rollout of the new financing is expected to expand the number of companies it can support.
Isabelle Hudon, BDC's president and chief executive, said smaller firms in the defense and national security industries face challenges in accessing capital and navigating supply chains. "BDC is stepping up to help them overcome these barriers, strengthen our sovereignty, and build a more secure and resilient nation," she said.
Canada has pledged to spend roughly C$60 billion over the next five years to rearm and rebuild the country's armed forces, as western governments retool their militaries to deal with heightened risks posed by Russia and China, among others.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
December 17, 2025 15:58 ET (20:58 GMT)
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