When Canada talks about transforming its defence and security posture, the conversation often turns to ships, aircraft, satellites, and critical digital infrastructure. But behind every major capability stands a constellation of small and medium-sized enterprises—innovators, advanced manufacturers, technology disruptors—whose breakthroughs fuel national readiness. Now, with the launch of its new Defence Platform, the Business Development Bank of Canada (BDC) is making a historic move to strengthen that foundation.
Unveiled in Montréal on December 17, 2025, the platform represents one of the most significant financial commitments ever dedicated to Canadian defence-aligned companies. Through a mix of financing, advisory services, and targeted investment solutions, BDC will deploy up to $4 billion to accelerate innovation, expand production capacity, and attract new global partners into Canada’s defence ecosystem.
“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,” expressed Isabelle Hudon, President and CEO, BDC.
A $4B Platform Designed to Scale Canadian Capability
BDC’s Defence Platform is built around two core pillars that together aim to grow the industrial and technological base needed for Canada’s evolving security environment.
1. $3.5B for financing and advisory services
This portion will help Canadian businesses scale operations, diversify into new markets, and position themselves within the supply chains of major defence contracts and sovereignty-driven national projects. By strengthening SME capacity building and enabling the production of defence goods, BDC is supporting companies that want to move from “potential partner” to “critical supplier.”
2. $500M in strategic investments to drive innovation
Delivered through three streams, this investment package is designed to energize Canada’s deep-tech and dual-use innovation pipeline:
- StrongNorth Fund: A venture capital fund backing deep technologies with dual-use applications—those that can serve civilian markets while directly contributing to defence needs.
- Catalyst Innovation Fund: A fund focused on accelerating early-stage innovation by strengthening the defence startup ecosystem.
- Targeted indirect investments: Strategic injections into private funds aligned with Canada’s defence and sovereignty priorities.
Together, these streams expand Canada’s capacity to build the next generation of robotics, quantum systems, cybersecurity tools, AI capabilities, aerospace technologies, and advanced materials.
Advancing Canada’s Defence Ambitions—and the NATO Commitment
The Defence Platform is more than a financing initiative; it is an instrument of national strategy. Its rollout contributes directly to the federal government’s plan to reach 5% of GDP spending on defence by 2035, a benchmark set within Canada’s commitments to NATO.
By helping Canadian companies innovate, scale, and export, the platform enhances the country’s defence readiness while forging deeper industrial links with allies. It also aligns with the mandate of the new Defence Investment Agency, with BDC committing to ongoing collaboration to maximize the platform’s impact.
Targeting High-Priority Sectors That Shape National Security
BDC’s support will focus on companies serving Canadian defence and security entities and allied partners. Priority sectors include:
- Manufacturing and advanced materials
- Critical minerals
- Robotics and autonomous systems
- Quantum computing
- Aerospace technologies
- Artificial intelligence
- Cybersecurity
- Dual-use technologies with both civilian and military applications
This approach acknowledges that the future of defence capability depends on industries that may not traditionally see themselves as defence contractors—but whose technologies can fill urgent capability gaps.
BDC is encouraging these adjacent-sector companies to step forward. Advanced manufacturers, for example, are well-positioned to supply key components needed across defence platforms, from aircraft structures to digital hardware.
Expanding Access—and Building Expertise
Defense-aligned businesses already engage with BDC across its financing, advisory, and investment programs. But the new $4B platform will dramatically expand that reach—broadening access to capital and expertise for companies that want to scale into defence opportunities but may have lacked a clear entry point.
To ensure maximum impact, BDC is deepening its own bench strength. The Bank is hiring industry experts and forming a dedicated team to guide companies through the complexities of defence markets and procurement landscapes.
This expanded capability is underpinned by the federal government’s previously announced $1 billion capital injection from the November 4, 2025 budget—now transformed into a catalytic tool for Canadian innovation and sovereignty.
A National Moment of Opportunity
As global security challenges intensify and allies accelerate their defence industrial bases, BDC’s Defence Platform arrives at a pivotal moment. With SMEs driving much of today’s technological disruption, Canada now has a powerful mechanism to amplify their contributions, strengthen supply chains, and elevate homegrown technologies onto the world stage.
The move signals a new era: one where Canadian innovation isn’t just competitive—it’s mission-critical.