BDC expands support for defence sector businesses to $6 billion
Canada’s defence sector is getting another boost after the Business Development Bank of Canada (BDC) announced it is expanding its defence platform to $6 billion from $4 billion after already financing $91.7 million since it launched in December.
The federal Crown corporation said the major expansion in financing will support strong demand for opportunities for Canadian small- and medium-sized enterprises (SMEs) in the defence sector.
“Canada’s economic and national sovereignty interests are converging at an incredible pace,” Peter Dawe, who leads BDC’s defence platform, said in a press release. He said BDC wants to strengthen the defence ecosystem through indirect and direct financial solutions for businesses.
The indirect support aims to connect Canadian SMEs and startups with “priority defence and sovereignty needs in Canada and allied countries,” said Dawe. This includes working with incubators, accelerators, universities and other organizations.
BDC introduced the platform on Dec. 17 with the aim of supporting Canadian companies working in defence and national security, saying it will “boost Canada’s defence and security ecosystem.”
It initially deployed $4 billion, with the majority intended for financing and advisory service, to support SME capacity-building and the production of defence goods.
Since that rollout, BDC said 16 business have received $91.7 million in financing. It also said that 16 businesses have engaged its advisory services for defence-related opportunities.
“It’s a good start, but there’s so much more work to be done as the real peak demand lies ahead in 2027 and 2028, and we’re building now to be ready,” said Dawe.
One key hire within its defence platform is Peter Suma, who will lead BDC’s StrongNorth Fund as managing partner. StrongNorth was first unveiled in December as a new venture capital fund “focused on deep technologies with dual-use applications.”
BDC said the fund, worth $300 million, will support Canadian early-stage startups developing deep technologies with defence-focused or dual-use applications or strategies.
Suma has more than 25 years of experience in defence related technologies, including artificial intelligence (AI), robotics, semiconductors and advanced systems, it said.
“Our focus is deliberately practical: investing in and scaling homegrown defence and dual-use technologies that will shape the country’s future,” said Suma.
BDC said it is also exploring new partnerships to reach more entrepreneurs. It recently announced co-developing a strategic forum with the Chamber of Commerce of Metropolitan Montreal on April 2 focused on strengthening Canada’s defence and security ecosystem.
By establishing a strong baseline for the defence sector, BDC said, more Canadian firms will be able to scale, integrate into global defence supply chains and “contribute to Canada’s economic resilience and sovereignty.”
• Email: dpaglinawan@postmedia.com