BDC to Provide C$4 Billion in Defense Loans to Support Canadian Military Spending

The Business Development Bank of Canada (BDC) announced its readiness to lend C$4 billion (approximately $2.9 billion) to companies in the defense and national security sectors. This initiative aims to assist Canada in increasing military spending to 5% of its GDP, in line with NATO commitments.

The financing follows a recent budget decision to allocate C$1 billion in capital to BDC, enabling it to offer loans and advisory services to small- and medium-sized enterprises involved in defense supply chains. While BDC currently serves the defense sector, the new funding is expected to broaden its support for more companies. Over the next five years, Canada plans to invest around C$60 billion to modernize its armed forces amid rising global security concerns, particularly regarding Russia and China.