BDC Expands Defence Sector Support to $6 Billion, Targets Dual-Use Tech
The Business Development Bank of Canada (BDC) has announced a significant expansion of its defence platform, increasing available funding from $4 billion to $6 billion. This move comes after the federal Crown corporation has already financed $91.7 million since the platform's launch in December 2025.
Strengthening Canada's Defence Ecosystem
Peter Dawe, who leads BDC's defence platform, emphasized the convergence of economic and national sovereignty interests in Canada. "Canada's economic and national sovereignty interests are converging at an incredible pace," Dawe stated in a press release. He explained that BDC aims to strengthen the defence ecosystem through both indirect and direct financial solutions for businesses.
The expanded funding will support strong demand for opportunities among Canadian small- and medium-sized enterprises (SMEs) in the defence sector. Since the initial rollout, 16 businesses have received $91.7 million in financing, while another 16 have engaged BDC's advisory services for defence-related opportunities.
Strategic Focus on Dual-Use Technologies
One of the key components of BDC's expanded defence platform is the StrongNorth Fund, a $300 million venture capital fund focused on deep technologies with dual-use applications. Peter Suma, with over 25 years of experience in defence-related technologies including artificial intelligence, robotics, semiconductors, and advanced systems, has been appointed as managing partner to lead this initiative.
"Our focus is deliberately practical: investing in and scaling homegrown defence and dual-use technologies that will shape the country's future," Suma explained. The fund specifically targets Canadian early-stage startups developing technologies with defence-focused or dual-use applications and strategies.
Building for Future Demand
Dawe noted that while current progress represents a good start, significant work remains ahead. "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," he said.
The indirect support component aims to connect Canadian SMEs and startups with priority defence and sovereignty needs in Canada and allied countries. This includes working with incubators, accelerators, universities, and other organizations to build capacity within the defence sector.
Expanding Partnerships and Reach
BDC is actively exploring new partnerships to reach more entrepreneurs. The corporation recently announced it is co-developing a strategic forum with the Chamber of Commerce of Metropolitan Montreal, scheduled for April 2, 2026, with a focus on strengthening Canada's defence and security ecosystem.
By establishing a strong baseline for the defence sector, BDC aims to enable more Canadian firms to scale their operations, integrate into global defence supply chains, and contribute to Canada's economic resilience and sovereignty. The expanded $6 billion platform represents a substantial commitment to positioning Canadian businesses at the forefront of defence innovation and technology development.
