BDC leans further into development role amid tariff challenges, set to deliver $700M in new liquidity for struggling softwood lumber sector

BDC, financial institutions and industry come together to deliver targeted assistance

MONTREAL, Oct. 15, 2025 (GLOBE NEWSWIRE) -- As announced by Minister of Industry Mélanie Joly today, the Business Development Bank of Canada (BDC) will make it easier for the country’s softwood lumber businesses to access to $700 million in new term loans or letters of credit through their primary financial institution.

The $700 million program is part of a broader Government of Canada initiative to help the sector, and was designed after discussions with companies, industry associations and financial institutions to determine how financing options could help address the needs of softwood lumber businesses.

As a result of these discussions, BDC will provide guarantees to the financial institutions of eligible softwood sawmills, lumbermills and remanufacturers. These guarantees can be used to access financing and letters of credit, which can help offset the financial strain of collateral or bonds related to duty payments. BDC emphasized the program is not intended as a cure-all for the sector’s considerable challenges but rather act as a complementary tool with other financial options and government support programs to help these businesses continue to operate and better manage through an ever-evolving situation.

The new program follows more than $500 million in tariff-specific solutions delivered by BDC through its $500 million Pivot to Grow to provide eligible SMEs of any sector with advisory and financing options, including loans up to $5 million. Eligible softwood lumber businesses and the forestry industry as a whole can access the Pivot to Grow program.

The above-noted stakeholders had two key requests: get the financing to market as quickly as possible with the least impact on businesses. That’s why BDC’s solution will be delivered through their existing lenders, reducing funding time and administrative requirements. The support will focus on softwood sawmills, lumbermills and remanufacturing mills whose principal business is the exportation of softwood lumber products to the United States to continue to operate their businesses during the current economic challenges.

BDC, Canada’s only development bank dedicated solely to small- and medium-sized business, continues to work in concert with governments, the private sector and stakeholders within the ecosystem that supports SMEs as part of the broader Canadian response to trade tensions. BDC’s role is focused on providing business advice and financial tools to help them with financial management, operational efficiency, strategic business acquisitions, and market/sector diversification as they seek new growth opportunities.

Quotes

“Canada’s softwood lumber sector supports thousands of workers and plays a vital role in Indigenous communities and our economy. This $700 million in new liquidity will help businesses stay resilient through trade challenges, reinvest in their operations, and continue building Canada’s future. We’re delivering this support quickly and collaboratively because when our forestry sector thrives, so do the people and communities behind it.”
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

“Forestry is the lifeblood of some 300 communities, workers, and First Nations across Canada, and the forest sector continues to face unjustified duties when exporting lumber to the U.S. We are working as Team Canada to support and retool our forest sector to protect jobs, strengthen competitiveness and resilience, and Buy Canadian to use more Canadian wood at home. Supporting our critical industries from coast to coast to coast is how we build Canada Strong.”
– The Honourable Tim Hodgson, Minister of Energy and Natural Resources

“Canada’s softwood lumber businesses are the literal builders of Canada, the backbone of Canada’s housing sector and a key driver of our economic growth. That’s why BDC is leaning further into its development role, working hand in hand with financial institutions and industry partners, to guarantee loans and letters of credit to help business navigate today’s trade-driven uncertainty. We know softwood lumber businesses will need many different types of support to overcome these challenges, and BDC is stepping up to do its part with financing options to help them restructure, reinvest and grow, allowing them to focus on what matters most: building Canada’s future.”
– Isabelle Hudon, President and CEO of BDC

About BDC: 80 years as Canada’s bank for entrepreneurs

BDC is a partner of choice for all entrepreneurs looking to access the financing and advice they need to build their businesses and tackle the big challenges of our time. Our investment arm, BDC Capital, offers a wide range of risk capital solutions to help grow the most innovative firms. BDC’s development role means we are in a state of perpetual evolution – wherever entrepreneurs go and whatever the Canadian economy needs – we will be there to help them defy the odds. 80 years later, that commitment remains very much alive. Our financing and investments in fiscal 2025 will add an estimated $25 billion to Canada’s GDP over the next five years. We are one of Canada’s Top 100 Employers and Canada’s Best Diversity Employers and the first financial institution in Canada to receive the B Corp certification in 2013. For more information on our products and services and to consult free tools, templates and articles, visit bdc.ca or join BDC on social media.

Media contact:

Phil Taylor
E-mail: phil.taylor@bdc.ca (preferred and fastest response time)

mediainfo@bdc.ca
1-844-625-8321

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.