The federal Crown corporation will spend $3.5 billion to finance and advise Canadian businesses involved in national projects focused on sovereignty. The bank, the country’s largest venture investor, will invest another $500 million directly into startups through two new BDC funds, and indirectly by backing other defence-focused funds. (The Logic)

Talking point: The money builds on the $1 billion capital injection from November’s federal budget, which BDC is to spend on defence financing. CEO Isabelle Hudon told The Logic that this summer, BDC loosened restrictions it had in place on investing in defence companies, putting it in step with the government’s ambitions to grow the country’s defence sector. “Reading the previous version of our eligibility criteria, it felt that we were closed for business for that sector,” said Hudon. As The Logic first reported, the bank sent a letter to investors in its network on Monday offering to remove restrictions in existing BDC funding agreements that may prohibit them from investing in companies that make and sell military equipment, including weapons.