National Defence: A Strategic Business Opportunity for Quebec Companies – and Financial Support from CAE Capital

A Major Shift in Government Priorities

Canada has formally committed to modernizing and strengthening its defence, technological innovation, and national security capabilities. Mark Carney intends to meet—and even exceed—the NATO target of 2% of GDP for defence spending. For the 2025–2026 fiscal year, this means more than $9 billion in direct investments starting this year, well ahead of the initial schedule. An ambitious target of 5% of GDP by 2035 already promises exponential growth in the sector.

This translates into billions of dollars in new calls for tenders, contracts, and procurement needs in the following sectors:

• Information technology, cybersecurity, and AI
• Military transport and logistics
• Advanced materials and precision manufacturing
• Medical, optical, and electronic equipment
• Eco-responsible and energy solutions

An Industry Open Even to Innovative SMEs

Contrary to popular belief, this market is not reserved for industry giants. Quebec SMEs have every opportunity to carve out their place. Through federal programs such as the Defence Capability Program and government supply chains, small businesses can secure contracts as direct suppliers or subcontractors.

Good news—according to federal minister Mélanie Joly, Ottawa wants Quebec to secure a large share of available contracts and grants. The Quebec government is also committed to supporting entrepreneurs in maximizing their access to these new markets.

Is Working in Defence Ethical?

Some companies hesitate, fearing incompatibility with their values. Yet the vast majority of contracts:

• Involve non-lethal applications (security, cybersecurity, engineering, research, transport, etc.);
• Strengthen infrastructure resilience;
• Provide humanitarian or civilian contributions (healthcare, logistics, climate, etc.).

Opting out does not stop the system—it simply leaves room for others, often from abroad.

CAE Capital: A Strategic Partner to Finance Your Defence-Related Projects

At CAE Capital, we understand that government orders, federal contracts, and industrial grants can create significant short-term liquidity needs. That’s why:
We finance purchase orders and ongoing contracts in the defence sector, ensuring you don’t miss the momentum of tenders or major project execution.
We can provide bridge financing backed by upcoming grants.
We support companies looking to position themselves within government supply chains, particularly in technological innovation.
We finance refundable tax credits, enabling companies to promptly develop innovations for defence projects.

Our mission is clear: to support the growth of local SMEs—including helping them take part in this unprecedented economic recovery.

One Last Chance Not to Miss the Turn

️ Quebec has the talent. It has the infrastructure. It has innovation. The only thing missing is the strategic will to claim its share of a transforming market. And that will, we can drive together.

Entrepreneurs, this market is yours too. Let’s talk.
Nathalie Dubord, Executive Director