Budget Proposes EDC, BDC Merger

Budget 2026 proposes fusing Export Development Canada and the Business Development Bank of Canada into one federal development bank.

Updated on Nov. 10, 2026 in Economic Indicators

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Should the federal government merge Crown corporations to reduce overlap?

Budget 2026 proposed merging Export Development Canada and the Business Development Bank of Canada into a single federal development bank. The proposal comes from a review of Crown corporations operating in federal financing aimed at reducing overlap.

Why it matters

The merger would reshape federal support for Canadian exporters and small and medium-sized businesses across the country. Government has not yet confirmed when the merger will take place.

EDC reported 2,200 employees and BDC reported 2,924 full-time employees in their 2025 annual reports, while Canada has more than 40 Crown corporations. The government has not confirmed when the merger will take place or how staffing will be affected.

The players

Export Development Canada (EDC)

EDC is a federal Crown corporation that provides insurance, financial guarantees, investments and loans to help Canadian companies expand into international markets.

Business Development Bank of Canada (BDC)

BDC is a federal Crown corporation that supports small- and medium-sized businesses through financing and advice.

Mark Carney

Mark Carney is the Prime Minister of Canada, and Budget 2026 is his second budget.

The details

The proposed merger would fuse EDC, which provides insurance, guarantees, investments and loans to help companies expand internationally, with BDC, which supports small and medium-sized businesses through financing and advice. EDC is headquartered in downtown Ottawa and BDC in Montreal.

Budget 2026 proposed the merger.
The 2025 annual reports reported the employee counts cited.
Article on the merger and job-loss uncertainty was published November 9, 2026.

Market Landscape

The proposal is an outcome of the comprehensive review mandate of Crown corporations operating in federal financing, which set out to reduce overlap across these bodies. Budget 2026 says changes to other Crown corporations will make better use of federal assets and expertise.

Exporters and small businesses that rely on EDC or BDC financing or advice may see changes to how those services are delivered once the merger takes place. Government has not yet confirmed when the merger will occur or how services will be affected.

The takeaway

Businesses that use EDC or BDC services should watch for official government announcements on the timing and structure of the merger. Changes to service delivery may follow once the transition is underway.