The British Columbia government has introduced legislation to create a $400-million fund aimed at directly investing in high-impact private-sector projects.

The money for the fund is allocated in the recently announced 2026 provincial budget, which requires legislative approval.

If the proposed legislation is passed, the province will form the B.C. Strategic Investment Fund in the form of new financial tools — including loans, equity investments and repayable contributions — that would allow taxpayers to share in the success of supported projects. The move is designed to help B.C. compete nationally, attract federal and private-sector investment, and advance priority sectors as it seeks to reduce reliance on the United States for trade.

“As the federal government looks for projects to boost forestry, defence and shipbuilding, our goal is to make British Columbia businesses are at the front of the line,” said Premier David Eby. “By incentivizing large private-sector projects and participating in the upside, we can make sure people in our province are benefiting through high-paying jobs and revenue for stronger services.”

Currently, the province’s support for private-sector companies is largely limited to grants, offering little to no direct revenue return. Other jurisdictions — including Ontario, Quebec, and the governments of Canada and the U.S. — have broader tools at their disposal, such as taking equity stakes, issuing loans, signing profit-sharing agreements and providing conditionally repayable grants, said the B.C. government.

The proposed fund would allow British Columbians to share in the upside of provincially backed projects.

“People and communities across B.C. are at the heart of everything we do to grow our economy,” said Ravi Kahlon, minister of jobs and economic growth. “With new financial tools, and through our Look West strategy, we can support high-impact private-sector projects, attract federal investment, and advance B.C.’s priority sectors, creating good jobs and protecting the critical services people depend on every day.”

The Strategic Investment Fund is intended to co-invest in projects positioned to secure up to $20 billion in federal defence spending under Canada’s new Defence Industrial Strategy, as well as critical-mineral developments and other major economic initiatives. It is also a key component of the province’s Look West strategy, which targets $200 billion in new private-sector investment.

“B.C. companies offer world-class, dual-use abilities that can support Canada’s military commitments,” said Darlene Rotchford, parliamentary secretary for armed forces development and veterans affairs. “This new toolkit complements existing supports for businesses, while building new opportunities to create more good, highly skilled jobs here in British Columbia.”

The fund would complement existing programs such as the B.C. Manufacturing Jobs Fund, which has committed $153 million to 154 projects. The program has leveraged $1 billion in investment and created or protected more than 4,800 jobs.

During construction and early operations, those projects are expected to generate $17 billion in new economic activity, nearly $7 billion in provincial GDP and $714 million in provincial revenue.

Industry groups welcomed the proposed fund.

“We welcome the province’s commitment to advancing major infrastructure, and strengthening B.C.’s trade and economic capacity,” said Jen Riley, president and CEO of the BC Chamber of Commerce. “Through our chamber network, we see both the opportunity these projects create provincially and their direct impact on local communities. For communities to succeed beyond the lifecycle of a single project, housing, transportation and economic capacity must be planned with long-term resilience in mind.”

Alex Rueben, executive-director of the Association of British Columbia Marine Industries said investments made through the proposed fund would build on the province’s rapidly growing and capable marine and defence sectors by driving innovation and creating jobs for B.C. workers. The proposed fund would also strengthen local supply chains and increasing exports, he added.

“British Columbia is the epicentre of Canadian biotechnology and home to world-class innovation that is directly relevant to national defence and resilience,” said Carl Hansen, founder and CEO of AbCellera. “This $400-million fund sends a bold signal that B.C. is ready to play a leading role in advancing dual-use technologies and building industries of national strategic importance.”

Wendy Hurlburt, president and CEO of Life Sciences BC, said her industry would receive a “tremendous opportunity” through the proposed fund.

“This new fund provides our companies with opportunities to leverage federal programs and global capital,” she said. “In an increasingly competitive environment nationally and globally, this kind of strategic partnership will support B.C. companies across their stages of growth, and enable local discoveries to be developed and manufactured here at home.”

But Gavin Dew, the B.C. Conservative Party’s jobs, economic development and innovation critic, slammed the proposed fund during Question Period contending that it added to “nine years of NDP economic mismanagement.” He also criticized the government failing to provide opportunities for all B.C. companies to build and grow.

However, the Conservatives lack the power to block the expenditure from occurring. Given that Eby’s NDP government holds a slim majority, the proposed fund is expected to become a reality in the relatively near future.

Pictured: B.C. Premier David Eby speaking a news conference in Victoria, B.C., where the provincial government unveiled the Strategic Investment Fund.

Photo: Instagram/Government of B.C.