The Globe and Mail reports in its Friday, Oct. 17, edition that Ottawa is launching its $700-million loan package for the struggling softwood industry as the U.S. trade tensions escalate. The Globe's Brent Jang writes that in August, Prime Minister Mark Carney announced plans to support the softwood sector. The Business Development Bank of Canada is now inviting applications from companies seeking assistance to weather the economic storm caused by U.S. import taxes on lumber. Each ownership group can qualify for up to $20-million in loan-guarantee assistance, mainly through accessing financing and letters of credit, said the BDC's Miguel Barrieras. The BDC aims to support small and medium-sized forestry operations by backing their financial agreements with existing lenders. "It's structured very favourably, both from a rate perspective and repayment structure perspective to allow liquidity being injected and allow them to operate," Mr. Barrieras said Thursday. Ottawa's $1.2-billion financial package includes the $700-million in loan guarantees to help Canadian lumber producers with operations and $500-million in grants and contributions in a bid to diversify markets and reduce dependence on the United States.