On April 24, 2026, the Business Development Bank of Canada (BDC) launched LIFT short for Lead with Innovation and Focus on Technology a $500-million program to help more than 1,000 Canadian SMBs adopt AI and advanced technology.
The numbers behind the announcement tell the real story. According to BDC's research, only 30% of Canadian SMBs used AI in 2025 yet those that did were 24% more productive than those that didn't. That gap is widening, and it's exactly the gap LIFT is designed to close.
What LIFT actually offers
LIFT combines two things that usually live in separate programs: advisory services and financing, both at preferential rates when the technology comes from Canadian suppliers.
There are two streams:
- Digital transformation and AI. For businesses with at least $1M in annual revenue, in virtually any industry. It funds data infrastructure, enterprise systems (ERP/CRM), AI technology and cybersecurity, with loans starting at $25,000. A plan built with BDC Advisory Services is mandatory financing then supports the implementation of that plan.
- Productivity and advanced equipment. For businesses with at least $5M in annual revenue in specific sectors (manufacturing, transport, wholesale, construction, agriculture, engineering, mining). It finances robotics, automation and advanced equipment, including installation and integration costs.
Two details worth underlining:
- Financing can cover implementation costs, not just the technology itself integration, installation, and related project costs can be included when tied to the investment.
- The "Buy Canadian" condition. Preferential rates apply when the solution comes from Canadian suppliers. Beyond the better rate, that often means your data stays under Canadian jurisdiction which matters if you're subject to Quebec's Law 25.
Let's be honest: it's a loan, not a grant
LIFT is financing money you pay back, on advantageous terms (preferential rates, and capital repayment postponement options in some cases). That's not a flaw; it's a feature that forces a useful question: will this project pay for itself? A loan only makes sense for a project with a measurable return. That discipline is healthy.
If your revenue is under $1M, or a loan isn't the right vehicle, other public programs exist CED's Regional AI Initiative (0%-interest repayable contributions), Québec's ESSOR streams for digital diagnostics and feasibility studies, or training subsidies for your team. The right program depends on your size, sector and project stage.
Why this is good news and why the timing matters
We rarely comment on government announcements, but this one deserves it. Canada is explicitly betting that its SMBs need to upgrade how they work to stay competitive in the global economy and it's backing that bet with capital, advisors, and an incentive to build with Canadian technology.
For SMB owners, this changes the calculation. The two most common reasons we hear for postponing an AI project are "we can't justify the upfront cost" and "we don't know where to start." LIFT addresses both at once: financing spreads the cost over time, and the mandatory advisory plan means nobody is expected to figure it out alone.
The window matters too. The productivity gap between AI adopters and non-adopters is already 24% and growing. Waiting two more years doesn't mean starting from the same place it means starting further behind, against competitors who used the financing you didn't.
A plan before money: we couldn't agree more
The most interesting design choice in LIFT is the mandatory plan. BDC won't finance an AI project without a roadmap built first readiness assessed, opportunities identified, investment scoped.
That's exactly how we believe AI adoption should work, and it's how we've always worked: a diagnostic before any build, a proof of concept before any deployment, and the honesty to say so when AI isn't the answer. If a problem can be solved without AI, we won't use AI.
This transition can feel daunting new vocabulary, vendors promising everything, real money at stake. It doesn't have to be. Start small: identify the two or three places where AI would have a measurable impact on your operations, validate them on your real data, and only then invest at scale with LIFT or otherwise.
If you're wondering whether your business is ready, or which funding fits your situation, that's a conversation we're happy to have. No obligation just a clear picture of where you stand.