Federal · Loan, not a grant · Continuous intake · 2026

The BDC LIFT program: who actually qualifies, and what it really costs

The 20-second answer

BDC LIFT is a loan, not a grant. Launched April 24, 2026 with a $500 million envelope, it lends $25,000 to $5,000,000 for digital, AI, and productivity-equipment projects across two tracks with hard revenue floors: $1M+ annual revenue for the Digital Transformation & AI track (mandatory BDC advisory) and $5M+ for the Productivity & Advanced Equipment track. Most borrowers land between $100K and $1M. Every dollar is repaid, so check the non-repayable programs you qualify for before you borrow.

Updated July 17, 2026. Every figure on this page is checked against our verified program catalog (BDC LIFT, catalog record 575, high confidence) or a named source in the Sources section.

Check your LIFT fit in 20 seconds ↓

Is LIFT right for you?

2 questions · instant answer

The two revenue floors rule out more businesses than any other criterion, so start there. Answers come straight from the program's published eligibility rules.

1. Your annual revenue
2. What you want to finance

Answer both questions to see which track fits, the realistic loan range, and what to do instead if you fall outside the floors.

The short answer

Liftable summaryBDC LIFT (Lead with Innovation and Focus on Technology) is a federal loan program from the Business Development Bank of Canada, launched April 24, 2026, that finances digital transformation, AI adoption, and productivity equipment for established SMEs. It lends $25,000 to $5,000,000 on flexible terms with principal postponement up to 12 months on the digital and AI path, 24 on equipment, requires $1 million or more in annual revenue at minimum, and is repayable in full.

Here's what you need to know about LIFT before anything else: it is financing, delivered through BDC's standard credit process, and every applicant who clears the revenue floor for their track and passes underwriting can access it. There is no competitive grant pool, no application window, and no deadline. That makes it far more predictable than most programs we track, and also means it deserves a colder cost-benefit read than "free money" ever would, because it is not free money.

What's actually in our catalog We track 456 active funding programs for Canadian businesses. Only 69 of them are loans of any kind; 247 are outright grants. Of the 185 active programs that fund digital adoption, digital transformation, or capital equipment, the same territory LIFT covers, 114 are non-repayable grants or tax credits, and the median published cap across those with one is $400,000. LIFT's distinctive offer is not the money itself; it is the size of the cheque ($5 million ceiling) and the certainty of credit-based approval.
The verdict

LIFT is the right tool for an SME past $1 million in revenue that needs a bigger cheque than grants will write, wants approval certainty instead of a competition, and can service debt from existing cash flow. If any of those three is not true, start with the non-repayable programs below instead.

What LIFT is, and what it is not

In one lineLIFT pairs a flexible-rate BDC loan with advisory services, mandatory on the AI track and optional on the equipment track, and replaced the closed BDC Data to AI Program in April 2026.

LIFT launched on April 24, 2026 with a $500 million multi-year envelope targeting more than 1,000 Canadian SMEs. It replaced the BDC Data to AI Program (launched December 2024, now closed) and broadened the scope in two directions: the digital track now covers data infrastructure, ERP and CRM systems, Canadian AI tools, and cybersecurity, and a second track finances automation, robotics, and machinery for larger firms.

Three things LIFT is not, because search results routinely blur them:

  • It is not a grant. Every dollar is repayable. The flexibility is real (principal postponement up to 12 months on the digital and AI path, 24 on equipment, terms negotiated to the project), but so is the debt.
  • It is not open to startups. The lowest revenue floor is $1 million per year. Pre-revenue and early-revenue businesses are explicitly ineligible.
  • It is not a competition. There is no scoring panel or intake round. BDC underwrites your credit like a bank, because it is one.
Confirmed (verified July 17, 2026)
  • $500M envelope, launched April 24, 2026, targeting 1,000+ SMEs
  • Loans $25,000 to $5,000,000; principal postponement up to 12 months on the digital and AI path, 24 on equipment
  • Revenue floors: $1M (Digital & AI track), $5M (Equipment track)
  • Advisory mandatory on the AI track, optional on the Equipment track
  • Continuous intake; committing to Canadian suppliers earns preferential rates
Not published by BDC
  • A target depletion date for the $500M envelope
  • A standard rate card; rates are quoted per file after underwriting
  • Approval-rate statistics for the program (BDC lending is credit-based, so most qualifying applicants who pass underwriting are approved, but no LIFT-specific figure exists)
Source: GrantCompass verified catalog, record 575 (last researched April 2026, high confidence); BDC LIFT program page, bdc.ca/en/solutions/lift.
Common question

Is BDC LIFT government funding?

Yes, in the sense that BDC is a federal Crown corporation, but the label misleads more than it helps. LIFT money arrives as a commercial-style loan underwritten against your revenue, profitability, and debt service coverage, not as a government contribution you keep. The federal character shows up in the terms rather than the repayment: flexible amortization, up to 12 months of interest-only payments on the digital and AI path, 24 on equipment, while your project ramps, and preferential rates if you source from Canadian technology and equipment suppliers. If what you actually want is government money you do not repay, that category exists too, and it is worth checking first. Our catalog tracks 247 active non-repayable grants, and the fastest way to see which ones fit your business is the eligibility map further down this page.

BDC AI funding: what LIFT pays for in an AI project

Quick answer: BDC's AI funding is the Digital Transformation and AI path of BDC LIFT: a loan of $25,000 to $2 million for businesses with at least $1 million in annual revenue, as of October 13, 2026. It pays to carry out the digital and AI plan you build with BDC Advisory Services, and it is repaid in full.
$2Mlargest loan on the AI path; the smallest is $25,000
1 yearlongest pause on principal payments (12 months)
6 yearslongest time to repay, pause included
$1Mminimum annual revenue

There is no separate BDC AI loan program today: an AI project is financed through this path. Here is what BDC lists as financeable on it, and what falls outside.

  • AI use casesCoveredDeveloping and putting in place the AI applications in your plan.
  • Data infrastructureCoveredIncluding secure data platforms.
  • ERP and CRM systemsCoveredAnd their configuration.
  • CybersecurityCoveredTools, readiness work and audits.
  • Training and integrationCoveredBDC calls these adoption costs.
  • Robots and machineryNot on this pathLIFT's equipment path, from $5 million in revenue. Compare the two tracks.
  • Non-Canadian suppliersNot on this pathBDC says you must work with qualified Canadian suppliers.
  • A project with no planNot on this pathA BDC Advisory Services Digital Plan is mandatory.
Source: BDC, "Digital transformation and AI" and LIFT pages, bdc.ca/en/solutions/lift. Read October 13, 2026.

BDC also names a few industry exceptions: suppliers of premises, hotels, and trucking companies with fewer than 10 vehicles. The earlier BDC Data to AI Program is closed and LIFT took its place: the FAQ has the dates. To see what this loan would cost each month, run your own numbers.

The two tracks, and their very different floors

Liftable summaryLIFT's Digital Transformation & AI track requires $1 million or more in annual revenue and a mandatory BDC advisory engagement; the Productivity & Advanced Equipment track requires $5 million or more in revenue, restricts eligibility to seven sectors, and makes advisory optional.

Track 1

Digital Transformation & AI

$1M+

minimum annual revenue

  • Funds data infrastructure, ERP/CRM, Canadian AI tools, cybersecurity
  • Mandatory BDC Advisory Services plan, financed within the loan
  • Typical software/AI loans land in the $50K to $500K range
  • Open to any industry
Track 2

Productivity & Advanced Equipment

$5M+

minimum annual revenue

  • Funds automation, robotics, machinery, operational equipment
  • Advisory support is optional
  • Typical equipment loans run $350K to $5M
  • Restricted to seven sectors: manufacturing; transport and warehousing; wholesale; construction; agriculture, forestry, fishing and hunting; architectural and engineering services; mining, quarrying, oil and gas
The verdict

If your revenue sits between $1 million and $5 million and your project has any meaningful digital or AI component, route it through the Digital Transformation & AI track. Its $1 million floor is far more accessible, and the mandatory advisory engagement often unlocks better terms because BDC has already de-risked the project by the time it reaches underwriting.

How BDC routes your application between tracks

You do not formally choose a track on day one. The online request form asks for your project type, estimated investment, and revenue band, and BDC routes the file. That routing matters more than it looks: the AI track carries the mandatory advisory engagement (an additional 15 to 30 percent of project budget, financed within the loan), while the Equipment track skips it for firms that want a pure financing transaction.

The practical implication for a $1M-to-$5M-revenue business with a mixed project, say a robotic cell plus the software that drives it, is that the digital and data components of the project are what get you in the door. Frame the project around its digital core, and treat the hardware as the implementation of the digital plan rather than the headline. Businesses over $5 million in revenue can compare both tracks on the merits and pick based on whether they want the advisory support.

One more routing detail worth knowing: BDC's evaluation criteria explicitly include the clarity of your productivity hypothesis. "This AI tool will cut order-processing time 40 percent" or "this robotic cell lets us run a third shift without hiring" is the shape of statement underwriters look for. A project described only as "modernization" reads as unscoped risk.

Does BDC have a loan for technology upgrades and modernization? The requirements

Quick answer: Yes. The Business Development Bank of Canada (BDC) does offer a special funding program for technology upgrades and modernization: BDC LIFT, a loan with consulting attached. As of October 13, 2026, the requirements to qualify start with annual revenue of at least $1 million for digital and AI projects, or $5 million for digitally enabled equipment.
  • Digital and AI path$25,000 to $2 millionAnnual revenue of at least $1 million.Principal can pause for up to 12 months.
  • Equipment path$350,000 to $5 millionAnnual revenue of at least $5 million.Principal can pause for up to 2 years.

Four requirements decide whether BDC can help with your technology upgrade. Start with the one that is fastest to check.

1. Annual revenue$1 million or $5 million, by project
At least $1 million for a digital, data, AI or cybersecurity project. At least $5 million for equipment and automation. How the two tracks differ.
2. Financial healthProfitable, with solid credit
On the digital and AI path BDC asks for demonstrated profitability, a strong financial foundation and a solid credit history. On the equipment path you must show the financial capacity to support the investment. The three LIFT pages we read list no minimum time in business.
3. The project and its planA plan comes before the money
Digital and AI projects need a completed BDC Advisory Services Digital Plan. Equipment projects need an up-to-date productivity plan, and the business must be in one of the seven sectors listed under the two tracks.
4. CanadaCanadian business, Canadian suppliers
Both paths are for Canadian-based businesses. BDC says digital and AI projects must use qualified Canadian suppliers. On equipment, a qualified Canadian supplier or integrator is what earns the preferential rate.

Miss one of the four? BDC points businesses that do not fit LIFT to its other loans, such as the BDC Equipment Loan. Our BDC financing guide covers the requirements for a BDC loan in general.

Source: BDC LIFT pages (program, digital and AI path, equipment path), bdc.ca/en/solutions/lift. Read October 13, 2026.

How much you can borrow, and what it actually costs

Liftable summaryLIFT's published range is $25,000 to $5,000,000, but most borrowers land between $100,000 and $1,000,000; AI-track borrowers should budget an extra 15 to 30 percent of project cost for the mandatory advisory engagement, financed within the loan.

The $5 million ceiling gets the headlines, and like most program ceilings it is not where most files land. Based on our catalog's verified research on realistic amounts:

Project typeTypical loan rangeNotes
Software / AI only$50K to $500KAI track; advisory engagement mandatory
Mixed digital + hardware$100K to $1MThe band most LIFT borrowers land in
Physical equipment$350K to $5MEquipment track; $5M+ revenue required

Four cost mechanics that change the real price of a LIFT loan:

  • The advisory premium. On the AI track, add 15 to 30 percent to your project budget for the mandatory BDC Advisory Services engagement. It is financed within the loan rather than billed upfront, which is convenient and also means you pay interest on it.
  • Principal postponement. You can defer principal for up to 12 months on the Digital Transformation & AI track, or up to 24 months on the Equipment track, and pay interest only while the project ramps. That aligns repayment with the productivity gain the project is supposed to deliver, and it extends the total interest paid.
  • The Canadian-supplier discount. Committing to Canadian technology and equipment suppliers qualifies you for preferential rates. Over a five-to-seven-year amortization, that discount is meaningful, so build your supplier list before the credit application, not after.
  • Timing. Expect two to six weeks from initial request to disbursement. Loans over $1 million can take longer through underwriting.
Common question

What interest rate does BDC LIFT charge?

BDC does not publish a LIFT rate card, and any page quoting you a specific LIFT rate is guessing. Rates are set per file after underwriting, based on your credit strength, the loan size, the term, and whether you qualify for the Canadian-supplier preferential rate. What is confirmed: the loan is flexible-rate, principal postponement up to 12 months on the digital and AI path, 24 on equipment is available, and interest is deductible as a business expense while the principal is not taxable income. If a precise cost of capital matters to your decision, get the term sheet before committing to the project plan, and ask your BDC advisor to model the LIFT loan against any existing BDC term debt you carry, since restructuring older loans into the LIFT envelope can sometimes reduce blended cost of capital.

What would a BDC LIFT loan cost you each month?

Quick answer: A BDC LIFT loan of $250,000 repaid over 5 years at an example rate of 8% starts at about $5,833 a month and ends near $4,194, with about $50,833 of interest in total. That is an estimate on equal principal payments as of October 13, 2026; BDC sets the actual rate and schedule for each borrower.
$50,833Total interest over the term: the price of the loan.
$5,833First monthly payment, the highest.
$4,194Last monthly payment.
$1,667One interest-only month, while principal is paused.

Before you take on that much interest, see what you would not have to repay. Check the grants and tax credits for your project →

How the estimate works. Each month repays the same slice of principal plus interest on what is still owed, so the payment falls over time. A pause on principal, up to 12 months on the digital and AI path and up to 2 years on equipment, adds interest-only months on top of the total above.

The same $250,000 at the example 8%, by years to repay. A longer term lowers the payment and raises the interest:

  • Repaid over 3 years$30,833
  • Repaid over 5 years$50,833
  • Over 6 years, the longest on the AI path$60,833

About the rate. We did not find an interest rate on the three LIFT pages we read on bdc.ca on October 13, 2026. BDC describes preferential rates when Canadian suppliers provide the technology, and BetaKit reported at launch that those borrowers could get 2.25%. Type the rate from your own offer.

Comparing BDC with a bank loan? The BDC and CSBFP loan comparison has a first-year cost calculator for that pair.

Sources: BDC LIFT path pages, bdc.ca; BetaKit, "BDC's new $500-million loan program". Read October 13, 2026.

LIFT vs other BDC financing: pick the right product

Liftable summaryBDC runs 13 active products in our catalog; LIFT is the right one for digital, AI, and productivity-equipment projects at $1M+ revenue, while Start-up Financing serves younger businesses, the Small Business Loan covers general needs to $350,000, and Pivot to Grow serves tariff-impacted firms.

Searchers who land on "BDC LIFT" are often actually shopping the whole BDC shelf. Here is how LIFT sits against its verified siblings, so you do not spend weeks in the wrong queue:

ProductAmountBest forKey gate
BDC LIFT$25K to $5MDigital, AI, or productivity-equipment projects$1M+ revenue (AI track) or $5M+ (Equipment track)
BDC Start-up FinancingUp to $150KYounger businesses that LIFT's floors exclude12+ consecutive months of operation
BDC Small Business LoanUp to $350KGeneral business needs without the project framing24+ consecutive months generating revenue
BDC Equipment LoanUp to 125% of equipment priceEquipment purchases below LIFT's $5M-revenue Equipment trackStandard BDC credit assessment
BDC Pivot to Grow$100K to $5MTariff- or trade-disruption-impacted businesses pivoting operationsDemonstrated tariff/trade impact; growth stage
BDC Growth & Transition CapitalStructured deal-by-dealAcquisitions, ownership transitions, growth capital beyond term debtEstablished, rapidly growing business
Source: GrantCompass verified catalog, records 575 (LIFT), 329 (Start-up Financing), 328 (Small Business Loan), 769 (Equipment Loan), 141 (Pivot to Grow), 770 (Growth & Transition Capital). All six active as of July 17, 2026.
If this is you

You run a $2M-revenue services firm and want an AI workflow overhaul

You are the textbook LIFT AI-track borrower: past the $1 million floor, project squarely in the eligible categories, loan likely in the $50K to $500K band. Your two decisions are whether the mandatory advisory engagement (an extra 15 to 30 percent, financed) is a feature or a tax for you, and whether a Canadian-supplier commitment is realistic, because it changes your rate. First-time AI adopters who want a guided path tend to get the most from the advisory model.

If this is you

You run a $3M-revenue manufacturer and need a robotic cell, not software

You fall in LIFT's awkward gap: over the AI track's floor but under the Equipment track's $5 million bar, with a project that is mostly hardware. Three honest options: frame the digital layer of the automation (controls, integration, data) as the core and route through the AI track; use the BDC Equipment Loan, which finances up to 125 percent of equipment price with no LIFT-style revenue floor; or check your province's productivity grants before borrowing at all, since several stack with BDC financing.

If this is you

Your revenue is under $1M and every LIFT page keeps wasting your time

Stop reading LIFT guides; the floor is hard and BDC's own rejection reasons list it first. Your realistic BDC entry point is Start-up Financing (up to $150,000 once you have 12 months of revenue). Better yet, at your size the non-repayable layer is unusually generous: NRC IRAP funds R&D payroll with a $75,000 median actual award, and the SR&ED credit refunds up to 35 percent of eligible R&D spend for CCPCs. Run the eligibility map below to see the full non-repayable list for your profile.

LIFT or BDC's tariff loan: which one is yours?

Quick answer: BDC's tariff loan is the Pivot to Grow Program: up to $5 million for Canadian businesses hurt by US tariffs, available until March 31, 2028 or until its funding is used, as BDC stated on October 13, 2026. Choose it when tariffs are the reason you are borrowing. Choose BDC LIFT when the reason is technology.
  • BDC LIFTTechnology is the reasonLoan: $25,000 to $2 million for digital and AI, $350,000 to $5 million for equipment.Revenue: at least $1 million, or $5 million for equipment.Its own test: a BDC Digital Plan or a productivity plan.
  • BDC Pivot to GrowTariffs are the reasonLoan: up to $5 million in each of its streams.Revenue: $1 million or more, 3 years in business, historically positive cash flow.Its own test: 15% of sales from exports to the US, or revenue down or costs up at least 10% because of US tariffs.

The longest time each loan gives you to repay, in years:

  • LIFT, digital and AI6 years
  • LIFT, equipment12 years
  • Pivot to Grow, pivot loan7 years
  • Pivot to Grow, equipment14 years

Financing export-related technology upgrades can fit either one. Pivot to Grow has an equipment stream for tariff-affected exporters, and it asks for a resilience plan. LIFT finances the technology whether or not you export.

Both are BDC loans, so the cost works the same way: estimate your monthly payment before you pick.

Sources: BDC, Pivot to Grow Program, bdc.ca/en/financing/pivot-grow-loan (84 and 168 months); BDC LIFT path pages. Read October 13, 2026.

Before you borrow: check the money you never repay

Liftable summaryOf the 185 active Canadian programs funding digital adoption or capital equipment, 114 are non-repayable grants or tax credits with a median published cap of $400,000; the correct order of operations is grants and credits first, then debt for the remainder.

This is the section most LIFT coverage skips, and it is the one that saves you real money. LIFT competes for the same project budget as a thick layer of non-repayable programs, and nothing about taking a loan first improves your grant eligibility later. The disciplined sequence is:

  1. Claim the entitlements. If your project involves genuine technological uncertainty, SR&ED refunds up to 35 percent of eligible R&D spend for CCPCs on the first $6 million of expenditures. It is a statutory credit, not a competition.
  2. Apply for the grants. NRC IRAP covers up to 80 percent of eligible technical salaries on approved R&D projects, median actual award $75,000, non-repayable. Provincial productivity and digital-adoption grants add another layer depending on where you operate.
  3. Finance the remainder. Whatever the grants and credits do not cover is what LIFT (or an equipment loan) should finance. A $600K project with $150K of grant support and a $2.1M-max SR&ED claim behind it needs a much smaller loan, and services the debt more comfortably.
The verdict

The best first move for almost every business reading a LIFT guide is a 60-second eligibility check against the non-repayable list, because 114 active grants and tax credits fund the same digital and equipment territory LIFT does, and the median program cap of $400,000 covers a meaningful share of most SME projects before any debt is needed.

Common question

Should I take a BDC LIFT loan or apply for grants?

Do both, in the right order, because they solve different problems. Grants and tax credits are cheaper than any loan (they cost application effort, not interest) but they are capped, competitive in some cases, and slower: IRAP reimburses monthly as the project runs, and SR&ED pays after your fiscal year-end. LIFT is more expensive (it is debt) but delivers a large lump sum in two to six weeks with approval certainty for credit-worthy applicants. The businesses that get this wrong usually err in one direction: they borrow the full project cost because the loan was easy, and leave five- and six-figure non-repayable support unclaimed. Map your grant and credit eligibility first, size the loan to the gap, and let the loan's principal-postponement window bridge the reimbursement lag on the grant side.

Does BDC give grants? No: where the grant money for the same project is

Quick answer: No. BDC is a lender, and BDC LIFT is a loan, so there is no LIFT grant: every BDC program in our catalogue on October 13, 2026 is a loan or an investment. BDC grants do not exist, but the grant money for an AI, equipment or export project does. It comes from other federal and provincial programs.

Pick the kind of project. Each tab shows three grants or refundable tax credits, none of it repaid, with where it applies and the published maximum.

AI and software projects

  • Industrial AI Readiness ProgramCanada-wideUp to $15,000For manufacturers with fewer than 500 employees. Repays fees for an AI readiness evaluation and plan.
  • OCI Digitalization Competence CentreOntarioUp to $15,000 for the planHalf the cost of a digital modernization plan, first come, first served.
  • ESSOR Component 1CQuebecUp to $50,000Toward putting a digital transformation project in place. Deadline listed: March 31, 2027.

Equipment and automation: refundable tax credits

Export projects

Source: GrantCompass public catalogue. Each program was open as of October 13, 2026 in that catalogue, and the amounts are published maximums. Confirm on the program's own page before you apply.

Nine programs is a sample. Your own list depends on your province, industry and size. See every program your business qualifies for →

Stacking LIFT with grants and tax credits

Liftable summaryLIFT is financing rather than government assistance, so it stacks with SR&ED on the same expenditures, with provincial productivity grants, and with the Accelerated Investment Incentive, and the advisory portion does not consume grant matching room.

Because LIFT is a loan, it avoids the assistance-reduction rules that make grant-on-grant stacking complicated. Four verified combinations:

Stack withHow it combines
SR&ED tax creditAI and data work that qualifies as SR&ED can claim the credit on the same eligible expenditures the loan finances. Loan financing does not reduce SR&ED eligible costs the way grant assistance does. Coordinate with a SR&ED-experienced accountant.
Provincial productivity grantsA provincial grant covers a percentage of capital cost; LIFT finances the rest. Confirm each program's stacking caps individually, since limits are set by the granting side, not by BDC.
Accelerated Investment IncentiveEquipment financed through LIFT keeps its full cost for capital cost allowance, so manufacturing machinery can be deducted in full in its first year, and most other equipment acquired from September 15, 2026 would be too under the proposed Productivity Mega Deduction. It runs independently of the loan.
NRC IRAPIRAP funds the R&D phase of a technology project; LIFT finances the build and deployment phase. Sequencing them turns one project into two funded stages.
Source: GrantCompass verified catalog, record 575, stacking-partner research; CRA SR&ED program rules on government assistance vs financing.

One nuance worth repeating from the record: the advisory portion of LIFT does not consume grant matching room. If a provincial grant requires you to fund 50 percent of a project yourself, the BDC-financed advisory engagement still counts on your side of that ledger, because it is your debt, not government assistance.

How to apply, step by step

Liftable summaryLIFT applications run through BDC's online portal on continuous intake: submit a request, take a free advisor consultation within about a week, then move through credit underwriting to a term sheet, with two to six weeks from request to disbursement for most files.

  1. Submit the online financing request. Start from BDC's LIFT page and enter your project type, estimated investment, and revenue band. BDC routes you to the AI track or the Equipment track from these inputs.
  2. Take the initial consultation. BDC contacts you, typically within 2 to 5 business days, for a free scoping call. The advisor confirms track eligibility and outlines the advisory engagement if your file is on the AI track.
  3. Prepare the credit application. You will need 2 to 3 years of financial statements, a project plan, cash flow projections that include loan service, and your intended list of Canadian technology or equipment suppliers, which determines preferential-rate eligibility.
  4. Go through underwriting. BDC assesses revenue, profitability, debt service coverage, and project viability. Files under $500,000 tend to move faster; larger loans get deeper review.
  5. Review the term sheet. It specifies amount, rate, repayment schedule, the principal-postponement window, and covenants. AI-track applicants finalize the advisory scoping document in parallel. This is the moment to compare the real cost against your grant-first plan.
  6. Sign and receive funds. Disbursement is lump-sum or milestone-based by project size. If you elected postponement, payments are interest-only for up to 12 months on the digital and AI path, 24 on equipment.
  7. Implement and report. Execute alongside the BDC advisor on the AI track, submit periodic financial statements per covenants, and flag issues early to keep preferential rates. Advisory deliverables typically conclude within 12 to 18 months of loan close.

Applications go through BDC's portal at bdc.ca (see Sources); you can also reach BDC at 1-877-232-2269.

Why LIFT applications get rejected

Liftable summaryThe most common LIFT rejection reasons are revenue below the track floor, insufficient cash flow to service the loan, no specific productivity hypothesis, refusal of the mandatory AI-track advisory plan, and unresolved delinquency on prior BDC loans.

These come from the program's own documented rejection patterns, and each one is avoidable before you apply:

  • Below the revenue floor. $1 million for the AI track, $5 million for the Equipment track. There is no exception process; apply to a different product instead.
  • Cash flow that cannot carry the loan. BDC underwrites debt service coverage like any lender. If the loan only works in your best-case projection, expect a decline or a smaller offer.
  • No productivity hypothesis. "We want to modernize" fails; "this ERP consolidation cuts order-processing time 40 percent" passes. Underwriters need a specific, testable claim tying the technology to a business outcome.
  • Refusing the AI-track advisory plan. It is mandatory, and unwillingness to commit to it is a listed rejection reason. If the engagement genuinely does not fit you, the Equipment track (at $5M+ revenue) or a different BDC product is the honest route.
  • Prior BDC delinquency. Unresolved arrears on existing BDC loans block new financing until cleared.
  • All-foreign supplier lists. As of October 13, 2026, BDC says the Digital Transformation & AI track requires qualified Canadian suppliers, and on the Equipment track a Canadian supplier or integrator is what earns the preferential rate.
The verdict

The single highest-leverage preparation for a LIFT application is writing the productivity hypothesis as one measurable sentence and building the cash flow projection around it, because those two artifacts answer the two questions underwriting actually asks: will this project work, and can this business repay us if it does not.

FAQ

Is BDC LIFT a grant or a loan?
BDC LIFT is a loan, not a grant. Every dollar is repayable, with flexible terms and the option to postpone principal payments for up to 12 months on the digital and AI path, 24 on equipment. Some pages describe LIFT loosely as government funding, which is true but misleading: it is subsidized financing from a Crown corporation, and it should be compared against grants and tax credits, which do not require repayment, before you commit.
Can I apply if my revenue is under $1 million?
No. The Digital Transformation & AI track requires at least $1 million in annual revenue, and the Productivity & Advanced Equipment track requires at least $5 million. Below the $1 million floor, look at BDC Start-up Financing, up to $150,000 for businesses with 12 or more months of operation, or at non-repayable options like NRC IRAP before taking on debt.
How much can I actually borrow?
The published range is $25,000 to $5,000,000, but most businesses land between $100,000 and $1,000,000 depending on revenue and project scope. Software and AI projects typically fall in the $50,000 to $500,000 range; physical-equipment projects typically run $350,000 to $5,000,000. On the AI track, plan an extra 15 to 30 percent of project budget for the mandatory advisory engagement.
Do I pay for the advisory services separately?
No. Advisory services are mandatory on the AI track but are financed within the loan rather than billed separately upfront. Budget an additional 15 to 30 percent on top of your project cost to cover the engagement.
Can LIFT be combined with SR&ED?
Yes. AI and data project work that qualifies as scientific research and experimental development can claim the SR&ED credit on the same eligible expenditures the LIFT loan finances, because loan financing does not reduce SR&ED eligible costs the way grant assistance does. Coordinate with a SR&ED-experienced accountant. LIFT also stacks with provincial productivity grants and with the federal first-year write-offs, including the proposed Productivity Mega Deduction.
Is there a deadline to apply?
No. LIFT runs on continuous intake with no application window; you apply anytime through BDC's online portal. The $500 million envelope is multi-year and BDC has not published a target depletion date, so there is no verified urgency argument for rushing an application.
Why do applications get rejected?
The most common reasons: revenue below the track floor ($1 million for the AI track, $5 million for the Equipment track), insufficient cash flow to service the loan, no clear productivity hypothesis tied to the technology investment, an AI-track applicant unwilling to commit to the mandatory advisory plan, or unresolved delinquency on prior BDC loans. As of October 13, 2026, BDC's LIFT pages answer yes when asked whether you need Canadian suppliers to qualify, and tie the preferential rate to them.
What happened to the BDC Data to AI Program?
The BDC Data to AI Program, launched in December 2024, is closed. BDC LIFT, launched April 24, 2026 with a $500 million envelope, replaced it and broadened the scope from data and AI projects to include productivity and advanced-equipment financing on a second track.

Programme LIFT de BDC : résumé en français

En bref : Le programme LIFT de BDC (Levier d'innovation et focus sur la technologie) est un prêt, pas une subvention : chaque dollar est remboursé. En date du 13 octobre 2026, il compte deux volets, décrits ci-dessous, et BDC offre un taux préférentiel lorsque les solutions proviennent de fournisseurs canadiens.
25 000 $ à 2 M$Transformation numérique et IA : entreprises canadiennes ayant au moins 1 M$ de revenus annuels. Un plan numérique de BDC Services-conseils est obligatoire.
350 000 $ à 5 M$Productivité et équipement à composante numérique : entreprises ayant au moins 5 M$ de revenus, dans sept secteurs. Un plan de productivité à jour est exigé.

Voir la page LIFT de BDC en français. Le reste de ce guide est en anglais.

Source : BDC, bdc.ca/fr/solutions/lift et pages des deux volets. Lu le 13 octobre 2026.

Sources and official references

  1. BDC LIFT program page, Business Development Bank of Canada
  2. BDC LIFT online application portal (digital and AI advisory), Business Development Bank of Canada
  3. Industrial Research Assistance Program (IRAP), National Research Council Canada
  4. SR&ED Tax Incentive Program, Canada Revenue Agency

Program figures on this page reflect GrantCompass catalog research last verified against the official sources above in April 2026 (record 575, high confidence) and re-checked for status on July 17, 2026. BDC terms are set per file; always confirm current details on the official BDC pages before committing to a project plan.

Canada · Business funding · 2026

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