Updated July 2026 · Verified against Business Development Bank of Canada (BDC) guidelines
✨ New Program ✓ First-Timer Friendly Loan Est. 2026
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BDC LIFT — Lead with Innovation and Focus on Technology

Business Development Bank of Canada (BDC)
Loan Range
Digital Transformation & AI track: loans $25,000 to $2,000,000...
Continuous intake — apply anytime
Visit Official Program →
Difficulty
Moderate
Payment
Loan
Trend
New Program
First-Timers
Friendly ✓
Financing share
100%
BDC LIFT — Lead with Innovation and Focus on Technology provides up to Digital Transformation & AI track: loans $25,000 to $2,000,000 (capital payments postponable up to 12 months; amortization up to 6 years). Productivity & Advanced Equipment track: loans $350,000 to $5,000,000 (initial capital payments postponable up to 2 years; amortization up to 12 years). No single track offers $25,000 to $5,000,000. Launched April 24, 2026 with a $500M envelope targeting 1,000+ Canadian SMEs, LIFT pairs BDC loans with advisory services across two pathways: Digital Transformation & AI (data infrastructure, ERP/CRM, Canadian AI tools, cybersecurity — minimum $1M annual revenue, demonstrated profitability, and a mandatory completed BDC Advisory Services Digital Plan; loans $25,000 to $2,000,000, capital payments postponable up to 12 months, amortization up to 6 years) and Productivity & Advanced Equipment (automation, robotics, machinery — minimum $5M annual revenue, BDC advisory support optional but an up-to-date productivity plan mandatory; loans $350,000 to $5,000,000, initial capital payments postponable up to 2 years, amortization up to 12 years). Applications are accepted on an ongoing basis.
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Eligibility & Details

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Program Description

Launched April 24, 2026 with a $500M envelope targeting 1,000+ Canadian SMEs, LIFT pairs BDC loans with advisory services across two pathways: Digital Transformation & AI (data infrastructure, ERP/CRM, Canadian AI tools, cybersecurity — minimum $1M annual revenue, demonstrated profitability, and a mandatory completed BDC Advisory Services Digital Plan; loans $25,000 to $2,000,000, capital payments postponable up to 12 months, amortization up to 6 years) and Productivity & Advanced Equipment (automation, robotics, machinery — minimum $5M annual revenue, BDC advisory support optional but an up-to-date productivity plan mandatory; loans $350,000 to $5,000,000, initial capital payments postponable up to 2 years, amortization up to 12 years). Both tracks require you to work with qualified Canadian technology, AI, digital, integration or equipment suppliers. Replaces the BDC Data to AI Program (December 2024 launch, see catalog ID 473).

Eligibility Requirements

  • Canadian-based business with operations in Canada
  • Digital Transformation & AI track: minimum $1M annual revenue, and completion of a BDC Advisory Services Digital Plan is mandatory
  • Eligibility includes demonstrated profitability, a strong financial foundation and a solid credit history
  • Productivity & Advanced Equipment track: minimum $5M annual revenue; BDC advisory support is optional but an up-to-date productivity plan is mandatory
  • Equipment track sectors: Manufacturing, Transport and warehousing, Wholesale, Construction, Agriculture/forestry/fishing/hunting, Architectural/engineering services, Mining/quarrying/oil and gas
  • AI track investment must be focused on digital, data, AI or cybersecurity
  • Must work with qualified Canadian technology, AI, digital, integration or equipment suppliers — BDC's LIFT FAQ states this is required to qualify
  • AI track excludes suppliers of premises, hotels, and trucking companies with fewer than 10 vehicles
  • Demonstrated ability to service the loan (BDC's standard credit assessment)
Provinces
All Provinces
Industries
All
Business Stage
Growth Established Expansion

Quick Assessment

Difficulty
Moderate
Competition
Low
First-Timer
Friendly

Funding Details

Amount
Digital Transformation & AI track: loans $25,000 to $2,000,000 (capital payments postponable up to 12 months; amortization up to 6 years). Productivity & Advanced Equipment track: loans $350,000 to $5,000,000 (initial capital payments postponable up to 2 years; amortization up to 12 years). No single track offers $25,000 to $5,000,000.
Type
Loan
Level
Federal
Financing share
Up to 100% of eligible costs
Deadline
Continuous intake — apply anytime

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Ongoing
Approval
Good
Accessibility
--/5
Competition
--/5
Approval Rate
--%
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What's in this Playbook

Everything you need to secure BDC LIFT — Lead with Innovation and Focus ...

Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.

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How to qualify

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

If you're under $5M revenue, route through the Digital Transformation & AI track — the $1M minimum is much more accessible than the Equipment track's $5M floor, and the mandatory advisory engagement (which adds cost) often unlocks better terms because BDC has already de-risked the project. Know the real ceilings: the AI track caps at $2M, and only the equipment track reaches $5M, with a $350K floor. You must work with qualified Canadian technology, AI, digital, integration or equipment suppliers to qualify — BDC's LIFT FAQ answers 'Yes' to whether Canadian suppliers are required, while BDC's Productivity-track page frames Canadian sourcing as earning preferential rates rather than as a hard requirement; both framings are published and we treat the FAQ as governing, so line up Canadian suppliers before you apply. Postpone capital payments (up to 12 months on AI, up to 2 years on equipment) to align cash flow with the productivity uplift the project is supposed to deliver — amortization runs up to 6 years on AI and up to 12 years on equipment, so model the two tracks separately. Ask your BDC advisor to model the LIFT loan against any existing BDC term loans you have — restructuring older debt into the LIFT envelope can sometimes reduce blended cost of capital.

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Success Profile

A profitable mid-size Canadian SME ($2-25M revenue) in manufacturing, agriculture, transport, or professional services that is ready to invest $25K-$2M in a Canadian-supplier digital or AI upgrade, or $350K-$5M in advanced equipment. The company has a clear productivity hypothesis (e.g., 'this AI tool will cut order-processing time 40%' or 'this robotic cell will let us run a third shift without hiring'), can service the loan from existing cash flow, has a completed plan for its track, and is comfortable working alongside a BDC advisor. Particularly well-suited to first-time AI adopters that want a guided path rather than open-ended self-directed adoption.

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Evaluation Criteria

BDC evaluates LIFT applications on (1) the revenue floor for the chosen track, (2) demonstrated profitability, a strong financial foundation and a solid credit history, (3) project alignment with eligible categories (digital, data, AI or cybersecurity on the AI track), (4) the required plan — a completed BDC Advisory Services Digital Plan on the AI track, an up-to-date productivity plan on the equipment track, (5) credit health and cash-flow capacity to service the loan, and (6) use of qualified Canadian technology, AI or equipment suppliers, which BDC's LIFT FAQ states is required to qualify (BDC's Productivity-track page frames the same sourcing as earning preferential rates).

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Submit online financing request Begin at bdc.ca/en/solutions/lift/lift-form — fill the LIFT request form with project type, estimated investment amount, and revenue band. BDC routes you to either the AI track or Equipment track based on inputs.
2 Initial advisor consultation BDC contacts you (typically within 2-5 business days) to schedule a free initial consultation. The advisor scopes your project, confirms track eligibility, and outlines the advisory engagement (mandatory for AI track, optional for Equipment — but a plan is required on both tracks).
3 Prepare credit application Submit financial statements (2-3 years), your plan (BDC Advisory Services Digital Plan on the AI track, productivity plan on the equipment track), cash flow projections including loan service, and your Canadian supplier list (required to qualify). For larger loans, BDC may request additional underwriting documentation.
4 BDC underwriting review BDC underwrites the loan against standard credit criteria (revenue, profitability, debt service coverage, project viability). Smaller loans (<$500K) may move quickly; larger loans require deeper review.
5 Term sheet + advisory scoping BDC issues a term sheet specifying loan amount, rate, repayment schedule, capital payment postponement window, and any covenants. AI track applicants finalize the BDC Advisory Services scoping document in parallel.
6 Loan execution and disbursement Sign loan documents. Funds disburse lump-sum or milestone-based depending on project size. Implementation begins; capital payment postponement (if elected) reduces early-year payments to interest-only.
7 Implementation and reporting Execute the project alongside the BDC advisor (AI track). Submit periodic financial reports per loan covenants. Address any covenant compliance issues proactively.

Required Documents 7

✓ Online financing request form (BDC LIFT request form)
✓ Most recent 2-3 years of financial statements
✓ Project plan or RFP describing the digital/AI or equipment investment
✓ Cash flow projections including loan service
✓ List of intended Canadian technology/equipment suppliers (required to qualify; BDC's Productivity-track page also ties Canadian sourcing to preferential rates)
✓ Completed BDC Advisory Services Digital Plan (AI track — mandatory)
✓ Up-to-date productivity plan (equipment track — mandatory, with or without BDC advisory support)

Eligible Expenses 8

  • Canadian AI software licenses, subscriptions, and integration work
  • Data infrastructure (cloud platforms, data warehouses, integration middleware)
  • ERP/CRM/HRIS implementation
  • Cybersecurity tools and assessments
  • Manufacturing equipment, robotics, automation systems
  • Wholesale/transport/construction operational equipment
  • BDC Advisory Services engagement fees
  • Implementation labour (internal + contracted)

Ineligible Expenses 5

  • Refinancing existing debt (general)
  • Real estate acquisition (use BDC's separate commercial real estate financing)
  • Working capital separate from the project
  • Operations not tied to the digital/AI or productivity project
  • Personal or non-business expenses

Deadline Notes

No application window; LIFT is part of BDC's continuous loan-and-advisory portfolio. Submit an online request, consult with a BDC advisor, then proceed to financing review and disbursement. The $500M envelope is multi-year; BDC has not published a target depletion date.

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Ineligible Organizations

  • Non-Canadian businesses or those without Canadian operations
  • Pre-revenue startups (below the $1M floor)
  • Businesses without demonstrated profitability
  • Real estate investment / passive holding companies
  • AI track exceptions: suppliers of premises, hotels, and trucking companies with fewer than 10 vehicles
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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

Federal SR&ED Investment Tax Credit CDAP (Canada Digital Adoption Program) Provincial productivity grants (e.g., Ontario PMA, Quebec ESSOR) Federal Accelerated Investment Incentive (AII)
Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk

As a loan, LIFT does not 'clawback' in the grant sense. However, default on loan covenants (missed payments, sale of financed equipment without notice, material misrepresentation in the application) triggers BDC's standard remedies including acceleration of the outstanding balance.

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How BDC LIFT — Lead with Innovation and Focus ... Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
BDC LIFT — Lead with Innovation and F... Digital Transformation & AI track:... Moderate Loan Continuous intake —...
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Frequently Asked Questions

Quick answers to the questions founders most often ask about BDC LIFT — Lead with Innovation and Focus ...

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Can I apply if I'm under $1M revenue?
No — the Digital Transformation & AI track requires $1M+ annual revenue, plus demonstrated profitability and a solid credit history. For lower-revenue businesses, consider CDAP for planning, then LIFT for implementation once you clear those thresholds.
What's the typical loan amount for AI projects?
Most AI projects get $50K–$500K. The AI track's ceiling is $2M, not $5M — only the Productivity & Advanced Equipment track reaches $5M, and that track starts at $350K.
Do I need a plan to apply?
Yes, on both tracks. The AI track requires a completed BDC Advisory Services Digital Plan. The equipment track requires an up-to-date productivity plan — BDC advisory support is optional there, but the plan itself is not.
Do I have to use Canadian suppliers?
Yes. BDC's LIFT FAQ asks 'Do I need to work with Canadian technology or equipment suppliers to qualify for LIFT?' and answers 'Yes', and the AI track page says you must work with qualified Canadian AI, digital or integration solutions. BDC's Productivity-track page describes Canadian sourcing as earning preferential rates; the LIFT FAQ is the governing statement, so plan on Canadian suppliers.
Do I need to pay for advisory services upfront?
No — advisory services are mandatory for the AI track but included in the loan cost (add 15-30% to your project budget). You don't pay them separately.
Can I stack LIFT with SR&ED?
Yes — SR&ED can cover the same R&D costs the LIFT loan finances. Coordinate with a SR&ED accountant to claim both on eligible expenditures.
Why do AI applicants get rejected?
Most rejections are due to not meeting the $1M revenue floor, no demonstrated profitability, no completed digital plan or unwillingness to commit to the mandatory advisory engagement, not working with qualified Canadian suppliers, or not articulating a clear productivity hypothesis.

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