A wholesaler wants to replace manual picking with barcode scanning and an automated fulfilment line. A professional services firm wants its client data in one system before it puts AI on top of it. Both owners know what they want to do. Both stall on the same two questions: how to pay for it, and whether the plan is sound.
LIFT (Lead with Innovation and Focus on Technology) is the Business Development Bank of Canada's answer to those two questions. BDC launched it on 24 April 2026 as a $500 million program that aims to reach about 1,000 small and mid-sized businesses. It pairs consulting with financing, so a business plans the investment first and borrows second. This article explains how the program is built, who qualifies for each of its two paths, and how to get ready before you apply.
Loan, not grant: LIFT is repayable financing with consulting attached. Budget for repayment, and treat the lower rate as a saving on a project you would want to do anyway.
One program, two paths
LIFT has two streams, and they have different entry rules. The first step is to work out which one your project belongs to.
| Digital transformation and AI | Productivity and digitally enabled equipment | |
|---|---|---|
| Purpose | Build digital capability and adopt AI | Raise output through automation and smart equipment |
| Typical investments | Data infrastructure, ERP and CRM systems, AI use cases, cybersecurity tools and audits, configuration, training | Robotics, automation systems, automated production equipment, network and connectivity hardware, inspection equipment, installation and integration |
| Minimum annual revenue | $1 million | $5 million |
| Industries | All, with a few exceptions (see below) | Seven named sectors only |
| Plan required | A BDC Advisory Services Digital Plan. This is mandatory. | An up-to-date productivity plan. You can bring your own or build one with BDC Advisory Services. |
| Loan size | $25,000 to $2 million | $350,000 to $5 million |
| Capital payment postponement | Up to 12 months | Up to 2 years |
| Amortization | Up to 6 years | Up to 12 years |
The figures above come from BDC's program pages as of November 2026. Terms can change, so confirm them with BDC before you build a budget around them.
Who qualifies: digital transformation and AI
BDC lists five minimum requirements for this path:
- A Canadian-based business with at least $1 million in annual revenue.
- A strong financial foundation and a solid credit history.
- Demonstrated profitability.
- An investment focused on digital, data, AI or cybersecurity.
- A completed BDC Advisory Services Digital Plan. You cannot substitute a plan from another source on this path.
Businesses from any industry can apply, with some exceptions. BDC names businesses that supply premises, hotels, and trucking companies with fewer than 10 vehicles.
Who qualifies: productivity and digitally enabled equipment
The equipment path is aimed at larger projects and has a higher bar:
- A Canadian-based business with at least $5 million in annual revenue.
- An eligible sector. Only these seven qualify: manufacturing; transport and warehousing; wholesale; construction; agriculture, forestry, fishing and hunting; architectural, engineering and related services; and mining, quarrying, and oil and gas extraction.
- An up-to-date plan for productivity improvements.
- Financial capacity to support the investment.
- An investment in digitally enabled equipment or automation that improves productivity.
"Digitally enabled" matters here. BDC describes it as equipment with built-in smart capabilities that collect, process, connect or share data. A conventional machine with no data connection is unlikely to fit. Examples BDC gives include:
| Sector | Examples of digitally enabled equipment |
|---|---|
| Manufacturing | CNC machines with digital controls and sensors, connected industrial robots, automated production lines, digital quality inspection |
| Transport and warehousing | Warehouse automation with RFID or barcodes, automated storage and retrieval systems, fleet telematics |
| Wholesale | Automated order fulfilment, smart picking and packing, inventory equipment integrated with an ERP |
| Construction | GPS-enabled heavy equipment, smart surveying and digital mapping tools |
| Agriculture | Precision equipment such as GPS tractors, smart irrigation, crop-monitoring drones |
| Mining, oil and gas | Sensor-enabled drilling equipment, remote monitoring, predictive maintenance platforms |
| Engineering services | Digital prototyping tools, connected fabrication systems, measurement systems with data reporting |
Meeting the minimums is not approval
BDC states that eligibility also depends on your financial health, your industry and the nature of the project. It also states that completing a plan with BDC Advisory Services is an important step, and that financing approval remains subject to its standard criteria. Treat the lists above as the entry conditions. The lending decision comes after them.
The Canadian supplier rule
LIFT is built to direct spending toward Canadian technology. BDC's program FAQ says you need to work with Canadian technology or equipment suppliers to qualify, and that your advisor can help confirm whether a supplier counts. The AI path says you must work with qualified Canadian AI, digital or integration providers.
The wording on rates is slightly different. BDC ties its preferential rate to solutions supplied or integrated by Canadian suppliers. BetaKit reported at launch that businesses choosing a Canadian AI solution or system integrator could receive a rate of 2.25 percent, and that businesses choosing otherwise could still be supported. BDC's own pages do not publish a number.
The practical reading: plan on Canadian suppliers and integrators, and ask BDC early how your shortlist will be treated. Do this before you sign a purchase agreement.
What your plan has to contain
Both paths require a plan before financing. The two plans cover similar ground.
| Digital and AI plan | Productivity plan |
|---|---|
| IT roadmap and infrastructure: software, hardware, service providers and AI options | A decision framework for comparing options and setting priorities |
| Security and compliance | A recommendation on the most suitable technology or equipment for your goals |
| Timeline and roles | Implementation activities, timeline and roles |
| Analysis of potential gains and savings against the investment | Expected benefits set against a realistic total project cost |
| Estimated project cost, including software, hardware, integration, training, staffing and data |
BDC publishes a checklist for the productivity plan on its equipment page. If you already have a plan, compare it against that checklist before you submit it.
How to apply
- Start a request online. Describe your business and the project on BDC's LIFT page.
- Talk with an advisor. BDC assesses your needs and confirms which path fits. On the AI path, this leads into the Digital Plan engagement.
- Access financing. With the plan in place, the financing request goes through BDC's credit review.
How to prepare before you call
The businesses that move fastest arrive with their numbers ready. Seven things to prepare:
- Confirm the basics. Check your annual revenue against the $1 million or $5 million threshold and, for equipment, your sector against the list of seven.
- Gather your financial statements. Profitability, credit history and capacity to carry the loan are part of the assessment on both paths.
- Define the problem in numbers. Record your current state: cycle time, labour hours, scrap or rework, order errors, downtime. A plan with no baseline cannot show a benefit.
- Map the process that will change. Technology placed on a poorly understood process automates the waste along with the work.
- Estimate the full cost. Include installation, integration, training and data work with the purchase price. BDC says financing may cover installation, integration and implementation costs that are directly tied to the investment.
- Shortlist Canadian suppliers and integrators. Get quotes you can put in front of an advisor.
- Name an owner. Decide who will lead the project and how much of their time it will take.
Speak with your accountant as well. BDC's program page points to a new federal tax deduction that may apply to productivity investments.
If you do not qualify
A business below the revenue threshold, or outside the seven sectors for an equipment project, still has options. BDC says it offers other technology financing, equipment loans and advisory services, and that an advisor can direct you to the right one. The preparation above is useful for any lender, so the work is not wasted.
Key points
- LIFT combines consulting and repayable financing. It is not a grant.
- The AI path needs $1 million in revenue, demonstrated profitability and a BDC Advisory Services Digital Plan. Most industries qualify.
- The equipment path needs $5 million in revenue, one of seven sectors, and a productivity plan that you can bring or build with BDC.
- Plan on Canadian suppliers and integrators, and confirm with BDC how your choices affect eligibility and rate.
- Meeting the minimums gets you to the credit review. It does not guarantee approval.
Getting ready for a technology investment? Chmltech helps Canadian businesses map their processes, set baselines and build the business case for AI, systems and automation. Book a strategy call or ask a question.
This article is general information, not financial advice. Chmltech Ltd. does not speak for BDC. BDC sets the terms of LIFT and decides eligibility and approval. Program details are as published in November 2026 and may change.
Sources
- BDC: LIFT, Lead with Innovation and Focus on Technology
- BDC: LIFT, digital transformation and AI
- BDC: LIFT, productivity and digitally enabled equipment
- BetaKit: BDC's new $500-million loan program will help smaller businesses adopt AI
