Only 30% of Canadian small and medium-sized businesses used AI in 2025. That means seven out of ten SMEs were sitting on the sidelines while the technology reshaped entire industries around them.
The part worth paying attention to: the businesses that did adopt AI were 24% more productive than those that didn’t, according to BDC’s own data. That’s not a marginal edge. That’s a different playing field.
Now, the Business Development Bank of Canada is putting serious money behind closing that gap. On April 24, 2026, BDC launched LIFT, a $500-million program designed to help more than 1,000 Canadian SMEs move from thinking about AI to actually using it.
If you run a Canadian business and you’ve been wondering whether AI adoption is worth the investment, this program is worth your time.
LIFT stands for Lead with Innovation and Focus on Technology. It’s a combined package of flexible financing, expert advisory services, and implementation support to help Canadian SMEs get up and running with AI.
The idea isn’t just to hand out loans. BDC is pairing eligible business owners with AI advisors who help identify opportunities, build a roadmap, and guide implementation. Think of it as a guided on-ramp rather than a blank cheque.
“We hear it all the time: SMEs are stretched thin and finding time for AI is a real challenge,” said Isabelle Hudon, President and CEO of BDC. “But their competition isn’t waiting. Companies using AI are more productive — and LIFT gets SMEs started fast by removing the barriers and delivering practical, real world results.”
Who Qualifies and What’s on the Table
LIFT has two tracks, each with its own eligibility requirements and loan terms.
The Digital Transformation & AI track is for businesses with at least $1 million in annual revenue. It covers software-focused AI projects, including AI-driven customer service tools, back-office automation, and data infrastructure. Loans on this track go up to $2 million, and participation in BDC’s advisory services is mandatory. The advisory requirement helps keep the focus on real adoption, not just a software licence that collects dust.
The Productivity & Advanced Equipment track is for larger businesses with at least $5 million in annual revenue. It covers productivity-focused investments like advanced equipment, robotics, automation, and related implementation costs. This track is limited to specific sectors, including manufacturing, transport and warehousing, wholesale, construction, agriculture, architectural and engineering services, and mining, quarrying, and oil and gas extraction. A productivity plan is required, but BDC advisory support is optional if the business already has one.
Across LIFT, financing ranges from $25,000 to $2 million on the Digital Transformation & AI track and $350,000 to $5 million on the Productivity & Advanced Equipment track. Repayment flexibility depends on the track, with capital payment postponement options available as businesses implement their projects. That breathing room can matter a lot when you’re making a technology investment that takes time to pay off.
There’s also a built-in incentive to buy Canadian. BDC says preferential financing rates and terms are available when technology solutions are sourced from Canadian suppliers. That Canadian-supplier focus supports the domestic AI ecosystem while giving SMEs access to homegrown expertise.
Why the Timing Matters
LIFT responds to mounting evidence that Canada’s SMEs are falling behind on technology, and that the cost of inaction is getting harder to ignore.
According to a BDC study, if every Canadian SME had the same level of technological maturity as the most advanced companies in the country, GDP could grow by up to 14%. Put differently, there’s an enormous amount of untapped potential sitting inside small and mid-sized businesses right now.
The barriers are well-documented. Sage research found that 58% of small firms cite affordability as the biggest obstacle to digital transformation, while 41% of medium-sized firms cite a lack of internal expertise. And according to KPMG research, only 24% of Canadian respondents said they had received AI education or training, a gap that leaves many businesses unsure of where to even start.
Rising commercial rents, inflation, reduced consumer spending, and global trade uncertainty make long-term technology investments easier to delay. LIFT is designed to make that first step easier to take.
What to Do Next
If your business meets the revenue thresholds and you’ve been considering an AI project, LIFT is worth exploring. The application process starts with a simple online request at bdc.ca/en/solutions/lift. From there, BDC says applicants talk with an advisor before accessing financing.
Even if you don’t qualify for LIFT, the larger message is clear. Canada’s development bank just committed half a billion dollars because the data shows that SMEs adopting AI are already pulling ahead. Whether it’s through this program or on your own terms, the window for treating AI as a “nice to have” is closing fast.
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