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In Spring 2026, the Government of Canada provided funding to the Business Development Bank of Canada (BDC) for the Lead with Innovation and Focus on Technology (LIFT) program.
LIFT is designed to help Canadian businesses invest in artificial intelligence (AI), digital technology, automation and advanced equipment through preferential-rate financing.
LIFT is a loan program, not a grant or free funding. Businesses must qualify for financing and repay the loan. The program can help businesses improve their systems, strengthen cybersecurity, automate processes and increase productivity.
There are two LIFT loan streams:
Stream 1: Digital Transformation and AI
This stream is for businesses looking to improve their operations through AI, software and other digital technologies.
Businesses can receive up to $2 million in financing for eligible investments such as:
- AI software and applications
- Digital tools and systems
- Data infrastructure
- Technology implementation
- Employee training related to new technology
A key part of this stream is working with a BDC Technology and AI Advisor to create a practical digital roadmap for the business. The BDC roadmap is required to qualify for the LIFT loan.
Businesses can also receive discounted advisory services for areas such as cybersecurity, ERP (Enterprise Resource Planning) systems, supply chain management and business optimization.
There is an opportunity for a 2.25% preferential interest rate when using an eligible Canadian-developed AI software vendor. Businesses may also receive up to 12 months of principal payment postponement, helping to protect cash flow while the new technology is being implemented. There is no study fee to have the financing application assessed by BDC.
Stream 2: Productivity and Advanced Equipment
This stream is designed for businesses that want to invest in physical equipment, automation, robotics or smart machinery to improve productivity.
Businesses can receive up to $5 million in financing for eligible digitally enabled equipment.
This could include equipment that helps a business:
- Automate production or other processes
- Increase productivity
- Improve efficiency
- Make better operational decisions
- Improve maintenance
Businesses must have a practical productivity plan showing how the proposed investment will improve the business to qualify. The plan can be developed by the client or with BDC Advisory Services, if it meets BDC’s requirements.
Under Stream 2, you can unlock a base preferential rate of 2.25% if you meet the program’s criteria, including purchasing equipment from eligible Canadian suppliers.
Businesses may also be eligible for up to 24 months of principal payment postponement, giving them additional time to implement the equipment and begin seeing the benefits.
There is no study fee to have the financing application assessed by BDC.
Which Stream Is Right for Your Business?
Both streams are designed to help businesses make important technology investments while managing the cost and cash-flow impact of those investments. The easiest way to think about the two streams is:
Stream 1 = Technology and AI
If you’re investing in software, AI, digital systems, cybersecurity or data, Stream 1 may be the appropriate option.
Stream 2 = Equipment and Automation
If you’re purchasing robotics, automated/productivity enhancing equipment and machinery or other digitally enabled equipment, Stream 2 may be the better fit.
It’s important to note that LIFT financing cannot be used to cover costs for work that has already been completed. Businesses should therefore explore the program and confirm their eligibility before beginning the work or making the applicable investment.
If either program is of interest to you, please reach out to one of our team.