BDC LIFT: $500M AI loan with rates as low as 2.25% for SMEs

On April 24, 2026, the Business Development Bank of Canada (BDC) officially launched a major new program —LIFT Loan Program, with total funding up to$500M CADThe goal of this program is clear: get 1,000+ Canadian SMEs using AI and automation technology.

Why is the government pouring so much money through BDC? The data speaks: In 2025, only 30% of Canadian SMEs had adopted AI, and those that did...Productivity is on average 24% higherIn other words, businesses not using AI are quietly falling behind.

For Chinese-Canadian owners running restaurants, retail stores, wholesale trade, or small manufacturing in Ontario, this could be aExtremely low interest rates, flexible termsof financing opportunities.

What is BDC LIFT?

LIFT Full Name Lead with Innovation and Focus on TechnologyLaunched by BDC in April 2026, this specialized loan helps businesses purchase AI software, digital systems, automation equipment, and more.

Unlike traditional business loans, LIFT has one key feature:Loan + Consulting CombinedBDC doesn't just lend money; it first helps businesses create a technology upgrade plan to ensure funds are spent effectively.

Two paths covering businesses of different sizes

LIFT is not one-size-fits-all; it is divided into two sub-programs for different stages of business needs:

AI Routehas a much lower threshold—annual revenue of $100,000 qualifies, covering a significant number of SMEs operating in the GTA. AndEquipment RoadmapTargets slightly larger businesses that need to upgrade physical equipment.

Who Can Apply?

• Small and Medium Enterprises Registered and Operating in Canada
• AI Route: Annual revenue ≥ $1 million CAD
• Equipment Roadmap: Annual revenue ≥ $5 million CAD, and in one of 7 designated industries
• Has the ability to repay the loan (BDC will conduct a standard credit assessment)
• The AI track requires completing BDC's technology upgrade planning consultation first

The following situations are not suitable for application:

• Pre-revenue startups
• Non-Canadian Companies
• Pure Real Estate Holding Company
• Use a loan to repay existing debt
• working capital unrelated to the project

What is the real value of this loan?

Many business owners' first reaction to 'AI loan' is:"I run a restaurant/grocery store—what does AI have to do with me?"

Actually, LIFT covers a much wider range than you might think:

• Food & Beverage Industry: Smart ordering system, AI inventory management, automated back-of-house scheduling
• Retail/Wholesale: ERP system upgrades, customer data analysis, smart warehouse management
• service industries: CRM system, automated appointment scheduling, cybersecurity hardening
• Small-Scale Manufacturing: Production line automation equipment, AI quality inspection systems

BDC Chief Operating Officer Véronique Dorval said it directly in an interview:"LIFT isn't for tech experts—it's designed for entrepreneurs in every industry."

What makes LIFT better than other loans?

LIFT's 2.25% interest rate is nearly unbeatable in today's market. Compared to traditional bank business loan rates of 5%-8%, the interest savings alone are substantial.

Can this be combined with other grants or tax credits?

Yes, and BDC encourages stacking:

• SR&ED; Scientific Research Tax Credit— If the AI project involves R&D, you can also apply for tax credits
• CDAP Canada Digital Adoption Program— First get $15,000 for digital planning, then use LIFT for implementation
• Ontario PMAP Manufacturing Grant—Equipment route can stack with provincial productivity grants
• Accelerated Investment Incentive (AII)—Accelerated Depreciation on Equipment

Because LIFT is essentially a loan, not a grant, the risk of conflict with various government grants is very low.

Frequently Asked Questions

Q: I'm already using some software — can I still apply?

Yes. LIFT isn't just for businesses that 'haven't started digitizing.' Companies already using basic tools like QuickBooks or Square can use LIFT to upgrade to more powerful systems (ERP, CRM, AI analytics tools, etc.), which fully qualifies.

Q: Is the application process complicated? How long does it take?

BDC's standard process: submit a financing request online → consultant contacts you within 2-5 business days → prepare financials and project plan → BDC reviews → term sheet issued. Small loans (under $500K) are typically faster than large ones. Overall timeline depends on project complexity.

Q: We're not a tech company—can we still apply for the AI track?

Yes, and BDC specifically emphasizes this. Restaurants installing smart ordering systems, wholesalers using data analytics to optimize inventory, retailers upgrading ERP—all fall under the AI track. 'AI' here is a broad term for digital upgrades, not requiring you to develop AI models.

Q: Why is the BDC consultation mandatory for the AI route?

BDC's logic: many SME owners don't know exactly how much AI can save them or where to start. Mandatory consulting ensures loans go to truly effective projects, not a pile of unused software. As BDC's COO put it:"We want to make sure that when you use AI, it actually delivers results."

Q: What is the probability of being rejected?

BDC's approval standards are more flexible than the Big Six banks, especially for businesses with stable revenue and decent credit history. However, for companies with heavy losses, no clear project plan, or annual revenue significantly below the threshold, the approval rate will be affected. The key isQuality of the Project Plan— Explain clearly how this money will be spent and what returns it will generate.

Q: Is the interest rate really 2.25%?

2.25% applies when using a Canadian supplierBest Interest Rate. If you choose an international supplier, the interest rate will be slightly higher, but BDC has not disclosed specific numbers. Even at a slightly higher rate, it is still far lower than traditional business loans.