The Business Development Bank of Canada (BDC) has opened a new loan program to help 1,000 small and medium-sized enterprises (SMEs) adopt AI.
Launched on Friday morning, the $500-million LIFT initiative (which stands for “Lead with Innovation and Focus on Technology”) connects SMEs with consultants who will help them figure out where AI can best be integrated into their businesses, then provides a loan to get it done.
“The program includes that component of advice to help make sure you’re going to use AI when it pays off.”
BDC COO Véronique Dorval told BetaKit in an interview on Thursday that the program is meant to help Canadians SMEs “move from the sidelines of AI” and invest confidently in improving their business’s productivity. Dorval explained that’s why the consultant is such an important part of the program.
“The program includes that component of advice to help make sure you’re going to use AI when it pays off, and then give you the means to invest,” Dorval said, while acknowledging that entrepreneurs are trying to be thoughtful with their cash flow.
The federal crown corporation’s new program will provide loans ranging from $25,000 to $5 million, which can be used to buy digital tools that help the business’s productivity, data infrastructure, and cybersecurity, or even on hardware like advanced automation equipment and robotics.
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Dorval said the loan comes with “quite advantageous conditions” for entrepreneurs, particularly if they choose a Canadian AI solution or system integrator. While it’s still possible for an SME to be supported by the LIFT program if they don’t choose Canadian, SMEs that do can receive a preferential interest rate of 2.25 percent.
The LIFT program “supports not only productivity, but the Canadian ecosystem,” Dorval said.
Citing an upcoming study, BDC said that only 30 percent of Canadian SMEs used AI in 2025. However, the businesses that did were 24 percent more productive than non‑users. The bank claims that if every SME had the same level of technological maturity as the most advanced companies in Canada, GDP could grow by up to 14 percent. With this in mind, Dorval said LIFT aims to close the AI adoption gap.
“We know that this productivity gap is likely to widen if entrepreneurs don’t adopt [AI] rapidly,” Dorval said. “Choosing not to adopt AI means that, from a competitive point of view, your position is going to be threatened by other players.”
Feature image courtesy BDC