CDAP is dead, and as of 2026 the Business Development Bank of Canada's LIFT program is the federal government's answer for financing AI adoption, ERP and CRM projects, and other digital transformation work, offering Canadian small and medium-sized businesses loans from $25,000 to $5 million alongside mandatory or optional advisory support. LIFT is not a grant like CDAP was. It is preferential-rate financing, and for its AI and digital transformation pathway it requires a documented advisory plan before any money moves. This guide covers what happened to CDAP, what LIFT actually offers, who qualifies, and how it compares to the other financing still available to Canadian businesses.
If you searched for CDAP because you remembered a grant for website upgrades or a digital adoption plan, you are searching for something that no longer exists. That search volume has not gone away, it has just lost its answer. LIFT is the closest current program, and it is worth understanding clearly before you assume it works the same way CDAP did.
01. The Quick Answer: CDAP Is Gone, LIFT Is Here
The Canada Digital Adoption Program ended for good between February 2024 and March 2025. No direct federal grant replaced it. The Business Development Bank of Canada launched LIFT (Lead with Innovation and Focus on Technology) on April 24, 2026, a $500 million loan program aimed at more than 1,000 Canadian SMEs investing in AI, digital transformation, automation, or advanced equipment.
Why it matters: a lot of businesses are still planning around CDAP without realizing it closed, or assuming its replacement works the same way. LIFT is financing you repay, not money you keep, and it comes with real eligibility thresholds most CDAP applicants never had to clear.
02. At-a-Glance: CDAP vs BDC LIFT vs Other Financing
| Program | Status in 2026 | Type | Amount |
|---|---|---|---|
| CDAP (Canada Digital Adoption Program) | Ended, wound down by March 2025 | Grant plus interest-free loan | Up to $15,000 grant, plus up to $100,000 loan (historic) |
| BDC LIFT: Digital Transformation and AI | Active, launched April 2026 | Preferential-rate loan, mandatory advisory plan | $25,000 to $2,000,000 |
| BDC LIFT: Productivity and Advanced Equipment | Active, launched April 2026 | Preferential-rate loan, advisory optional | $25,000 to $5,000,000 |
| SR&ED tax credit | Active, ongoing | Refundable tax credit | Up to 35% of $3,000,000 in qualified spend per year |
| CBDC Innovation Loan (rural Atlantic Canada) | Active, ongoing | Interest-free loan | Up to $150,000 |
Why it matters: LIFT is not a one-for-one CDAP replacement, it is a different kind of program with a different shape. Most businesses building a funding stack in 2026 will combine LIFT with a tax credit or a regional program rather than expect one source to cover the whole project, a pattern we cover in more detail in our Atlantic Canada business grants and funding guide.
03. What Actually Happened to CDAP
The Canada Digital Adoption Program launched in 2022 with two streams: Grow Your Business Online, a micro-grant for basic e-commerce adoption, and Boost Your Business Technology, a larger grant paired with an interest-free loan for a formal digital adoption plan. Boost Your Business Technology stopped accepting new applications on February 19, 2024. Grow Your Business Online closed in September 2024. The program wound down entirely by March 31, 2025, and as of 2026 there is no confirmed direct federal replacement grant.
Why it matters: thousands of Canadian businesses still search for CDAP every month, often assuming it is a live option or looking for what replaced it. Third-party sites that still advertise CDAP applications are out of date, and acting on that assumption wastes weeks a real project timeline cannot spare.
04. What the BDC LIFT Program Covers
LIFT stands for Lead with Innovation and Focus on Technology. The Business Development Bank of Canada launched it April 24, 2026 as a $500 million initiative combining financing with advisory support, targeting projects in AI adoption, data infrastructure, ERP and CRM integration, cybersecurity, automation, robotics, and advanced machinery. Every eligible project has to include at least one Canadian technology, equipment, or solutions provider.
Why it matters: LIFT funds the exact kind of work AtlanticWorks already builds for manufacturers and wholesalers, ERP and CRM integration, data infrastructure, and AI adoption, which means a LIFT application and a real technology project can be scoped together instead of as two separate exercises.
05. Two Pathways: Digital Transformation and AI vs Productivity and Equipment
Digital Transformation and AI
Covers AI adoption, data infrastructure, ERP or CRM systems, and cybersecurity. Requires a minimum of $1 million in annual revenue and a mandatory BDC Advisory Services Digital Plan before financing is released. Loans run up to $2 million for software-first projects.
Productivity and Advanced Equipment
Covers automation, robotics, and machinery investments. Requires a minimum of $5 million in annual revenue, with an advisory plan optional rather than mandatory. Loans run up to $5 million, including for projects involving physical AI.
Why it matters: most lean manufacturers and wholesalers modernizing their systems, rather than their production floor, fit the Digital Transformation and AI pathway. Confirm which pathway matches your project before you start scoping the advisory plan, because the revenue thresholds and requirements are not interchangeable.
06. Eligibility: Who Actually Qualifies
- A Canadian small or medium-sized business with operations in Canada.
- Minimum $1 million in annual revenue for Digital Transformation and AI, or $5 million for Productivity and Advanced Equipment.
- At least one Canadian technology, equipment, or solutions provider in the project.
- A defined project with a technology plan, not a general intention to modernize.
Why it matters: CDAP was open to very small businesses with a simple online form. LIFT's revenue thresholds rule out the smallest SMBs entirely, so the first real step is confirming your business clears the bar before investing time in a Digital Plan.
07. Loan Amounts, Rates, and Terms
Loans start at $25,000. Software-first AI and digital transformation projects can borrow up to $2 million, and projects involving physical AI or equipment can borrow up to $5 million. Terms run up to 8 years, with rates from roughly 2.25 percent to 4 percent on approved credit, and principal payments can be postponed for up to two years while the project ramps up.
Why it matters: the two-year principal postponement matters more than the headline rate for most SMBs, because it gives an AI or CRM project time to actually produce a return before repayment starts in earnest.
08. The Mandatory Advisory Plan for AI Projects
For the Digital Transformation and AI pathway, BDC requires a Digital Plan before it releases financing. BDC Advisory Services can build the plan with you or refine one you already have. The cost is typically added to the loan rather than billed separately, adding roughly 15 to 30 percent to the project budget. The plan has to describe a real project: the technology, the cost, and the expected outcome, not a vague intention to adopt AI.
Why it matters: a business that walks into the advisory process with its own clear project scope, rather than a blank page, moves faster and pays less in advisory time. This is exactly the kind of scoping work a free assessment is built to produce.
09. How to Apply
- Confirm eligibility and pathway on the official BDC LIFT page before doing anything else.
- Scope the project: the technology, the cost, and the measurable outcome.
- Work with BDC Advisory Services to build or refine the required Digital Plan.
- Submit through BDC's application portal. Applications are accepted on an ongoing basis, not a fixed intake window.
Why it matters: LIFT has no application deadline the way some provincial vouchers do, but a poorly scoped project still gets a slower, more expensive advisory process. The application is only as strong as the plan behind it.
10. Is LIFT the Right Fit for Your Business
- $1 million-plus revenue, modernizing systems: LIFT's Digital Transformation and AI pathway is a strong fit.
- $5 million-plus revenue, investing in equipment: the Productivity and Advanced Equipment pathway fits, with advisory optional.
- Under $1 million in revenue: LIFT is not available yet. Look at ACOA, a CBDC Innovation Loan, or a provincial innovation voucher instead.
- You need non-repayable money specifically: pair LIFT with SR&ED or a regional grant rather than relying on LIFT alone.
Why it matters: LIFT is a strong option for the businesses it was built for, but it is not the universal CDAP replacement many are hoping to find. Knowing where you fall on the revenue threshold saves a wasted application.
11. How AtlanticWorks Helps
AtlanticWorks builds the exact kind of projects the BDC LIFT program finances: AI adoption, ERP and CRM integration, and data infrastructure for manufacturers, wholesalers, and retailers across Atlantic Canada and beyond. As a certified Shopify, HubSpot, Google, and Salesforce partner, we scope a defined project with a clear cost and a measurable outcome, the same terms BDC Advisory Services needs to see in a Digital Plan. We do not file your LIFT application or promise financing no one can guarantee. What we do is turn a general idea about AI automation or ERP integration into a project you can actually bring to a lender. It starts with a free assessment.
12. Key Takeaways
- CDAP is closed for good. Its grant and loan streams wound down between February 2024 and March 2025, and no direct federal grant has replaced it.
- The BDC LIFT program, launched April 24, 2026, is the current federal option for financing AI adoption and digital transformation, but it is a loan, not a grant.
- The Digital Transformation and AI pathway needs $1 million in minimum annual revenue and a mandatory BDC Advisory Services plan before financing is released.
- Loan amounts run from $25,000 to $2 million for software-first AI projects and up to $5 million for projects involving physical equipment.
- Businesses that need non-repayable money should pair LIFT with SR&ED, ACOA, or a provincial innovation voucher rather than rely on LIFT alone.
13. Frequently Asked Questions
Is CDAP still available in 2026?
No. The Canada Digital Adoption Program stopped accepting new applications for its Boost Your Business Technology stream in February 2024 and its Grow Your Business Online stream in September 2024, then wound down completely by March 31, 2025. Some third-party sites still advertise CDAP grants, but the program is closed. The closest current federal option for financing AI adoption and digital transformation is the BDC LIFT program, launched April 24, 2026.
What is the BDC LIFT program?
LIFT, short for Lead with Innovation and Focus on Technology, is a $500 million financing program from the Business Development Bank of Canada launched April 24, 2026. It pairs flexible-rate loans with mandatory or optional advisory support across two pathways: Digital Transformation and AI, and Productivity and Advanced Equipment. It targets more than 1,000 Canadian small and medium-sized businesses investing in AI, ERP or CRM systems, data infrastructure, cybersecurity, automation, or machinery.
Who is eligible for BDC LIFT?
Eligibility depends on the pathway. The Digital Transformation and AI pathway requires a minimum of $1 million in annual revenue and a mandatory BDC Advisory Services plan. The Productivity and Advanced Equipment pathway requires a minimum of $5 million in annual revenue, with advisory support optional. In both cases, you must be a Canadian small or medium-sized business operating in Canada, and your project must include at least one Canadian technology, equipment, or solutions component.
How much can a business borrow through BDC LIFT?
Loan amounts start at $25,000. Software-first AI and digital transformation projects can borrow up to $2 million, and projects involving physical AI or equipment can borrow up to $5 million. Terms run up to 8 years with rates from roughly 2.25 percent to 4 percent on approved credit, and principal payments can be postponed for up to two years.
What is the mandatory BDC Advisory Services plan?
For the Digital Transformation and AI pathway, BDC requires a Digital Plan before it releases financing. BDC Advisory Services can build that plan with you or refine one you already have, and the cost is typically added to the loan rather than billed separately, adding roughly 15 to 30 percent to the project budget. The plan has to show a real project: the technology, the cost, and the expected outcome, not a general intention to modernize.
Is BDC LIFT a grant or a loan?
It is a loan, not a grant. Unlike CDAP, which paired a non-repayable grant with a separate interest-free loan, LIFT is entirely repayable financing at a preferential rate. Businesses that specifically need non-repayable funding should look at SR&ED tax credits, ACOA contributions, or provincial innovation vouchers alongside LIFT rather than instead of it.
Related resources
The full 2026 map of grants, loans, and tax credits by province
A practical guide for Canadian small businesses
Where AI adoption projects actually pay off on the shop floor
The kind of data infrastructure project LIFT is built to finance
Planning a LIFT-fundable AI or digital transformation project?
AtlanticWorks scopes AI, CRM, and ERP projects for Canadian manufacturers, wholesalers, and retailers in the exact terms BDC Advisory Services needs to see: a defined build, a clear cost, and a measurable outcome. The free assessment is a 30-minute scoping conversation, not a demo.
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