AI grants for small business in Canada: what's available in 2026

Quick comparison

Canada Digital Adoption Program in 2026: closed

CDAP was the go-to program for small-business digital funding, and it's still widely searched. According to BDC, no new applications have been accepted since the February 19, 2024 grant-agreement deadline. The program's online stream closed later in 2024, and the program ended on March 31, 2025.

BDC now directs businesses to BDC LIFT, which is the closest thing to a CDAP replacement. It's a loan rather than a grant, and it's aimed at larger small businesses.

BDC LIFT: loans for AI adoption

LIFT is a $500 million BDC loan program launched in April 2026. It funds digital tools, data infrastructure, cybersecurity and Canadian AI applications. The AI track needs $1M+ in annual revenue, a plan from BDC Advisory Services, and Canadian suppliers. Our full BDC LIFT guide covers eligibility and how to apply.

AI funding for Manitoba small businesses: the Building Up Manitoba Program

The Canada-Manitoba Job Grant has been discontinued. It was replaced in 2026 by the Building Up Manitoba Program (BUMP), which combines the old job grant with the Workforce Development Program.

• 50% cost-share on eligible training. The old higher rate for small employers is gone.
• Up to $10,000 per employee for training, plus up to $25,000 for HR strategy development, to a maximum of $100,000.
• Employers need fewer than 500 FTEs and at least one year of operation in Manitoba.
• Training on or after April 1, 2026 is eligible. Tech and digital training qualifies when it's tied to creating jobs, improving existing jobs or job security.
• Degree and diploma programs, conferences, and training already funded by other programs don't qualify.
• Intake is continuous: submit an intake form, meet a program consultant, and then you're invited to apply.

This is the most accessible program for most small businesses. Structured Copilot and AI training for employees built around your team's work is a natural fit.

NRC IRAP and SR&ED: for building, not buying

NRC IRAP supports incorporated, for-profit Canadian companies with up to 500 employees that are developing and commercialising technology-driven products. It doesn't fund routine operating costs, and sole proprietors and partnerships aren't eligible. If you're building an AI product, talk to an IRAP advisor. If you're adopting existing tools, it usually isn't the right program.

SR&ED is a federal tax credit for scientific research and experimental development. Budget 2025 raised the enhanced credit's expenditure limit. It rewards genuine technical uncertainty, not implementing off-the-shelf software.

Other Manitoba programs

The Manitoba Innovation Growth Program offers non-repayable funding of up to $100,000 on a 50/50 basis for commercialising innovations. Eligible firms are Manitoba CCPCs with $15M or less in revenue or fewer than 100 employees. The 2026 intake closed on June 30, 2026, so watch for the next one.

PrairiesCan announced $10.2 million in July 2026 for AI adoption at six Manitoba organisations. Its Regional Artificial Intelligence Initiative accepts applications until December 31, 2028 or until funds run out. It's generally aimed at larger projects than a typical small-business automation.

If nothing fits: fund it from the savings

Most small-business automation projects cost less than people expect. A single workflow is often a few thousand dollars, and it pays for itself from the hours it saves within months. See typical ranges on our pricing page, or book a free audit and we'll estimate the payback before you spend anything.