The Canada Digital Adoption Plan (CDAP) is a Federal Government initiative which is intended to help small and medium-sized businesses boost their e-commerce presence, and run their businesses more effectively through digital technology.
The CDAP aims to accomplish this goal by providing $4 billion dollars in total funding to small and medium-sized businesses who want to adopt new digital technologies.
This stream is for SMEs with $500,000.00 or more in gross revenues during any one of the previous three tax years. It provides applicants with the following benefits:
The Federal Government will provide the applicant with a grant (the “Digital Action Grant”) to cover most of the cost of hiring a Digital Advisor to prepare a Digital Action Plan for the applicant’s business.
The amount of the Digital Action Grant will be the lesser of 90% of the total cost (inclusive of taxes) of the Digital Action Plan or $15,000.00; put simply, the Digital Action Grant will cover 90% of the cost of the Digital Action Plan, but to a maximum of $15,000.00 in grant funding. The Digital Advisor must be registered with the CDAP administrator in order for the applicant to be eligible for this grant.
Applicants who retain a Digital Advisor to prepare a Digital Action Plan for their business will then be eligible for a wage subsidy grant of $7,300.00 to cover the cost of hiring a university student or recent graduate to help implement their Digital Action Plan, or a portion thereof. The details of this specific benefit are not all available yet and it won’t actually become available for at least another few weeks, or perhaps even a few months.
The only ‘catches’ to this benefit are that it will only be paid to the business as a reimbursement after they’ve paid the employee’s wage and the employee must be hired through a CDAP-approved third-party organization.
Applicants who retain a Digital Advisor to prepare a Digital Action Plan for their business will also be eligible to apply for an interest-free loan from the BDC. If the applicant’s revenues are between $500k-$5M, they can request a loan of up to $50k. If the applicant’s yearly revenues exceed $5M, they can request a loan of up to $100k.
These loans are completely interest-free and have a six-year repayment term with no repayments during the first year. The application process is quite simple and there’s no application fee. The applicants are not guaranteed these loans but so long as the applicant is generally credit-worthy, they should receive them. Once you factor in inflation and the general cost of borrowing, the value of a $50k interest free loan is probably around $15k.
This stream is likely irrelevant to you for business purposes. This stream is for SMEs with less than $500,000.00 in revenue. It provides such applicants with a “micro-grant” of $2,400.00 to help cover costs relating to the adoption of digital technologies. This stream does not provide any additional funding to cover the cost of developing a Digital Action Plan”.
In summary, an applicant under this stream may qualify to receive a Digital Action Grant of up to $15k to cover the cost of retaining a Digital Advisor to prepare a Digital Action plan for their business. Once that step is complete, the applicant may also be eligible for a $7,300 work placement grant to cover the cost of hiring a recent grad to assist with implementing their Digital Action Plan and they will may also be eligible for an interest free loan of $50k-$100k, so long as they are generally credit worthy.
Start your application today.
The Government of Canada has outlined four mandatory criteria for eligible applicants to apply for The Boost Your Business Technology grant:
Incorporated at the national or provincial level; or be a Canadian resident sole proprietor.
Privately-owned for-profit entity.
Maximum full time equivalent employees of less than 500
Not more than 100 million or less than 500,000 in revenue in the last 3 tax years.
Find out which grant your business is eligible for through
the government grant assessment tool.
Find out which grant is you business eligible through
the government grant assessment tool.
We are here to help. We are excited to be part of your digital transformation and we strive to help Canadian small businesses to succeed and thrive in the digital world.
The CDAP stands for Canada Digital Adoption Program. It’s offering $4 billion in total to help small to medium sized businesses embrace digital transformation. Businesses can receive up to $15,000 to retain a Digital advisor and help with the costs of coming online.
The CDAP covers up to 90% of eligible costs to retain the services of a digital advisor.
The business world is moving closer to online each and every day. The funding allows businesses to receive the chance to have a full digital transformation. Gain insight with your digital advisor to see the possibilities of being digital.
– Gain access to a digital transformation advisor without worrying about cost
– Digital businesses are more likely to have higher sales growth and make more profit
– Use new technology to enhance your business without the learning curve
There are no fees associated with CDAP to apply. The $15,000 is a grant that covers up to 90% of eligible costs to retain the services of a digital advisor.
Visit the CDAP webpage to learn more about the grant. The webpage also has a quick test to see if you may be eligible.
Applicants must meet the four mandatory criteria outlined by the Government of Canada .
1. Incorporated at the national or provincial level or be a sole proprietor Canadian resident
2. Privately-owned for profit entity
3. Maximum full time equivalent employees of less than 500
4. Not more than 100 million or less than 500,000 in revenue in the last 3 tax years.
Step 1. Register – Interested applicants need to register on the Innovation, Science and Economic Development Canada’s (ISED) website.
Step 2. Plan – Build a digital plan outlining your digital transformation
Step 3. Approval – ISED needs to validate the plan. After there decision you’ll be able to submit invoices to receive the $15,000
The CDAP launched in January of 2022. Businesses are able to submit proposals until further notice. There is no set application deadline.
Although there are no loans part of the CDAP the Business Development Bank of Canada (BDC) is offering a 0% interest loan of up to $100,000. Please note businesses will still have to apply for a BDC loan. Gaining eligibility for CDAP doesn’t guarantee approval of the BDC loan.
After completing your digital needs assessment, you’ll gain access to the CDAP’s Digital Advisor Marketplace. The advisors on the marketplace are industry experts in digital transformation and have been approved by the government.
We are here to help. Let’s connect.
