CDAP Offers Grants to Help Businesses Adopt New Technologies
“It is not the strongest of the species that survives, but the most adaptable.” The quote is a summary of Charles Darwin’s theory of evolution. He was referring to living organisms, but the theory is easily applied to businesses as well. Put succinctly, organisms (and businesses) must “Adapt or die.”
And when it comes to adapting to changes in the technology ecosystem, Canadian businesses are lagging their counterparts in other G7 countries. Businesses that welcome technology tend to be more efficient, competitive, and resilient. So then why are so many Canadian firms dawdling on their technology adoption? One theory is that Canadian businesses have only been as “innovative as they need to be” – meaning companies across industries have maintained above average profits for decades with minimal innovation and technology adoption. For companies that have seen the need to change, many face prohibitive resource and skills constraints.
In a pitch to address this digital deficit, the federal government launched the Canada Digital Adoption Program (CDAP) in March 2022. This $4 billion program helps businesses develop digital adoption plans and cover the costs of implementing new digital technologies.
CDAP comprises 2 separate funding components:
2. Boost Your Business Technology
We will unpack each of these streams below.
What is the Grow Your Business Online stream of CDAP?
It’s a grant of up to $2,400 to build your online store, enhance your digital presence and online visibility. Participants collaborate with an e-commerce advisor for personalized guidance, strategy, grant planning, and tech support.
The Grow Your Business Online stream of CDAP is a grant of up to $2,400 to help businesses sell online.
Who qualifies for the Grow Your Business Online grant?
Businesses must meet the following criteria to qualify:
For-profit (including for-profit social enterprises and co-operatives).
Registered or incorporated.
Can be accessed by end use consumers or provides in-person services to consumers.
Has at least one employee on payroll that isn’t the owner or a contractor (full time or part time, but for at least three months prior to application) or have had at least $30,000 in annual revenue in the most recent tax year.
Must commit to maintaining the digital adoption strategy for at least six months after participation in the program.
The following types of businesses are ineligible:
Corporate chains, franchises or registered charities
Representatives of multi-level marketing companies
A brokerage firm and their agents (real estate, investment, insurance, etc.)
Businesses that engage in online reselling or drop-shipping businesses reliant on third party suppliers
Wholesale or distribution businesses and manufacturers (unless their business model includes direct sales to the end consumer)
What does the Grow Your Business Online grant cover?
The grant covers costs that are directly tied to selling products or services online. This includes but is not limited to:
Development of a new e-commerce website
Upgrading an existing e-commerce site for added functionality
Online reservation/booking tools
Online ordering systems
Electronic payments
E-commerce software including:
o Software to manage inventory and fulfill and ship orders
o Software to track sales and market to customers
o Cyber security software or certificates
o Examples of software that may be included: Shopify, Lightspeed, Canva, Jane, MindBody, Mailchimp.
Hardware and accompanying software up to 20% of the total grant amount
A portion of the costs of social media advertising and search engine optimization
Hiring someone to execute digital marketing initiatives related to your e-commerce store
How do I apply for the Grow Your Business Online grant?
In Alberta, the grant is administered by Business Link. The application process is managed on the Digital Main Street platform. Go to www.digitalmainstreet.ca, click Sign Up at the top right corner, and follow the prompts. (If you have worked with the Digital Economy Program, you will already have a Digital Main Street account). When you apply for the grant, you will be working with an advisor who will guide you on creating your spending plan and submitting documents. Note that the grant is a reimbursement. You must submit a spending plan, carry it out, and then submit your receipts for reimbursement.
How long is the Grow Your Business Online grant open for?
CDAP is a four-year program, so you can apply for the program until 2026.
What happens if I apply and get rejected?
You’ll have lost some time, but there are no other penalties.
Is the grant income taxable?
Yes, grant funds are taxable and should be reported on your corporate tax return. Be sure to tell your accountant about any grants you receive.
Where can I get more information on the Grow Your Business Online grant?
Check out the Digital Main Street page here: https://digitalmainstreet.ca/ab-cdap/ and the Government of Canada page here: https://ised-isde.canada.ca/site/canada-digital-adoption-program/en/grow-your-business-online
What is the Boost Your Business Technology stream of CDAP?
It covers up to 90% of the cost of hiring a Digital Advisor who will develop a Digital Adoption Plan tailored to the businesses. (Up to a maximum grant payment of $15,000).
Sometimes we know our business could benefit from increased technology adoption, but we’re not sure how or where, or what software to choose. Conversely, we may not even be aware that a business process could be improved with digitization. This is where a Digital Adoption Plan comes in. You can go to the Digital Advisor with a specific problem “I’m looking for point of sale software,” or a broader challenge “How can we protect our business from cybersecurity threats?” and they will work with you to develop a custom plan for your business.
The grant is issued as a reimbursement within 30 days of submitting your invoice from your digital advisor. To support the implementation of the digital adoption plan, businesses can also apply for a 0% interest loan (up to $100,000) from the Business Development Bank of Canada, and a youth placement wage subsidy of up to $7,300.
The Boost Your Business Technology stream of CDAP offers a grant of up to $15,000 to create a digital adoption plan, plus a 0% interest loan of up to $100,000 and a funded work placement of up to $7,300.
Who qualifies for the Boost Your Business Technology grant?
To qualify, businesses must:
Have had at least $500,000 in annual revenue in 1 of the last 3 years
Have 1 to 499 employees
Be for-profit
Be privately owned
Be Canadian-owned
How do I find a Digital Advisor to develop my businesses’ Digital Adoption Plan?
The Digital Advisor must be registered on the CDAP Digital Advisor Marketplace to ensure they are qualified to deliver digital advisory services to Canadian SMEs. Digital Advisors are required to provide vendor neutral advice and are subject to CDAP’s Code of Conduct.
Once you have registered for CDAP and signed your grant agreement, you will have access to a CDAP portal, where you can access the Digital advisor marketplace. There are various filters to help you find the type of advisor you need.
How do I apply for the Boost Your Business Technology grant?
1. Create your account
Create a CDAP account here
Verify your email
Verify your identity
2. Confirm your eligibility
Confirm your eligibility in real-time using your Canada Revenue Agency (CRA) My Business credentials.
3. Work with a Digital Advisor
Find a Digital Advisor on the Digital Advisor Marketplace and work with them to develop your Digital Adoption Plan
4. Collect your grant
After finalizing your Digital Adoption Plan with your Advisor, submit your claim for payment, which you will receive within 30 days.
Where can I find more information on the Boost Your Business Technology grant?
Find an overview of the program here.
Find the full program guide here.
How long is the Boost Your Business Technology Grant open for?
CDAP is a four-year program, so you can apply for the program until 2026.
What happens if I apply and I get rejected?
If you attempt to apply but don’t meet the criteria, you will have lost some time, but there are no other penalties.
Note: Applicants violating the terms and conditions of the program (in the case of falsified documents for example), will have their grant agreement terminated and may be required to repay funds.
Is the grant income taxable?
Yes, grant funds are taxable and should be reported on your corporate tax return. Be sure to tell your accountant about any grants you receive.
Can I apply for both the Grow Your Business Online stream and the Boost Your Business Technology stream?
Yes! If you meet the qualification requirements, you can apply for both streams of CDAP.
Summary
The Canada Digital Adoption Program (CDAP) is a grant program that helps businesses digitize their operations and adopt new technologies. CDAP has 2 streams:
Grow Your Business Online: A $2,400 grant that helps businesses establish or improve their e-commerce operations.
Boost Your Business Technology: A grant of up to $15,000, an interest free loan up to $100,000, and a funded work placement up to $7,300 to help businesses develop and carry out a digital adoption plan.
Although the two streams are marketed under the same program (CDAP), they do not ‘speak’ to each other. Grow Your Business Online is administered by Business Link and managed through the Digital Main Street portal. Boost Your Business Technology is administered by Business Development Bank of Canada (BDC) and managed through a Government of Canada portal.
Navigating the acronyms, agencies, criteria, and application process of government programs such as CDAP can be confusing, to say the least. However, these programs are often under subscribed (partially because of the confusion factor involved) and can be a hidden opportunity for your business. If your business meets the criteria and your application is complete, your chances of receiving the grant are high.
Still have questions about CDAP?
Contact Business Link for questions around the Grow Your Business Online stream.
Contact BDC for questions around the Boost Your Business Technology stream.
Looking for other government grant opportunities?
Check out the Government of Canada Business Benefits Finder.