Canada Digital Adoption Grants (CDAP) for SMBs
Updated: Sep 1
The Canada Digital Adoption Program (CDAP Grant) is a new initiative launched by the Government of Canada to help small and medium-sized businesses (SMEs) across the country improve their digital skills and capabilities. The program provides funding and support to SMEs to help them adopt new digital technologies and tools that can improve their competitiveness and growth potential. Here are all the details you need to know about the CDAP program:
Program 1 - $2,400 Government Grant
Eligibility: The microgrant offers up to $2,400 to aid in the adoption of new technologies and e-commerce strategies.
To qualify, applicants must be a for-profit consumer-facing organization in Canada with at least one employee (other than the owner) OR had at least $30,000 in annual revenue in the previous fiscal year. For Businesses in operation less than 80 weeks who have not yet filed their first year’s taxes or received their CRA Notice of Assessment, the Business must have a gross revenue of at least $30,000 in the last 12 months of operations or since incorporation/registration. The organization must commit to a six-month digital adoption strategy after the cost is reimbursed.
The business will have to pay for the costs for the designated purpose of the grant within three months after the approval and submit invoices and payment receipts to get reimbursements from the grants.
The eligible reimbursement costs for the $2,400 government grant include implementing or improving digital e-commerce software or other tools and systems, performing search engine optimization (SEO) for an existing website, developing a new e-commerce website, upgrading an existing e-commerce site for added functionality (such as new plugins or features), implementing or improving back-office solutions in support of an e-commerce strategy, conducting current or future advertising on social media (on any platform), implementing a customer database or Customer Relationship Management (CRM) system or software, launching digital marketing initiatives related to the e-commerce store (which may involve hiring a third party), and acquiring hardware (as well as accompanying software) to support the e-commerce plan.
Program 2 - Boost Technology Grant - $15,000 Government Grant plus a $100K interest-free loan
Eligibility: To apply for the $15,000 Government Grant plus $100,000 interest-free loan program requires that the business is Canadian-owned, for-profit, has between 1 to 499 employees and has had at least $500,000 in annual revenue in one of the last three years. The $15,000 grant is intended to support the development of a digital adoption plan, which can be used to apply for zero-interest financing of up to $100K. In addition to this, the program offers funding of $7,300 for work placements to assist businesses in implementing the plan. The $100,000 loan can be used to implement various systems to increase productivity, consolidate back-office software, implement cybersecurity tools, speed up transactions, and develop and implement other business tools and systems.
The CDAP program is a fantastic opportunity for Canadian SMEs to take advantage of new digital technologies and tools to drive growth and competitiveness. MyDreamFinance can help your business with every step of the application process for the CDAP program.