How to Get a $15,000 Grant From The Canadian Digital Adoption Program (CDAP)
What is the Canadian Digital Adoption Program (CDAP)?
The Canadian Digital Adoption Program (CDAP), created by the Government of Canada, was set up to help companies with fewer than 500 employees finance their digital transformation. It aims to help up to 160,000 SMEs adopt new technologies in order to increase their online presence, improve their performance, propel their growth and enhance their competitiveness.
The CDAP focuses on two main areas, namely the improvement of technologies and commercial activities. Each of these components is attributed to a specific grant.
What are the different CDAP grants?
Boost your Business Technology Grant
Boost your Business Technology Grant Amount
The grant can reach a total amount of $15,000 and covers up to 90% of the expenses related to the development of a digital adoption plan.
Boost your Business Technology Goals
With the Boost Your Business Technology grant, the Government wishes to help SMEs modernize their operations using the latest technologies.
It is intended as a financial boost that will improve your cybersecurity, reduce overhead costs, speed up transactions, respond in a timely manner to your customer’s needs with process automation, better inventory management and improve all the logistics in connection with your supply chain.
Boost your Business Technology Eligibility Criteria
To receive the grant, you must be the owner or director of a Canadian-owned, for-profit business with between 1 and 499 employees. Additionally, your business must have generated annual revenue of at least $500,000 in any of the past three years. In order to know the detailed conditions, we invite you to view the full program guide.
Eligible Expenses
- A Detailed Cybersecurity Audit and Execution Plan
- A Complete Digital Plan
It is important to know that several expenses related to cybersecurity are covered by the grant. With the help of experts, you can do a complete audit of your technology park, identify the threats that menace your business and make it vulnerable, and then obtain a detailed plan to improve your cybersecurity.
Professional fees charged by the digital advisor in connection with the development of the digital adoption plan are covered by the CDAP.
Grow Your Business Online Grant
Grow Your Business Online Grant Amount
This microgrant can get you up to $2,400.
Grow Your Business Online Goals
The Grow Your Business Online grant allows the implementation of e-commerce and thereby the increase in online sales. It helps SMEs reach customers directly on the Web. A well-established store can use this financial assistance to increase its points of contact with potential buyers.
Grow Your Business Online Eligibility Criteria
To be eligible, your business must fulfill a series of specific conditions. Among other things, it must be for-profit, have made more than $30,000 in revenue over the past year, offer in-person services to different customers, have at least one employee in addition to the owner, etc.
Eligible Expenses
The CDAP indicates that you can use the grant for the creation of an e-commerce site, the addition of functionalities on an existing e-commerce site, the installation of an e-commerce platform, the services of a consultant which would help you develop digital marketing related to your online store, managing inventory and sales, canvassing, creating promotional offers, maintaining a loyalty program, strengthening cybersecurity, etc. You can consult the complete list of eligible expenses on the CDAP website.
An Additional $100,000 From the BDC
You now have your digital plan in hand and the CDAP grant in the bank. But that grant does not cover all the necessary expenses required to implement the plan? Luckily, the BDC (Banque du Canada) can give you an interest-free loan of up to a total of $100,000.
If your business has revenues between $500,000 and $5 million, your loan will be between $25,000 and $50,000. If your income exceeds $5 million, you may be eligible for a loan between $25,000 and $100,000.
You will have 6 months from the date your digital plan is approved to apply for a BDC loan. The loan term is 5 years with a capital deferral of 12 months (for a total of 6 years). Of course, you will need to meet BDC's creditworthiness requirements to qualify.
Still undecided about the type of grant to request? Try out the grant assessment tool developed by the Canadian Digital Adoption Program. Within seconds, you'll know which grant is right for you.
Mélanie Charlebois
With a Bachelor in Communications, Public Relations and a SEO certification from University of California in Davis, Melanie is very detail oriented, has an immense love for words and a competitive side that makes her always up for a challenge.
