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Digital Adoption

Small start-up businesses are prevalent in Canada, with approximately 68.8% of the labor force employed in small business start-ups, according to the official Canadian government’s statistics from the labor force survey. Moreover, a review moose article by author Szabolcs Szecsei mentioned that approximately 95,000 small businesses are established in Canada each year. To support these small businesses in embracing advanced technology and digitalization, the Canadian government has introduced the Canada Digital Adoption Program (CDAP).


What is CDAP?

The Canada Digital Adoption Program, also known as CDAP, is an initiative launched by the Canadian government to help small and medium-sized businesses (SMEs) adopt digital technologies and methods that will increase opportunities for young Canadians. With $4 billion in funding, the program offers SMEs grants and consulting services worth $1.4 billion, as well as interest-free loans of up to $2.6 billion from the Business Development Bank of Canada (BDC) to help cover the costs of implementing digital transformation plans.

The program aims to assist companies in modernizing or adopting digital technology, digitizing their processes, and utilizing e-commerce opportunities to remain competitive and meet the demands of their customers in the online market.


The Canada Digital Adoption Program provides funding and opportunities for two programs: “Grow Your Business Online” and “Boost Your Business Online”.


Grow Your Business Online

The “Grow Your Business Online” program provides eligible small businesses with up to $2,400 to cover expenses related to transitioning to digital technology. Local and regional service providers will be responsible for disbursing the funds. Additionally, these providers will establish a network of e-commerce experts to support small businesses in their digital transformation efforts. Accessing this network is easy for businesses interested in applying for this program.


To be eligible for the “Grow Your Business Online” program and access its funding opportunities, your business must meet the following criteria:
  • Your business must be profitable and registered.
  • Your business must sell products or services directly to customers through digital channels.
  • Your business should have at least one employee.
  • You should be ready to adopt digital strategies and tools for at least six months.


Boost Your Business Technology: Funding for Small and Medium-Sized Enterprises to Implement Digital Technology

Boost Your Business Technology is an award program that supports small and medium-sized businesses (SMEs) with Canadian ownership in implementing new digital technology. Eligible businesses can use the award to cover the cost of a digital advisor who will work with them to provide digital strategies and tactics to achieve their goals and increase their competitiveness in the digital economy.

Digital Adoption

To be eligible for the Boost Your Business Technology program and access its funding opportunities, your business must meet the following criteria:
  • The business must be structured as a sole proprietorship, partnership, or corporation in Canada.
  • The business must be profitable and privately owned.
  • The business must have between 1 and 499 employees.
  • The business must have had at least $500,000 in revenue in three tax years.


How can I determine if my company qualifies for this grant? Your company can qualify for this grant if it meets the following requirements:
  • It is a Canadian resident, either a nationally or provincially recognized corporation or a sole proprietor.
  • It operates as a privately owned, for-profit entity.
  • It has 1 to 499 full-time equivalent employees.
  • It has earned a minimum annual revenue of $500,000 in one of the three most recent tax years.


The Canadian digital adoption program has certain exclusions and the following types of companies are not eligible for the grant:
  • Franchises, large corporations, or recognized non-profit organizations
  • Representatives of multi-level marketing companies
  • Property management companies


To apply for Canada’s digital adoption program, follow these steps:
  1. Register for the program
  2. Build a plan for your digital transformation
  3. Get approval for your plan
  4. Apply with Business Development Bank of Canada (BDC) to receive funding and support for implementing your digital transformation plan.


Registration Process for Canada’s Digital Adoption Program (CDAP)

Before registering for CDAP, you should carefully review the program details to determine whether your business meets all of the eligibility criteria and any other necessary requirements. Once you confirm that your business meets the necessary criteria, you can easily register on the Innovation Science and Economic Development Canada (ISED) website.


Develop a Plan

Once you have registered your business for Canada’s digital adoption program, the next crucial step is to develop a comprehensive plan that meets the approval criteria set forth by Innovation Science and Economic Development Canada (ISED). Your plan needs to fulfill their requirements before proceeding to the next step of the registration process. Without ISED approval, your application will not be considered for this program.


Obtaining Approval

The third and crucial step of the registration process is obtaining approval from the Innovation, Science, and Economic Development (ISED) department. To gain approval, you will be required to provide essential details and an invoice for payment. After approval, you can receive advisory fees of up to $15,000 to help you in your digital transformation journey.


Apply for the Loan with BDC

Once you have completed the registration process for Canada’s Digital Adoption Program (CDAP), the final step is to apply for the loan. You can apply for up to $100,000 based on the approval you received from the Innovation, Science, and Economic Development (ISED) program.

Congratulations on completing the CDAP registration process! You can now take advantage of the program’s funding opportunities to bring your business up to speed with the latest technological advancements and digital initiatives.

Digital Adoption

Advantages of Participating in Canada’s Digital Adoption Program (CDAP)

There are several benefits to applying for the Canada Digital Adoption Program (CDAP), including direct access to experts and professionals. The program also covers 90% of the cost of hiring digital professionals, which can help increase your business’s ability to compete in the market.

Additionally, the program can provide access to grants for up to 12 months, which can be used to help your business flourish and make a profit. By taking advantage of these loans, your business can expand its network and market share, ultimately leading to increased sales and success.


In summary,

The Canada Adoption Program (CAP) is designed to support small and medium-sized start-up companies with their digital transformation, enabling them to enter the modern technological world. This program offers two funding opportunities: to grow your business online and to boost your business online. These funding opportunities have significant potential to enhance Canada’s IT industry.

In summary, this blog has provided an overview of the Canada Adoption Program (CDA), including its funding opportunities, eligibility criteria, restrictions on applying, and the benefits of this program for small start-up companies.