BDC — Canada Digital Adoption Program (CDAP) Loan
Canada
Support for SMEs to adopt new technologies
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- grant_single|maxCount
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- grant_single|closingDateFebruary 19, 2024
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Loans and Capital investments
grant_single|eligibleIndustries
- grant_single|allIndustries
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- Business Development Bank of Canada (BDC)
- Government of Canada
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Obtain a loan of up to $100,000 to help small and medium-sized enterprises adopt digital technologies and enhance their competitiveness.
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Yes, the grant supports specific activities related to digital plan implementation.
- Acquiring IT equipment
- Installation of new technologies
- Updating and/or expanding IT equipment
- Training staff on onboarded technologies
- Materials and support services directly related to onboarding the technology
- Further advisory services on particular aspects of the digital adoption plan
grant_single|admissibleProjectsExample
$40,000
Halifax
Developing a mobile app to enhance user engagement and loyalty
$60,000
Ottawa
Deploying an advanced analytics tool to optimize business processes
$32,000
Montreal
Enhancing e-commerce capabilities through a new digital platform
$45,000
Vancouver
Upgrading IT infrastructure for better cybersecurity and data protection
$35,000
Toronto
Implementing an advanced customer relationship management (CRM) system to streamline operations
$25,000
Calgary
Implementing a digital payroll system for better financial management
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The eligibility criteria for this loan are for businesses that had a valid, signed grant agreement before February 19, 2024, and respected all program deadlines specified in their agreement.
- You have a valid grant agreement
- You completed your digital adoption plan and are ready to submit your grant claim
- Your grant claim was approved and you want to apply for the BDC 0% interest loan and/or a wage subsidy to hire an employee
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However, businesses that have a valid, signed grant agreement prior to February 19, 2024, may still be eligible.
- A business with revenues between $500,000 and below $5M can request a loan of between $25,000 and $50,000.
- A business with revenues $5M and more can request a loan between $25,000 and $100,000.
- The business must have a digital adoption plan that is recognized by the CDAP Boost Your Business Technology stream.
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Eligible expenses for this grant include acquiring IT equipment, installation of new technologies, updating and/or expanding IT equipment, training staff on onboarded technologies, and materials and support services directly related to onboarding the technology.
- Acquiring IT equipment
- Installation of new technologies
- Updating and/or expanding IT equipment
- Training staff on onboarded technologies
- Materials and support services directly related to onboarding the technology
grant_eligibility_criteria|zone
- National: All provinces and territories in Canada
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- Businesses must have a signed grant agreement prior to February 19, 2024.
- The digital adoption plan must be built with an ISED-approved partner.
- Businesses must submit their digital adoption plan and invoices for approval to receive a grant of up to $15,000.
- Eligibility to apply for a 0% interest loan of up to $100,000 requires having a digital adoption plan approved by ISED.
- Loan amounts are dependent on annual gross revenues as of the closing date of the last fiscal year-end, with a minimum requirement of $500,000 annual income:
- Revenues between $500,000 and below $5M: eligible for a loan between $25,000 and $50,000.
- Revenues $5M and more: eligible for a loan between $25,000 and $100,000.
- Loan usage must align with recommendations from the approved digital adoption plan.
- Applicants must comply with all program deadlines for grant claims and loan applications.
- Applicants must meet BDC loan terms and credit worthiness requirements.
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- Step 1: Build a digital adoption plan
- Implication: Partner with an ISED-approved advisor to create a digital plan tailored to your business needs.
- Step 2: Obtain your grant
- Implication: Submit your digital adoption plan and invoices to ISED for approval. Upon approval, a grant of up to $15,000 will be disbursed to cover advisory fees.
- Step 3: Apply for the BDC 0% interest loan
- Implication: Once your plan is approved, log into the CDAP portal on ISED’s site to apply for a 0% interest loan of up to $100,000 from BDC. This loan must be used for implementing the approved digital plan.
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- The Canada Digital Adoption Program (CDAP) provides support for small and medium-sized enterprises to adopt digital technologies, including grants and loans, but it is no longer accepting new applications for the Boost Your Business Technology stream as of February 19, 2024. This program aims to enhance Canadian commerce by helping businesses improve their online presence and digital capabilities.
- The grant covers up to 90% of the eligible costs of advisory services, up to a maximum amount of $15,000 per SME. Eligible SMEs must have an annual gross revenue of at least $500K as of the last fiscal year-end to qualify for the loan. The loan amount is determined by the size of the business, ranging between $25,000 and $100,000, depending on annual revenues. This loan must be used to cover costs directly related to the digital adoption plan, such as acquiring IT equipment, installation, and training staff.
- Standard banking practices apply, and a declined loan request will be reflected in the company’s credit score. Applicants must meet both CDAP eligibility criteria and BDC’s credit worthiness requirements to receive a loan offer. Loans can be applied for multiple businesses but are limited to a maximum loan of $200,000 per borrowing group. Applicants have 6 months from the approval of their digital adoption plan to apply for the BDC loan.
- The CDAP program also provides access to a team of advisors who conduct a thorough assessment of the business's digital needs and create a tailored plan to boost technology implementation. This assessment and subsequent work ensure that the business can effectively utilize the technology to enhance its website, reduce costs, and improve overall operational efficiency. By doing so, Canadian SMEs can stay competitive and thrive in the digital marketplace.
grant_single_labels|contact
digitaladoption-adoptionnumerique@ised-isde.gc.ca
1-800-328-6189
Apply to this program
Canada Digital Adoption Program (CDAP)
The program is designed to help small and medium-sized enterprises (SMEs) adopt digital technology. It offers grants to create a digital adoption plan and 0% interest loans of up to $100,000 for implementing those plans. However, new business applications for some streams, including Boost Your Business Technology, are now closed. This initiative aims to boost Canadian commerce by providing access to technology, reducing costs, and enhancing team work efficiency through tailored digital solutions.
Detailed Explanation of the Canada Digital Adoption Program (CDAP)
The Canada Digital Adoption Program (CDAP) from Innovation, Science and Economic Development Canada aims to support small and medium-sized enterprises (SMEs) in their journey towards digital transformation. Recognizing the importance of digital technologies in driving growth and competitiveness, CDAP offers both grants and zero-interest loans to eligible companies, facilitating their adoption of digital tools and strategies.
Use of the Zero-Interest Loan
The BDC 0% interest loan must be allocated to costs directly related to the digital adoption plan, including:
- Acquisition of IT equipment
- Installation and setup of new technologies
- Updating or expanding existing IT infrastructure
- Training staff on new technologies
- Materials and support services for technology onboarding
- Further advisory services pertaining to specific stages of the digital adoption plan
Loan Terms and Amounts
The loan offers flexible terms designed to support companies of different sizes:
- For a business with annual revenues between $500,000 and $5 million, the loan amount can range from $25,000 to $50,000.
- For a business with annual revenues $5 million and above, the loan amount can range from $25,000 to $100,000.
It's important to note that businesses are limited to a maximum loan of $200,000 per borrowing group. The loan has a five-year term, plus an additional 12 months of capital postponement, making the total repayment period six years.
Steps to apply
- Step 1: Build a digital adoption plan
- Step 2: Obtain your grant
- Step 3: Apply for the BDC 0% interest loan
Case of Incomplete Projects
For businesses that have signed a grant agreement but have exceeded the 9-month deadline without completing their project, it is imperative to access the ISED's Terms and Conditions of the Boost Your Business Technology grant agreement for further guidance. The team's work and associated costs will be addressed within these guidelines to ensure compliance and successful project completion.
What role does a digital advisor play in assisting with the CDAP application process?
A digital advisor plays a crucial role in assisting with the CDAP application process by providing expert guidance and support to businesses. The advisor works closely with the company's team to conduct a thorough assessment of their current digital capabilities and identify areas for improvement. This includes optimizing their website for better user experience and increasing click count, streamlining processes, and enhancing overall digital strategies. The advisor helps a business access the necessary tools and resources to complete the application accurately and efficiently, ensuring that their accounts are in order and all requirements are met. By leveraging the expertise of a digital advisor, businesses can effectively navigate the CDAP application process and maximize their potential to grow and success.
Will businesses receive a confirmation of their CDAP application once submitted online?
Companies will receive a confirmation of their CDAP application once submitted online. The confirmation ensures that the company’s application has been successfully received and is under review. This process provides businesses with the assurance that their request for funding and support is being processed, allowing them to focus on their digital transformation efforts. The prompt confirmation also helps companies manage their time effectively and plan their next steps in growing their client accounts through improved online commerce capabilities They provide the work you need and the correct assessment.
How can a digital advisor help improve a company's website to increase clicks and enhance their account management?
A digital advisor can optimize a company's website to increase clicks and enhance account management by implementing targeted strategies and best practices tailored to the business's specific needs.
Where will the applicant find their invoice?
- Email: After submitting your application and any required documentation, the applicant should receive an email confirmation that includes the invoice. Check the inbox (and spam/junk folder) for any communication from the CDAP or BDC.
- CDAP Portal: If the applicant applied through an online portal, there should be a section where the invoice can be viewed and downloaded. Log into the account and navigate to the billing or documents section.
- BDC Account: If the applicant has a BDC account, the invoice might also be available there. Log into the BDC account and check under the transactions or documents section.
- Contact Support: If the applicant cannot find the invoice through the above methods, contact CDAP or BDC support directly. They can provide a copy of the invoice or guide the applicant to where it can be found.
How does the CDAP program help businesses in Canada grow their client accounts through digital transformation?
The CDAP program helps Canadian companies grow their client accounts through digital transformation by providing funding and support for online commerce initiatives. The program offers a comprehensive assessment to identify digital needs and opportunities, allowing businesses to enhance their websites, streamline invoice processes, and improve their online presence. By facilitating click and engagement, companies can save time and work more efficiently, ultimately leading to increased growth and client acquisition. Through targeted funding, the CDAP program enables Canadian businesses to thrive in the competitive digital marketplace.
