BDC — Canada Digital Adoption Program (CDAP) Loan
Canada
Support for SMEs to adopt new technologies
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
grant_single|deadlines
- grant_single|closingDateFebruary 19, 2024
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Business Development Bank of Canada (BDC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Obtain a loan of up to $100,000 to help small and medium-sized enterprises adopt digital technologies and enhance their competitiveness.
grant_single_labels|projects
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
grant_single_labels|admissibility
The eligibility for the Canada Digital Adoption Program (CDAP) Boost Your Business Technology stream is based on specific conditions regarding signed agreements and completed plans.
- The applicant must have a valid, signed grant agreement before February 19, 2024.
- The applicant must have completed their digital adoption plan and be ready to submit their grant claim.
- If the grant claim is approved, the applicant may apply for the 0% interest loan and/or a wage subsidy to hire an employee.
- The business must have at least $500,000 in annual income as of the last fiscal year-end if applying for the 0% loan.
- The business's gross revenues determine the potential loan amount eligibility.
grant_eligibility_criteria|who_can_apply
Eligible applicants for the Canada Digital Adoption Program (CDAP) 'Boost Your Business Technology' stream are small and medium-sized enterprises (SMEs) that have already signed a grant agreement prior to February 19, 2024. In particular, those who:- Have a valid grant agreement.- Have completed their digital adoption plan and are ready to submit their grant claim.- Have had their grant claim approved and wish to apply for the BDC 0% interest loan and/or a wage subsidy to hire an employee.Applicants who are new, have an incomplete or unsigned grant agreement, or have an expired grant agreement are considered non-eligible.
grant_eligibility_criteria|eligible_expenses
The CDAP grant assists small and medium-sized enterprises in adopting digital technologies effectively. It is designed to support businesses in various activities related to enhancing digital capabilities.
- Building a comprehensive digital adoption plan with an approved partner.
- Acquiring new IT equipment and updating existing technology infrastructure.
- Installing advanced technologies to improve business operations.
- Training staff on newly integrated digital technologies.
- Engaging further advisory services focused on specific aspects of the digital adoption plan.
grant_eligibility_criteria|zone
The grant covers expenses directly related to the implementation of the digital adoption plan.
- 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_labels|criteria
- 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.
grant_single_labels|register
Here are the steps to apply for the Canada Digital Adoption Program (CDAP) and submit an application:
- Step 1: Assess Eligibility
- Ensure your business has a valid grant agreement signed before February 19, 2024.
- Confirm that your digital adoption plan is complete.
- Step 2: Develop Digital Adoption Plan
- Engage with an ISED-approved digital advisor to create your digital adoption plan.
- Ensure the plan addresses digital technology strategies relevant to your business needs.
- Step 3: Submit Digital Adoption Plan
- Log in to the CDAP portal to submit your completed digital adoption plan and related invoices to ISED.
- Await approval from ISED for the plan and the grant disbursement.
- Step 4: Apply for BDC 0% Interest Loan
- Once your digital adoption plan is approved, log back into the CDAP portal.
- Access the BDC loan application link provided in the portal.
- Complete and submit the loan application within 6 months of plan approval.
- Step 5: Utilize Loan for Implementation
- Use the loan funds to implement the recommendations from your digital adoption plan.
- Submit necessary documentation for the expenses covered by the loan.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- A business can opt to only participate in the grant portion of CDAP without accepting the 0% interest loan.
- A loan decision can impact a business's credit score negatively if declined, as part of the consent during the application process.
- The 0% loan offer has a term of 5 years with the possibility to postpone principal payments for 12 months, totaling 6 years.
- A borrowing group is limited to a maximum loan of $200,000 when applying for multiple businesses.
- Companies that do not meet BDC’s creditworthiness criteria may still be declined for a loan even if they pass program eligibility.
- You have 6 months post-approval of your digital adoption plan to apply for the BDC loan.
grant_single_labels|contact
digitaladoption-adoptionnumerique@ised-isde.gc.ca
1-800-328-6189
Apply to this program
Boost Your Business Technology with CDAP
The Canada Digital Adoption Program (CDAP) offers small and medium-sized enterprises (SMEs) the opportunity to enhance their digital capabilities by providing financial aids such as grants and interest-free loans. This initiative, led by Innovation, Science and Economic Development Canada (ISED), supports businesses in devising and implementing digital adoption plans before the application intake closure.
Understanding the Canada Digital Adoption Program (CDAP) and Its Opportunities
Launched by Innovation, Science and Economic Development Canada (ISED), the Canada Digital Adoption Program (CDAP) aims to propel small and medium-sized enterprises (SMEs) towards a future enriched with digital transformation. The Boost Your Business Technology stream of CDAP formerly accepted applications from eligible businesses keen on harnessing digital technologies to not only stay competitive but also meet the ever-evolving demands of modern business landscapes.
The CDAP primarily targets Canadian SMEs that outlined their commitment to digital innovation by signing a grant agreement with ISED prior to the pivotal date of February 19, 2024. This sequence of actions affirmed their eligibility for a prospective grant, capped at $15,000, designed to mitigate up to 90% of advisory service expenses related to digital adoption strategizing. Furthermore, these businesses were entitled to seek a 0% interest loan, extending to a substantial $100,000, to ensure the seamless implementation of the digitally-grounded business plans they formulated.
The entire process is intricately structured to include essential phases, beginning with the drafting of a comprehensive digital adoption plan. This plan has to be architected in collaboration with ISED-approved partners, offering expertise and insight critical to fostering effective digital transformations. The Business Development Bank of Canada (BDC), forming part of this network, extends its advisory arm to lend a practical, hands-on approach, ensuring businesses not only design high-impact plans but also remain aligned with their overarching strategic ambitions.
The next milestone for SMEs under CDAP is the submission and approval of their digital adoption plans by ISED. Once approved, businesses receive a grant of up to $15,000 dedicated to covering advisory costs, followed by the opportunity to engage in the BDC’s offering of a $100,000 interest-free loan. This financial backing is pivotal for businesses eager to convert their digital visions into reality, funding critical aspects such as IT equipment acquisition, technology installations, and staff training sessions.
Moreover, the no-interest loan provision under BDC features favorable terms, stretching across a five-year period with an optional twelve-month capital payment deferral. The extent of loan eligibility is predicated on pre-defined revenue benchmarks, with loan amounts ranging between $25,000 and $100,000, subject to the annual revenue bracket of the applicant's business.
While the application process for the Boost Your Business Technology stream has concluded, businesses holding valid grant agreements are cautioned to adhere to the program's deadlines to benefit from the slated financial provisions. Maintaining these timelines ensures that businesses are not only compliant but also tapping into the array of opportunities to bolster their digital infrastructure and operational efficiencies.
This structured initiative, while currently unavailable to new applicants, underscores a critical thrust towards digital modernization, reflecting a strategic shift within Canada's economic landscape. For businesses that capitalized on this program, the grants and loans serve as vital lifelines, empowering them to not merely adopt digital technologies but also carve out a sustainable path in increasingly competitive environments.
For the broader business community, this illustrates the significance of timely applications and proactive engagement with digital transformation opportunities, helping shape a framework where technological advancement is synonymous with economic growth and innovation. Through programs like CDAP, Canada continues to pave the way for a digitally inclusive future, fostering resilience and competitive advantage among its small and medium-sized enterprises.
