BDC — Canada Digital Adoption Program (CDAP) Loan
Last Update: July 24, 2025
Canada
Support for SMEs to adopt new technologies
BDC — Canada Digital Adoption Program (CDAP) Loan at a glance
Eligible Funding
- Max. $100,000
Timeline
- Closing date : February 19, 2024
Financing Type
Loans and Capital investments
Eligible Industries
- All industries
Grant Providers
- Business Development Bank of Canada (BDC)
- Government of Canada
Program status
Closed
Overview of the BDC — Canada Digital Adoption Program (CDAP) Loan program
Obtain a loan of up to $100,000 to help small and medium-sized enterprises adopt digital technologies and enhance their competitiveness.
Financing terms and conditions
- Grant covering up to 90% of advisory service fees, up to a maximum of $15,000 per SME.
- 0% interest loan available for up to $100,000, with a 5-year term and an optional 12-month postponement of principal payments (total of 6 years).
- Loan amount between $25,000 and $50,000 for businesses with annual revenues between $500,000 and less than $5 million; between $25,000 and $100,000 for businesses with annual revenues of $5 million or more.
- Maximum total borrowing capped at $200,000 per borrowing group.
Eligible projects & activities
- Development and implementation of a digital adoption plan to enhance business technology.
- Acquisition and integration of new digital technologies and IT equipment.
- Upgrade or expansion of existing digital infrastructure to improve operational efficiency.
- Staff training initiatives related to the adoption of new digital tools and systems.
- Engagement of advisory services to support digital transformation strategies.
Examples of admissible projects:
$ 35,000
Implementing an advanced customer relationship management (CRM) system to streamline operations
$ 25,000
Implementing a digital payroll system for better financial management
$ 32,000
Enhancing e-commerce capabilities through a new digital platform
$ 40,000
Developing a mobile app to enhance user engagement and loyalty
$ 60,000
Deploying an advanced analytics tool to optimize business processes
$ 45,000
Upgrading IT infrastructure for better cybersecurity and data protection
Eligibility criteria of the BDC — Canada Digital Adoption Program (CDAP) Loan program
- The business must have a valid, signed grant agreement under the CDAP Boost Your Business Technology stream, dated before February 19, 2024.
- The applicant must have completed a digital adoption plan that is approved by Innovation, Science and Economic Development Canada (ISED).
- The business must have annual gross revenues of at least $500,000 as of the closing date of its last fiscal year-end.
- The loan must be used exclusively to implement recommendations outlined in the approved digital adoption plan.
Who is eligible?
- Small and medium-sized enterprises (SMEs) in Canada
Who is not eligible
- Businesses that did not sign a grant agreement before February 19, 2024.
- Companies that started but did not complete their grant application or sign a grant agreement by the specified deadline.
- Businesses with expired grant agreements.
Eligible expenses
- Acquisition of IT equipment necessary for digital transformation.
- Installation of new digital technologies.
- Updating or expanding existing IT infrastructure.
- Training staff on newly onboarded technologies.
- Materials and support services directly related to adopting technology.
- Further advisory services specifically related to the digital adoption plan.
Eligible geographic areas
- Businesses located anywhere in Canada.
Eligibility criteria of the BDC — Canada Digital Adoption Program (CDAP) Loan program
- 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.
How to apply to the BDC — Canada Digital Adoption Program (CDAP) Loan program
1
Assess Eligibility
- Ensure your business has a valid grant agreement signed before February 19, 2024.
- Confirm that your digital adoption plan is complete.
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.
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.
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.
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.
Additional information
- Once your digital adoption plan is approved, you have 6 months to apply for the BDC 0% interest loan.
- If you are declined for the loan, standard banking practices apply and this could affect your credit score.
- Choosing BDC as your advisory service provider does not affect your eligibility for the zero-interest loan; all businesses are treated equally.
- Applicants must adhere strictly to the program deadlines outlined in their grant agreement, as extensions are not permitted.
Contact Business Development Bank of Canada (BDC)
digitaladoption-adoptionnumerique@ised-isde.gc.ca
1-800-328-6189
Apply to this program
Grant and FundingOpen
Canada
Financial support for technology innovations
Tax CreditsOpen
Canada
Scientific research and experimental development tax credit
Tax CreditsOpen
Canada
Incentivize Canadian companies to invest in clean technology
Tax CreditsOpen
Canada
Offer up to 30% refundable credit for capital investments in new clean technologies in Canada
Partnering and CollaborationGrant and FundingOpen
Canada
Strategic Innovation Fund supports transformative Canadian economic investments
Grant and FundingOpen
Canada
Supports Canadian SMEs in accessing advanced AI compute resources
Grant and FundingOpen
Canada
Funding to enhance supply chains with AI
Wage Subsidies And InternsOpen
Canada
Money to hire a student
Open
Canada
Supports testing innovative AI prototypes for Canadian government needs
Grant and FundingOpen
Canada
Financial assistance to work in collaboration on innovation projects