$4 Billion CDAP Grant
The CDAP grant (Canada Digital Adoption Program) is one of the leading business grants funded by the Canadian government. The $4 billion CDAP grant aims to help SMEs leverage e-commerce opportunities, upgrade or adopt digital technologies, and digitize their operations to stay competitive and meet their customers’ needs in the digital marketplace. Since its inception, the Canada Digital Adoption Program has received over 21,000 submissions, and another 10,000 businesses are currently in the pipeline, showcasing the Canadian government’s dedication to bolstering SMEs in the digital realm. Depending on their size, specific needs, and goals, businesses can apply for funding through the Grow Your Business Online or Boost Your Business Technology streams.
Since the CDAP grant officially opened for application in June 2022, Noah Digital has helped over 300 clients with their CDAP grant applications and digital adoption plans. Here is a comprehensive introduction to the Canada Digital Adoption Program (CDAP) and how we can help you apply it.
Table Of Contents
- What Can You Gain with a CDAP Grant?
- What is CDAP Stream 1 Grow Your Business Online Grant?
- What is CDAP Stream 2 Boost Your Business Technology Grant
- Importance of Choosing a CDAP Digital Advisor?
- Boost Your Business Technology Facts
- CDAP Grant FAQs
What Can You Gain with a CDAP Grant?
The CDAP grant offers two tiers: a microgrant, for which most businesses with at least one staff member qualify, and the more substantial “Boost Your Business Technology” grant that comes with tighter eligibility requirements.
| Program Type | Description | Amount |
|---|---|---|
| Stream 1 | $2,400 microgrant to implement digital marketing initiatives | $2,400 |
| Stream 2 | Up to $15,000 to hire an approved advisor to create a CDAP plan | Up to $15,000 |
| Wage Subsidy | $7,300 for a student work placement | $7,300 |
| Interest-Free Loan | Up to $100,000 to implement the plan Up to $200,000 for multiple businesses | Up to $100,000 Up to $200,000 |
What is CDAP Stream 1 Grow Your Business Online Grant?
The Grow Your Business Online grant will help you:
- up to 90,000 small businesses take advantage of e-commerce opportunities.
- eligible businesses will receive a micro-grant of up to $2,400 to help with the costs related to adopting digital technologies.
How Does It Work?
- Step 1: Read the eligibility criteria to ensure the program is right for you.
- Step 2: Connect with your local service provider.
- Step 3: Apply for the grant with help from your service provider.
Source: Government of Canada
CDAP Stream 1 Grow Your Business Online Grant Eligibility
Applications can only be submitted by a small business that meets all of the following criteria:
- Is a for-profit business (including for-profit social enterprises and co-operatives)
- Is a registered or incorporated business and has at least one employee
- Is a consumer-facing business
- Can be accessed by consumers or provides in-person services to consumers
- Must commit to maintaining a digital adoption strategy for six months after participation in the program
- Must consent to participating in follow-up surveys, sharing information with the Government of Canada (ISED and Statistics Canada), and having the name of the business published as a recipient of funding
What are the CDAP Stream 1 Eligible Costs?
- Developing a New E-commerce Website: You can use the grant to create a new e-commerce website or add functionality to your existing website, such as online reservation/booking tools, online ordering systems, electronic payments, or search engine optimization (SEO).
- Installing an E-commerce Platform: The grant can cover costs related to installing an e-commerce platform, including subscription fees and associated expenses.
- Hiring a Consultant for Digital Marketing: You can use the grant to hire a consultant to help with digital marketing strategies for your e-commerce store. However, this should be part of an overall e-commerce implementation plan and not a standalone marketing effort.
- Managing Inventory and Sales: The grant can be used for activities related to tracking and managing inventory and sales, marketing to customers, offering discounts, maintaining a loyalty program, or enhancing cybersecurity using e-commerce software.
- Hardware and Software Costs: You can allocate up to 20% of the total grant amount to cover the costs of hardware and software, as long as these expenses are directly tied to the sale of goods and services online.
Ineligible Costs
- Internet Connectivity: Expenses related to internet connectivity are not covered by the grant.
- Shipping of Goods: Costs associated with shipping goods purchased through the e-commerce platform are not eligible.
- Purchases Made Before Approval: Any purchases made before the grant’s approval are not eligible for reimbursement.
- etc.
For more information, you can download the PDF file.
What is CDAP Stream 2 Boost Your Business Technology Grant?
The Boost Your Business Technology grant offers support to Canadian-owned small and medium-sized enterprises (SMEs) who want to adopt new digital technologies.
The grant covers:
- up to 90% of the eligible cost of retaining the services of a digital advisor to a maximum grant value of $15,000 per SME, to develop a digital adoption plan.
- up to $100,000 non-interest BDC loan
- the 0% loan is limited to $200,000 per “borrowing group”.
- $7,300 wage subsidy to hire talent through a work placement.
How does it work:
Embracing digital transformation through the CDAP Stream 2 program is now more crucial than ever, ensuring businesses remain agile, responsive, and competitive in an ever-changing market.
- Be incorporated federally or provincially, or be a Canadian resident sole proprietor
- Be a for-profit, privately owned business
- Have at least one full-time employee
- Have at least $500,000 in annual revenue as of the closing date of their last fiscal year-end
Confirm Your Business’ Eligibility
With CDAP, you can use your Canada Revenue Agency (CRA) My Business credentials to instantly verify your company’s eligibility.
Please note: You will need to log in to the CRA website with your business credentials. After you log in, you will be redirected to the CDAP portal.
- Step 1: Provide consent to use your Canada Revenue Agency business information for eligibility verification
- Step 2: Enter your My Business Account login information to access the CRA website.
- Step 3: Congratulations! Your eligibility has been verified!
- Step 4: In order to finish your application, provide pertinent business information.
- Step 5: Sign and submit the CDAP grant agreement, obtain access to the Digital Advisor Marketplace, and supply banking details.
Apply to CDAP Stream-2 Grant in 4 easy steps!
| Step | Description |
|---|---|
| Step 1: Create your account | This step involves setting up an account for the application. |
| Step 2: Complete your Digital Needs Assessment | You’ll be required to complete the Digital Needs Assessment (DNA) questionnaire on the CDAP portal. |
| Step 3: Apply for Boost Your Business Technology Grant | After completing the DNA, you can proceed to apply for the Boost Your Business Technology Grant. |
| Step 4: Confirm your eligibility | Verify that you meet the grant’s eligibility requirements. |
| Step 5: Work with a digital advisor to develop your digital adoption plan | Collaborate with a digital advisor to create a plan. |
| Step 6: Submit your claim to receive your grant payment | Send your claim to access the grant payment. |
What is the Process Duration?
For the “Boost Your Business Technology” grant the process is as follows:
- 60-minute application (must be completed by the owner or a director)
- 2 weeks to develop the Digital Adoption Plan
- 10 minutes to submit the CDAP plan and invoice for reimbursement,
- 2-3 weeks to receive the grant.
Importance of Choosing a CDAP Digital Advisor
If you meet the Canada Digital Adoption Program requirements, you will have access to the CDAP Digital Advisor Marketplace, a searchable and filterable list of all registered digital advisors. This user-friendly platform makes it easier to find the right expert for your specific needs. Noah Digital Inc. is a certified CDAP Digital Advisor, and you can schedule a free consultation once you have been an approved applicant.
CDAP Stream 2 Boost Your Business Technology Grant Facts
The Boost Your Business Technology Stream initiative is designed to bolster Canadian SMEs, including small manufacturers and food processors. This program facilitates the adoption of innovative technologies by providing generous grants, which can offset up to 90% of the expenses (capped at $15,000) associated with creating Digital Adoption Plans.
In addition to this financial support, SMEs have the opportunity to benefit from a zero-interest loan, which can amount to as much as $100,000, courtesy of the Business Development Bank of Canada (BDC). Moreover, for recipients who belong to a shared ownership or financial statement group, the total combined 0% loan limit is capped at $200,000 for all of their associated businesses. Furthermore, to encourage the nurturing of young talent, SMEs can avail wage subsidies for youth placements, amounting to a significant $7,300.
Since the inception of this program, over 53,000 SME accounts have been established. The program has witnessed the signing of more than 31,000 grant agreements. Over 10,000 grant claims are currently in the pipeline, and more than 21,000 grants have already been disbursed to deserving businesses. This streamlined support system underscores the commitment to fostering technological advancements within SMEs, aiming for a robust Canadian business ecosystem.
| SME Accounts Created | Grant Agreements | Grant Claims | Grants Disbursed |
|---|---|---|---|
| 53 000+ | 31 000+ | 10 000+ | 21 000+ |
What’s next
Get a free CDAP consultation with Noah Digital CDAP digital advisor to begin your digital transformation and get assistance with the application process.
CDAP Grant FAQs
The amount of financial assistance varies depending on the scope and scale of the project. Generally, SMEs can receive funding for up to 70% of the qualifying costs, with a cap on the maximum grant amount. The actual funding percentage and limit are subject to the specific guidelines of each CDAP scheme.
The application periods and deadlines for CDAP Grant may vary. The deadline for the upcoming application period is March 31, 2025. SMEs are encouraged to check the official websites of relevant agencies regularly for updates on application opening dates and submission deadlines.
Yes, SMEs can combine CDAP grants with other government grants and initiatives aimed at supporting online business growth. By leveraging multiple funding sources, SMEs can maximize their financial support for digital transformation and enhance their overall capabilities in the online marketplace.
The approval process for a CDAP Grant varies depending on the complexity of the project and the volume of applications received. In some cases, SMEs can receive approval within a few weeks, while more extensive projects may require a longer evaluation period.
To participate in CDAP, eligible small and medium-sized businesses (SMEs) can visit the official CDAP website and complete the application process detailed on the site. By doing so, SMEs can access financial assistance to aid in hiring and training employees for digital transformation projects. Don’t let this chance slip by to enhance your online business growth!
A digital adoption plan involves integrating digital technologies and tools into various aspects of a company’s operations, including software applications, cloud computing, data analytics, CRM systems, and automation tools. It also covers strategies for software adoption, employee training, budgeting, and implementation timelines.
For Stream 1, yes. For Stream 2, only government-approved digital advisors like Noah Digital can provide services.
For Stream 1, you’re assigned an E-Commerce advisor for at least one hour. Then you’re free to hire a consultant or agency.
For Stream 2, after approval applicants will have access to the CDAP Digital Advisor Marketplace, which is a searchable and filterable list of all registered digital advisors.
Once the SME is confirmed as eligible, they will have 6 months to accept the terms of the CDAP Grant Agreement. Following that, they will have 9 months to submit a Digital Adoption Plan and invoice from a listed advisor to receive the Boost Your Business Technology grant.
The government grant has been a source of confusion for many. In simpler terms:
1. If your business reported a revenue of $30,000 in the last tax year and is a registered entity in Canada, you probably qualify for the $2,400 Stream 1 grant. This grant offers flexibility in how you can use it (see details at the SBBC link).
2. For businesses that have reported revenues exceeding $500k in any of the last three years, there’s an option to apply for the $15,000 CDAP Stream 2. This is different from the previous Launch Online and SMB Grants in terms of its rigorous criteria on allowable expenses. Primarily aimed at formulating a plan, successful recipients of this grant are also placed on a fast track to obtain a 0% loan for the plan’s execution.
Not for CDAP Stream 2, but you still have time – this grant is open through 2025. Until then, apply for CDAP Stream 1.