For businesses to stay competitive in an ever-growing technological era, businesses must have a digital presence. Being proactive with adopting cutting edge digital tools provides businesses access to a global market and helps them remain competitive and grow. Through the Canadian Digital Adoption Program (CDAP), the Canadian Government provides $4 billion for small and medium-sized enterprises (SMEs). With two separate streams, the grow your business online stream and the boost your business technology stream, businesses looking to enter the online environment, boost their e-commerce presence, and digitalize their business operations can obtain funding.
Type of Funding Available
The Boost Your Business Technology stream offers a grant to eligible businesses. This grant can cover up to 90% of the eligible costs at a maximum of $15,000 per business of a registered Digital Advisor to develop the digital adoption plan.
Businesses can also apply for a 0% interest loan from the Business Development Bank of Canada (BDC) to cover the costs of acquiring new technology. If your business requires funding to implement the recommendations of the Digital Advisor, the BDC can cover the costs of:
- Up to $100,000 as a loan
- 0% interest loan
Offered as an online application
The loan amount changes depending on specific business factors:
- If your business has revenues between $500,000 and below $5M, a loan of between $25,000 and $50,000 is applicable
- If your business revenues are $5M and more, then the business could request a loan of between $25,000 and $100,000
The pay-back term for the loans is 5-years and a 12-month capital postponement, making it six years. You can apply for a loan with the BDC up to 1 year after completing an approved digital adoption plan.
There is also access for applicants to leverage the help of post-secondary students and recent graduates through a subsidized work placement. Businesses can apply for a wage subsidy of up to $7,300 to hire talent as a part of the Boost Your Business Technology grant.
The Canadian Digital Adoption Program also offers the “Grow Your Business Online” stream, consisting of micro-grants to help adopt digital technologies and attract customers in a digital marketplace.
Some requirements for the Boost your Business Technology stream include:
- Must be incorporated federally or provincially, or be a Canadian resident sole proprietor
- Be a for-profit, privately owned business
- Have between 1-499 full-time equivalent employees
- Have at least $500,000 in annual revenues in one of the previous tax years
- A Canadian-controlled Private Corporation (CCPC), defined by the Canada Revenue Agency
For costs to be eligible under the Boost your Business Technology stream, the applicant should be directly associated with a registered Digital Advisor to develop the Digital Adoption Plan.
- Any fees, commissions, and charges by the organization providing the Digital Advisor services or registered Digital Advisor to produce the plan
- Applicable federal and provincial sales taxes applied to fees and commissions charged by the Digital Advisors for the sole purpose of producing a Digital Adoption Plan for the applicant
Digital Needs Assessment (DNA)
Businesses should assess the digital maturity of their business to identify their businesses’ current standing concerning digital advancement. Evaluating your digital maturity can help you figure out what exactly your business is currently in need of and wants to accomplish by creating a digital adoption plan under the Boots your Business Technology Stream. Some reasons to assess your digital maturity:
- Help identify your business’s current digital capabilities and needs
- Easily define your digital roadmap
- Discover the potential improvements
Evaluate and prioritize investments
The deadline for a completed package submission for the Grow Your Business Online stream should be submitted by August 6, 2021 by 5:59P.M. Pacific Daylight Time.