The Canada Digital Adoption Program (CDAP) is a federal initiative launched in 2022 to assist small and medium-sized enterprises (SMEs) in Canada, including café’s and restaurants, with adopting digital technologies. Administered by Innovation, Science and Economic Development Canada (ISED), CDAP aims to enhance the digital capabilities of businesses, improve their competitiveness, and provide employment opportunities for young Canadians.
Program Streams
CDAP comprises two main streams:
- Grow Your Business Online: This stream offers microgrants of up to $2,400 to small businesses to help with the costs associated with adopting digital technologies, such as developing e-commerce capabilities or acquiring POS systems. Additionally, businesses receive support from a network of e-commerce advisors to assist in their digital transformation efforts.
- Boost Your Business Technology: This stream provides grants of up to $15,000 to SMEs for developing a digital adoption plan with the help of approved digital advisors. Upon approval of the plan, businesses may also access interest-free loans of up to $100,000 through the Business Development Bank of Canada (BDC) to implement the recommended technologies. Furthermore, businesses can receive wage subsidies of up to $7,300 to hire youth with digital skills to support the adoption process.
Eligibility Criteria
Eligibility for CDAP varies between the two streams:
- Grow Your Business Online: Businesses must be for-profit, registered or incorporated, consumer-facing, and have at least one employee or $30,000 in annual revenue.
- Boost Your Business Technology: Businesses must be privately owned, for-profit, incorporated federally or provincially, have between 1 and 499 full-time equivalent employees, and have at least $500,000 in annual revenue in one of the previous three tax years.
Program Status
As of February 2024, the “Boost Your Business Technology” stream has been closed to new applications due to full subscription. However, the “Grow Your Business Online” stream remains open, allowing eligible businesses to apply for microgrants and receive support from e-commerce advisors.
Conclusion
The Canada Digital Adoption Program represents a significant investment by the federal government to support the digital transformation of SMEs across the country. By providing financial assistance and expert guidance, CDAP aims to equip businesses with the tools and skills necessary to thrive in the digital economy.
