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mosaic of small businesses

Small businesses are the backbone of the Canadian economy and the heart of our communities across the country. As small businesses adapt to the digital economy and the lasting impacts of the COVID-19 pandemic, the Government of Canada is working to help them continue to grow, thrive, and create good jobs.

Program overview

The Canada Digital Adoption Program (CDAP) will help Canadian small- and medium-sized businesses grow their online presence and upgrade or adopt digital technologies. This investment, which will provide $4 billion over four years, will support up to 160,000 small businesses and create good middle-class jobs across the country, including thousands of jobs for young Canadians.

Under the CDAP, Canadian small- and medium-sized enterprises (SMEs) will be able to assess their digital readiness and apply for grants and loans online. This funding will help them 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. 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.

Application information

Applications for Grow Your Business Online - Canada Digital Adoption Program 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
  • Is a consumer-facing business
  • Can be accessed by consumers or provides in-person services to consumers
  • Has at least one employee
  • Must commit to maintaining 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

Businesses applying for a grant and/or 0 % loan opportunity (the loan portion is offered via BDC) through the Boost Your Business Technology - Canada Digital Adoption Program, must meet all of the following eligibility criteria:

  • 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 of annual revenues in one of the previous three tax years

Only an owner or a director (listed in the articles of incorporation) can complete the application form, and the business must meet all eligibility criteria.

Quick facts

  • Announced in Budget 2021, the CDAP is expected to support as many as 160,000 small businesses and help create thousands of jobs, including nearly 30,000 job placements for young Canadians to gain valuable work experience, while helping businesses succeed.
  • Funding under the CDAP consists of $1.4 billion in grants and advisory services to SMEs and up to $2.6 billion in loans from the Business Development Bank of Canada (BDC) to help SMEs cover the cost of implementing digital transformation plans.
    • Grow Your Business Online funding provides micro grants of up to $2,400 and youth e-commerce advisors’ support to help small businesses implement digital storefronts and e-commerce capabilities.
    • Boost Your Business Technology funding provides grants covering 90 per cent of costs up to $15,000 to access advisory services to develop a digital adoption plan, access to zero per cent interest loans from the BDC, as well as opportunities for student placements.
  • SMEs interested in applying for a grant or loan under the CDAP can answer a few quick questions online to help determine the funding that is best suited to meet their needs.
  • Retail e-commerce has rapidly increased during the pandemic. According to Statistics Canada data, year-over-year retail e-commerce increased by more than 110 per cent in May 2020 compared to May 2019.