Canadian Digital Adoption Plan (CDAP)

Your business must:

1. be Canadian-owned,
2. be for-profit,
3. have 1 to 499 full-time employees,
4. and have had at least $500,000 in annual revenue in 1 of the last 3 years

The short answer: free money to digitize your business and drive growth.

The long(er) answer: CDAP provides funding opportunities to support businesses in adopting digital technologies and transforming their operations to remain competitive in the ever-evolving business landscape. This funding covers up to 90% of the costs of digital advisory services – that’s us! – used to develop and implement your plan.

CDAP funding can help businesses save costs in the long term by improving their operations and increasing efficiency. By embracing new technologies, businesses can streamline their processes, reduce waste, and increase productivity, all of which can help increase profitability and drive growth.

All eligible costs must be directly tied to the sale of goods and services online (i.e., online reservations/ordering or chatbot function on website), and you will need to clearly outline this in your application.

Some eligible costs include:

• Costs related to the implementation or improvement of a digital e-commerce plan (i.e., online reservation/booking tools, online ordering systems, electronic payments)
• Costs related to website search optimization
  • Note: plan cannot be used solely for SEO, it needs to be tied to the overall e-commerce implementation plan, and not a standalone item.
• Costs related to the installation of an e-commerce platform (including subscription fees/costs)
• Costs of back-office solutions to support an e-commerce strategy (i.e., an e-commerce solution that allows for full integration between the storefront and back-office processes, like inventory management, order fulfillment and distribution)
• Costs of social media, advertising & marketing
  • Note: plan cannot be used solely for marketing purposes, it needs to be tied to the overall e-commerce implementation plan, and not a standalone item.
• Costs related to the creation of customer databases
• Hiring a consultant/agency to execute Digital Marketing initiatives related to your e-commerce store
• Development of a new e-commerce website
• Upgrading existing e-commerce site for added functionality (i.e., new plugins, or features)
  • Note: redesign of an existing website is not eligible
• E-commerce software including:
  • Software to track and manage product inventory, as well as fulfill and ship orders,
  • Software for product databases
  • Software to track sales, market to customers, offer discounts, maintain a loyalty program
  • Software to simplify marketing
  • Cyber Security software or certifications
  • Note: all software must be directly tied to the selling of goods and services online, and you will need to clearly outline this in your submitted plan.
• Hardware and accompanying software up to 20% of total grant amount
  • Note: All hardware and software must be directly tied to the selling of goods and services online, and you will need to clearly outline this in your submitted plan. (As for examples of limited coverage for software, it would be any software that is bought with the equipment that is required to support an e-commerce strategy. For instance, if a small business buys a new e-commerce integrated point of sale (POS) system that costs $1,300 (including software), CDAP will cover 20% or $260.)

Envol’s support extends beyond the CDAP application – we’re your full digital partner.

From working with you to find the right digital solutions for your unique needs, to developing a comprehensive digital adoption plan that will secure you the funding, to providing ongoing support throughout implementation process – we do the legwork for you.

The best part? We help you access ALL the money… not just CDAP. Interested in learning more about the untapped world of grant funding? Get in touch with our team today.

Stream 1: Grow Your Business Online

Envol is not involved in this stream.

Empowering small consumer-facing businesses, Grow Your Business Online unlocks the potential of e-commerce by offering a micro-grant of up to $2,400. Open to businesses with annual revenues under $500k, this program supports the adoption of digital technologies by covering associated costs.

Stream 2: Boost Your Business Technology

Envol is involved in this stream.

Boost Your Business Technology is a program designed to support small and medium-sized businesses in their digital transformation journey. The program offers a grant from Innovation, Science and Economic Development Canada (ISED) that covers up to 90% of the cost of advisory services for developing a digital adoption plan, with a maximum grant value of $15,000. After receiving the grant, businesses can apply for an interest-free loan of up to $100,000 from BDC to implement the technology. This stream is ideal for businesses looking to adopt more advanced technology to stay competitive in today's digital landscape.

For more information, we encourage you to visit ISED's website.

Interest-free loans between $25,000 and $50,000 if your company generates $500,000 to $5 million in annual revenue OR $50,000 to $100,000 if your annual revenue is over $5 million.

Yes, you can apply to both grants as long as you meet the eligibility criteria for each.

Yes! You may receive up to 90% of eligible project costs up to a maximum of $15,000, which can cover multiple projects.

The first step before applying for the loan is to have a digital adoption plan that is recognized by the CDAP Boost Your Business Technology stream.

If you have already completed an approved digital adoption plan through another federal program, you may be eligible to 'fast track' your application for the BDC interest-free loan and youth wage subsidy.

Once your digital adoption plan has been reviewed by CDAP and if you are interested in applying for a loan, ISED will send you an email with a personalized link.

Nope! The $4 billion in grant funding is available on a first-come, first-serve basis. The good news is that the CDAP program was approved for 5 years in 2021 and they are nowhere near their funding target yet.

Yes. Generally speaking, grants are considered revenue, or income. Depending on your use case, how you report these funds on your Corporate T2 Return will vary. Always consult your accountant to ensure you remain compliant.

The $15K grant must be used with only one approved Digital Advisor. You are unable to split this grant funding between multiple Digital Advisors.

You’ll need to submit your digital adoption plan and invoices to the federal government for reimbursement within nine (9) months of being approved for funding; although it usually takes us up to 2 weeks to help you develop your plan.

If you’re eligible for CDAP, it’s an indicator that your business is in a ‘sweet spot’ for grants. This means there’s likely more money out there for you! Interested in learning more about the free money that’s just waiting to be tapped into? Envol’s team of specialists can help! Get in touch today.