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Canada Digital Adoption Program
Access Up to a $15,000 Grant in Government Funding and Boost Your Business Technology
Run by the Canadian government, the Canadian Digital Adoption Program is helping businesses grow digitally by offering $4B in funding and access to a digital advisor.
If an applicant submits an application without reviewing the eligibility criteria and is not an owner (for sole proprietors) or director (for corporations) of the business, they will receive an email notification stating that their application does not meet the CDAP eligibility requirements.
Number of full-time equivalent employees exceeds eligibility range
Number of full-time equivalent employees exceeds eligibility range
Businesses must fall within 1 to 499 full-time equivalent (FTE) employees. An FTE is an employee receiving a T4 Statement of Remuneration Paid slip from the applicant and working at least 30 hours per week. Part-time employees are included as fractions of 1 FTE based on their average labor hours compared to typical hours for 1 FTE employee.
To prevent the submission of ineligible applications, immediate eligibility feedback is provided to applicants based on their selections in the application form.
If an applicant chooses an ineligible option, they cannot submit the application. Furthermore, all submitted applications undergo an eligibility check with CRA. If the business's information falls outside the prescribed threshold, the applicant will receive an email stating that their application does not meet CDAP eligibility criteria.
No qualifying income for 1+ of past 3 years.
No qualifying income for 1+ of past 3 years.
Businesses must have annual revenues of at least $500,000 but not exceeding $100,000,000 in one of the previous three tax years from the date of application submission.
To prevent the submission of ineligible applications, immediate eligibility feedback is provided to applicants based on their selections in the application form.
If an applicant chooses an ineligible option, they will be blocked from applying.
Furthermore, all submitted applications undergo an eligibility check with CRA. If the business's information falls outside the prescribed threshold, the applicant will receive an email stating that their application does not meet CDAP eligibility criteria.
The GCKey login is not the same as the CRA login
The GCKey login is not the same as the CRA login
GCKey: Applicants attempting to log in using their Canada Revenue Agency (CRA) Log-in information, formerly known as My GCKey, should note that the GCKey used for CDAP is separate from the CRA Log-in.
Applicants can choose GCKey or utilize the Trusted Sign-in Partner option. Rest assured that no banking information is shared with CDAP or ISED when using the Trusted Sign-in Partner options.For those who do not have a GCKey yet, creating one is simple and immediate.
Applicants are not utilizing their personal banking login for automated ID verification.
Applicants are not utilizing their personal banking login for automated ID verification.
Incorrect Banking Information: Some applicants use their business banking details instead of their personal banking information for the automated ID validation system. Please note that business accounts are ineligible for the automated ID verification process.
Note: Before entering the verification system, applicants are presented with an instructional page stressing the importance of using their personal banking login.
Applicants are waiting unusually long for the non-automated ID verification option
Applicants are waiting unusually long for the non-automated ID verification option
Applicant Tip: To accelerate your application process, select the automated ID validation option "Verify your identity online" through Verify.me.
Opting for the non-automated ID validation option "Request verification with a CDAP officer" can take up to 10 business days to arrange a video call for manual ID verification.
If the automated solution is not viable, follow these instructions for the non-automated option:"Once we receive your request, you will be contacted to schedule a video call for manual ID verification. Our availability is Monday to Friday, 8:30 a.m. to 4:30 p.m. EST. Please provide your preferred meeting time(s), business number, company legal name, and postal code in the textbox below."
The Business Number does not match the business's legal name
The Business Number does not match the business's legal name
Spelling Issue: Clients may misspell their legal business name as stated on their CRA Notice of Assessment (NOA). For instance, they may omit the period at the end of "Inc." or write out "incorporated" instead of using "Inc."
The applicant does not qualify for the BDC Fast Track option
The applicant does not qualify for the BDC Fast Track option
Incorrect Document Upload: Applicants must submit a copy of their Digital Adoption Plan, created through an eligible provincial or territorial program. Uploading the results of a Digital Needs Assessment (CDA) or any unrelated document instead of the recognized Digital Adoption Plan from an approved program will disqualify applicants from the Fast Track process.
CDAP accepts Digital Adoption Plans not older than 1 year from the following programs:
Programme Audit Industrie 4.0 (in French only)
Digital Boost 2.0
Atlantic Canada Opportunities Agency: Digital Acceleration Pilot
BDC Advisory Services
After approval, what are the next steps for the applicant?
After approval, what are the next steps for the applicant?
Frequently, approved applicants ask about the next steps or where to find the grant agreement for signature.
To proceed, the applicant should log back into the CDAP system and access the landing page. There, they will find the option to accept the grant agreement and provide their banking details.
Next, the applicant can type in their name and check the appropriate checkbox, indicating that they have read and accepted the agreement's terms. Afterward, they can select the "I accept this agreement" button. Note that the button becomes activated only after checking the checkbox.
Frequently asked Questions
We have compiled a list of questions commonly asked by small business owners regarding the Canada Digital Adoption Program (CDAP) and the Business Development Bank of Canada (BDC) loan.
What is the expected time to complete the CDAP application process?
The CDAP application process is very quick. The application will require personal and business verification with the CRA, and the approval will come right away with an acceptance into the program or denial stating a reason.
What is the typical timeframe required to complete the BDC loan application process?
BDC loan application will take 2 weeks, starting from the time of submission, assuming that all the necessary documents are submitted on time and do not cause delays.
Can businesses in any industry apply for the CDAP program and BDC loan or are there restrictions?
Yes, any business can apply for the CDAP program and by extension the BDC loan under that program. The criteria is it must be a Canadian for-profit corporation that meets the minimum revenue requirements ($500,000) and be up to date on its tax filing.
Can I submit for the CDAP program separately for my multiple businesses if each has its unique business number?
Indeed, you can apply for the Canada Digital Adoption Program (CDAP) for each business separately if they have different business numbers; each entity can be approved for the CDAP program and BDC loan individually.
What does the Business Development Bank of Canada (BDC) loan entail? How does it relate to Canada Digital Adoption Program (CDAP)?
The BDC loan provides financial assistance to small and medium-sized enterprises (SMEs) in Canada to implement digital technologies into their business operations. This loan plays a vital role in the CDAP initiative, which supports SMEs in adopting digital solutions and expanding their competitive edge.
What are the eligibility requirements for the BDC loan, and how much can businesses request?
To qualify for the program, businesses must have met a minimum threshold of $500,000 in annual sales at least once in the last three years. BDC will also look at the last year-end financial statement to determine the maximum eligible amount. SMEs can apply for a 0% interest loan with BDC through a unique link provided by ISED once the DAP has been approved. The amount that businesses can request depends on their annual gross revenues, with loans ranging from $25,000 to $50,000 for businesses with $500,000 to $5 million in annual revenues and loans ranging from $25,000 to $100,000 for businesses with revenues of $5 million or more.
What can the BDC loan be used for
The loan can finance a wide range of digital transformation projects, including investments in e-commerce platforms, website development, customer relationship management (CRM) systems, cybersecurity measures, and more. You can use the loan to pay for software, services, employees, and even monthly subscriptions. The main point is that it must be a technology product or service mentioned in the digital adoption plan.
Will the BDC audit what the loan was used for by the SME?
Yes, the use of the loan will be audited by ISED to ensure the funds have been allocated to expenses mentioned in the digital adoption plan.
What documents do businesses need to have on hand when applying for the BDC loan?
Businesses should have their financial statements, credit score, and shareholder verifications (for all shareholders above 25% shares within the company) on hand when applying.
What are the repayment terms for the BDC loan?
The loan offers a 12-month grace period from approval with the BDC, followed by five years of loan repayment with 0% interest. It's worth noting that the loan is not a grant or a subsidy but must be repaid.
What is the timeframe for SMEs to apply for the BDC loan after completing and submitting their digital adoption plan?
The SME has a 6-month window to apply for the BDC loan from the time the invitation is sent. After that period, the invitation will be closed, and if the SME wishes to apply they must send a special request to ISED to be able to apply for the loan.
Is it possible for a business owner with approval for the CDAP program for multiple businesses to submit for several BDC loans?
Absolutely! Each business can apply independently through the same procedure, with the possibility of being eligible for interest-free loans of up to $100,000.
Are there any penalties for early paying off the BDC loan?
No, there are no penalties for repaying the BDC loan before the due date; it's unnecessary as the loan is interest-free..
Can the BDC loan be used to pay off existing debt or must it be used for specific digital investments?
The BDC loan is exclusively designated for financing investments in digital technology and associated costs, like software and hardware expenses, website development, and staff training in digital skills. The loan cannot be used to pay off current debt or cover general business expenditures or inventory purchases.
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