What Is Canada Digital Adoption Program (CDAP) And How Can It Transform Your Business?

Running a small business isn’t easy: between managing customers and operations, there’s often little time to think about digital transformation. That’s where the Canadian Digital Adoption Program (CDAP) comes in.

This $4 billion investment by the Government of Canada is designed to help SMEs get online and use technology to build their businesses. By reading on, you will discover how CDAP can transform your business with grants, expertise, and other resources – so let’s start exploring!

Key Takeaways

  • The Canadian Digital Adoption Program (CDAP) is a $4 billion federal program to help SMEs integrate emerging technologies into operations.
  • CDAP provides up to 90% grants for digital advisory services plus 0% interest BDC loans on eligible technology purchases.
  • Through CDAP, small businesses have access to advisors and resources that can help them create an effective digital plan tailored to their needs.
  • Benefits of CDAP include increased efficiency & productivity, cost savings via automated processes and data-driven decision-making tools.

What is CDAP?

CDAP stands for the Canada Digital Adoption Program, a federal government initiative to help small and medium-sized businesses successfully integrate emerging technologies into their operations.

CDAP has two streams: Grow Your Business Online and Boost Your Business Technology

Grow Your Business Online

A screenshot from ISED website explaining what people can get from the Grow Your Business Online CDAP stream.

This stream is for businesses who wish to establish their own e-commerce website. The Grow Your Business Online provides:

  • up to $2,400 of government grant to establish an e-commerce website
  • access to e-commerce advisors

Boost Your Business Technology

A screenshot from ISED website explaining what people can get from the Boost Your Business Technology CDAP stream.

On the other hand, the Boost Your Business Technology grant provides SMEs support to adopt new technology. 

This stream gives:

  • up to $15,000 of government grant to develop a Digital Adoption Plan
  • up to $100,000 in 0% interest loan from the Business Development Bank of Canada (BDC) to implement your plan
  • up to $7,300 to hire a skilled youth to implement the technologies.

It is important to note that in February 2024, CDAP will no longer accept grant applications for the Boost Your Business Technology stream as it has already been fully subscribed. However, those who were able to sign the grant agreement can still submit their digital adoption plan, claim their grant, and apply for a BDC loan.

Goals of CDAP

  • To support small and medium-sized businesses in meeting the challenges of the digital age.
  • To accelerate the digital transformation of SMEs.
  • To provide access to grants, expertise and 0% interest loans.
  • To ensure Canadian SMEs remain competitive in the digital economy.

How Can CDAP Transform Your Business?   

Through CDAP, entrepreneurs can access reliable grants and industry professionals with the necessary skills and experience to help facilitate digital transformation in their organization, thus improving its competitiveness.

  1. Access to grants and expertise

CDAP offers grants for up to 90% of the cost of digital advisory services, zero-interest loans, and funding to help businesses cover their digital costs. It means that small business owners in Canada have access to resources, expertise and guidance from experienced digital advisors at no or low cost.

Businesses can save money and improve efficiency by accessing this assistance. They can also gain insight into strategic technology use, compete better online, identify operational gaps, and pursue growth opportunities.

  1. Opportunities for digital transformation

CDAP provides access to digital advisors who can help business owners to increase competitiveness by implementing digital strategies and adopting digital solutions tailored to address the business’s unique needs as well as fill in digital gaps in the operations.

The program also enables SMEs to create job opportunities for youth by optimizing core operations with new technology solutions – fostering economic growth and rebuilding a more robust workforce.

  1. Improved competitiveness

SMEs can leverage expert advice from dedicated advisors to identify growth and digital transformation opportunities through the CDAP grant. These advisors can provide precise guidance on cutting-edge technologies such as cloud computing, AI, big data analytics and other digital tools to boost various areas of their business.

How Can CDAP Transform Your Accounting Firm?

Contrary to popular belief, CDAP isn’t just for small retail businesses. It’s also open to customer-serving businesses like contractors and home maintenance services. Even accounting firms, especially ones handling personal taxes, can use the program.

  1. Opportunities for remote work capability

Digital tools and cloud-based systems enable accountants to work from anywhere, fostering a remote work culture. This allows firms to hire talent regardless of geographical boundaries and offers employees the flexibility to balance their work and personal life.

  1. Cost savings

Traditional accounting involves a lot of paperwork and physical storage. With digital transformation, data is stored electronically, eliminating the need for physical storage space and reducing printing costs. Furthermore, automated processes can reduce labor costs by accomplishing tasks more quickly and accurately.

  1. Improved efficiency

By using digital tools to automate tasks like data entry and reconciliation, accountants can save time and focus on higher-value tasks. This can include strategic planning, data analysis, and advising clients. This shift can boost productivity and increase the overall efficiency of an accounting firm.

How to Apply for CDAP

Small and medium-sized businesses can access the CDAP program by applying through a process that requires specific eligibility criteria and documentation.

Grow Your Business Online Grant


To qualify for this grant, the SME must:

  • be for-profit business (including for-profit social enterprises and co-operatives)
  • be registered or incorporated
  • be consumer-facing
  • have at least one employee (other than the owner) OR had at least $30,000 in annual revenue in the most recent tax year 
  • be committed to maintaining a digital adoption strategy for six months
  • agree to participate in follow-up surveys, share data about the experience, and have its name published as a grant recipient

How to Apply

  • Work with an eligible e-commerce advisor to develop a deployment plan.
  • Apply for the micro-grant of up to $2,400

What are the eligible costs?

The grant covers the following costs related to developing a new e-commerce website: subscription fees and digital marketing consultant fees for carrying out services like website search optimization and social media advertising.

Boost Your Business Technology Grant


To qualify for the grant, the SME must:

  • be Canadian-owned
  • be a sole proprietor or a business incorporated under the laws of Canada or a province or territory
  • be for-profit
  • have 1 to 499 employees
  • have had at least $500,000 in annual revenue (but no more than $100M in 1 of the previous 3 tax years)

How to Apply

  • Create a My Canada Business Account
  • Confirm eligibility
  • Work with an approved digital advisor to develop a Digital Adoption Plan. You can find one from the Digital Advisor Marketplace. 
  • Submit your Digital Adoption Plan along with the claim for payment to CDAP.
This is two tables that lay out the eligibility criteria for the CDAP Grow Your Business Online grant and Boost Your Business Technology grant.

What are the eligible costs?

The grant covers Digital Advisory services or any expenses directly related to developing the Digital Adoption Plan. The grant does not cover the implementation, including purchasing hardware and software, nor the services or assistance of Digital Advisors during the application process.

5 Benefits of CDAP for Small and Medium-sized Businesses

CDAP provides many advantages for Canadian small to medium businesses, from improved efficiency and productivity to uncovering digital gaps. Learn more about what this program can do for your business!

These are the 5 benefits of CDAP for small and medium-sized businesses: increased efficiency and productivity, identification of digital opportunities, cost savings, access to advisory expertise, and data-driven decision making.
  1. Increased efficiency and productivity

CDAP can help small businesses in Canada increase efficiency and productivity by providing access to grants that can be used to create a Digital Adoption Plan, which involves leveraging digital tools and automated processes.

This plan includes implementation of advanced technologies such as cloud platforms, AI-based applications, customer relationship management systems (CRM), financial tracking software, and big data analysis tools. These technologies provide companies with better operational visibility and streamlined processes.

  1. Cost savings

Through the implementation of digital technologies, automating manual processes, for instance, can help set up systems that will cut labour costs while increasing productivity. Additionally, with access to up to $100,000 in interest-free loans from BDC as part of the program, smaller businesses could upgrade their technology without breaking the bank.

  1. Identification of digital opportunities

Gaining insights into a business’s digital gaps can help SMEs prepare for the future of their industry and remain competitive. Through CDAP funding and digital needs assessments, small businesses in Canada can get targeted advice on how they might better apply digital technologies based on their particular circumstances.

Digital advisors can provide valuable insight when researching or mapping solutions to current problems, identifying technical areas for improvement in core processes, or determining which technology tools need updating. Conducting such research can uncover information that may not be apparent without the help of experts in the field.

The identification of these potential areas of improvement will assist small and medium-sized businesses (SMEs) with leveraging up-to-date technologies that align with their specific operations, increasing efficiency through optimized workflow processes and data-driven decision making.

READ MORE: Useful Resources and Tools

  1. Data-driven decision making

Small business owners in Canada can benefit from becoming data-driven. Data-driven decision-making allows businesses to gain insights into customer behaviour and trends, enabling them to make more informed decisions and drive growth.

CDAP grants and support provided by the Digital Adopters Program (DAP) provide opportunities for small businesses to embrace digital technologies. Through access to grants, expertise, resources, personalized advice and training programs offered under the DAP, small firms can become data-driven and improve their competitiveness.

With the help of these tools and services offered through the CDAP program, businesses are enabled with innovative technologies like analytics tools, which provide invaluable insights based on data analysis, helping them identify digital gaps within their organization or products that require attention or improvements.

  1. Access to advisory expertise

CDAP provides unparalleled collaboration opportunities for Canadian small businesses by giving them opportunity to work with expert digital advisors. Through the program, eligible SMEs may access the Digital Advisors Marketplace. Commonly, besides developing the Digital Adoption Plan, some advisors may also provide webinars or expert consultations that will assist business owners in formulating effective Digital Adoption Plans (DAPs).

These plans allow SMEs to gain insights into their current levels of digital maturity and provide guidance on digitally transforming their business. CDAP also facilitates networking with experienced technology advisors who can share helpful advice on the various steps needed for successful digital transformation.

Furthermore, companies connected with CDAP can take advantage of special grants available only through this platform, which support them in making informed decisions around technology adoption.


The Canada Digital Adoption Program (CDAP) supports small and medium-sized businesses (SMEs) in their digital transformation efforts. CDAP provides SMEs access to grants, loans from the Business Development Bank of Canada (BDC), and expert advice to help them get online, upgrade their technology, identify digital gaps, become data-driven, and utilize technology more effectively.

By taking advantage of these programs and services, SMEs can drive growth while improving efficiency and productivity – two key ingredients for long-term competitiveness.


What is CDAP?

CDAP stands for Canada Digital Adoption Program, federal government initiative to help small and medium-sized businesses successfully integrate emerging technologies into their operations.

How can CDAP transform my business?

With the help of a certified CDAP advisor, you can maximize your investment in digital marketing by understanding where best to allocate resources and how best to use current technologies like Artificial Intelligence and data analytics tools. Furthermore, effective advertising strategies can be deployed more efficiently with up-to-date insight into consumer behaviour.

If you want to learn more about other fantastic opportunities for small business owners in Canada, check out our other blog posts here at CPA Guide