BDC — Canada Digital Adoption Program (CDAP)
Highlights
The Canada Digital Adoption Program (CDAP) is designed to help your business thrive in the digital age. By participating, you can receive a grant of up to $15,000 to create a digital adoption plan with the help of approved advisors. Once your plan is approved, you can apply for a 0% interest loan of up to $100,000 to implement the plan. This loan can be used for acquiring IT equipment, installing new technologies, updating existing systems, and training your staff.
Why should you apply?
- 0% interest loan: This is a rare opportunity to access financing without the burden of interest, making it more affordable than traditional loans.
- Comprehensive support: The program covers up to 90% of advisory fees, ensuring you get expert guidance without significant upfront costs.
- Flexible use of funds: The loan can be used for various digital transformation needs, from equipment purchases to staff training.
What's in it for you?
- Enhanced efficiency: Implementing new technologies can streamline your operations and improve productivity.
- Competitive edge: Staying ahead in the digital landscape can help you attract more customers and increase sales.
- Long-term growth: Investing in digital tools now can set your business up for sustained success in the future.
Qualifying for this program is straightforward if you meet the criteria, making it an accessible and valuable opportunity for your business.
Financing Details
Type of Financing:
Loan
Interest Rate and Repayment Terms:
- 0% interest rate
- Loan amount up to $100,000
- 5-year term with an additional 12 months of capital postponement (total of 6 years)
Eligible Expenses:
- Acquiring IT equipment
- Installation of new technologies
- Updating and/or expanding IT equipment
- Training staff on onboarded technologies
- Materials and support services directly related to onboarding the technology
- Further advisory services on particular aspects of the digital adoption plan
Ineligible Expenses:
- The funds cannot be used for any expenses not directly related to the digital adoption plan.
Fees:
- No fees associated with the loan
Qualifications
- Must have a valid, signed grant agreement before February 19, 2024.
- Must have completed a digital adoption plan and be ready to submit the grant claim.
- Must have an approved grant claim to apply for the BDC 0% interest loan and/or a wage subsidy to hire an employee.
- Business must have at least $500,000 of annual income as of the closing date of the last fiscal year-end.
- For businesses with revenues between $500,000 and less than $5 million, can request a loan between $25,000 and $50,000.
- For businesses with revenues $5 million and more, can request a loan between $25,000 and $100,000.
Must use the loan to implement recommendations from the digital adoption plan recognized by the CDAP Boost Your Business Technology stream.
Disqualifications:
- New applicants.
- Applicants who started an application but did not reach the point of signing a grant agreement.
- Applicants with expired grant agreements.
- Businesses that do not meet BDC’s creditworthiness criteria.
Description
This program offers your business a fantastic opportunity to adopt digital technologies. You can receive a grant of up to $15,000 to develop a digital adoption plan. This grant covers up to 90% of the advisory service costs.
Once your plan is approved, you can apply for a 0% interest loan of up to $100,000. This loan can be used to implement your digital plan. This includes buying IT equipment, installing new technologies, updating existing systems, and training your staff. The loan is interest-free, giving you a cost-effective way to modernize your business.
The loan has a 5-year term with an additional 12 months of capital postponement, making it easier to manage your cash flow. This means you have a total of 6 years to repay the loan. This program is an excellent way to enhance your business's digital capabilities without financial strain.
Program Steps
Build Your Digital Adoption Plan: Collaborate with an ISED-approved partner to create a comprehensive digital adoption plan. BDC’s Advisory Services team is one of the approved partners and can assist you in digitizing your business.
Prepare Required Documentation: Gather and prepare the necessary documents for your application. These include:
- Your completed digital adoption plan
- Invoices for advisory services
- Financial statements
- Business registration documents
- Any other documentation specified by ISED
Submit Your Digital Adoption Plan: Submit your digital adoption plan and invoices to ISED for approval. They will review your submission and disburse a grant of up to $15,000 to cover your advisory fees.
Apply for the BDC 0% Interest Loan: Once your plan is approved, log in to the CDAP portal on ISED’s site to access the link for the BDC loan application. You can apply for a loan of up to $100,000 to implement your digital adoption plan.
Implement Your Digital Plan: Use the loan funds to cover costs directly related to your digital plan. This can include acquiring IT equipment, installing new technologies, updating existing IT infrastructure, training staff, and obtaining further advisory services.
Monitor and Report Progress: Keep track of your progress and ensure you meet all program deadlines. Submit any required reports or updates to ISED as specified in your grant agreement.
Complete the Loan Application: Ensure you complete the loan application within 6 months of your digital adoption plan approval. Failure to do so will result in ineligibility for the loan.