Important Update: CDAP Is Now Closed
The Canada Digital Adoption Program (CDAP) stopped accepting new applications on February 19, 2024 and is permanently closed. BDC's Data to AI program is the successor, offering expert guidance and preferential-rate financing for AI, automation, and cybersecurity adoption. Visit bdc.ca for details. The comparison below is preserved for historical and educational reference. For current funding options, IRAP remains actively accepting applications.
The Canada Digital Adoption Program (CDAP) and the Industrial Research Assistance Program (IRAP) were two of the most popular funding programs available to Canadian businesses looking to invest in technology and AI. They served very different purposes, funded different activities, and suited different types of businesses.
While CDAP is no longer available, understanding how it compared to IRAP remains valuable context for navigating the Canadian funding landscape. IRAP continues to accept applications, and BDC's Data to AI program now fills the gap CDAP left behind.
Quick Comparison Table
| Criteria | CDAP | IRAP |
|---|---|---|
| Full name | Canada Digital Adoption Program | Industrial Research Assistance Program |
| Authority | ISED | NRC (National Research Council) |
| Max funding | $15,000 grant + $100,000 interest-free loan | Varies; typically $50K–$500K+ |
| Funding type | Grant (non-repayable) + optional loan | Non-repayable contribution (cost-sharing) |
| Best for | Businesses adopting digital tools/AI for the first time | Tech companies doing R&D and innovation |
| Eligibility | 1–499 employees, $500K–$100M revenue, Canadian-owned | SMEs with 500 or fewer employees, incorporated in Canada |
| Timeline | 4–8 weeks for approval; 3–6 months for plan | Ongoing intake; project-based, typically 6–18 months |
| Application | Online portal through ISED | Through an assigned Industrial Technology Advisor (ITA) |
| Repayment | Grant: none. BDC loan: repaid over 5 years (interest-free) | None — it is a non-repayable contribution |
When CDAP Is the Better Fit
CDAP is designed for businesses that are beginning their digital transformation. It is not an R&D program — it funds the plan and the adoption of existing technologies. CDAP is the right choice if:
- •You are a non-tech business starting your digital journey — manufacturing, retail, professional services, agriculture, etc.
- •You are adopting AI or digital tools for the first time — chatbots, CRM, e-commerce, cloud migration, etc.
- •You need a structured digital adoption plan before investing in technology
- •Your business has 1 to 499 employees and revenue between $500K and $100M
When IRAP Is the Better Fit
IRAP is Canada's premier innovation assistance program. It funds research, development, and commercialization of new technology. IRAP is the right choice if:
- •You are a tech-focused company doing R&D — building software products, developing AI models, or creating innovative hardware
- •You already have some AI capability and want to expand into new areas or solve novel technical problems
- •You are developing innovative AI products or services for market
- •You would benefit from advisory support from an Industrial Technology Advisor (ITA) who can guide your technical and business strategy
Can You Apply to Both?
Yes. CDAP and IRAP serve different purposes, and many businesses qualify for both. The key rule is that you cannot use both programs to fund the same expense. Here is how they can work together:
- •Use CDAP to fund your digital adoption plan — the strategic assessment and roadmap for technology adoption
- •Use IRAP to fund the R&D and innovation — the actual development of new AI systems or technology that the plan identifies
For example, a food processing company could use CDAP to develop a digital adoption plan that identifies AI-based quality inspection as a priority. They could then apply to IRAP to fund the development of a custom computer vision system for their production line. The CDAP grant pays for the plan; the IRAP contribution pays for the R&D — no overlap.
What About SR&ED?
There is a third option many businesses overlook: SR&ED (Scientific Research and Experimental Development) tax credits. SR&ED is different from both CDAP and IRAP in several important ways:
- •It is a tax credit, not a grant — you claim it on your corporate tax return after the fiscal year ends
- •It can be stacked with IRAP — you can claim SR&ED on the portions of R&D salary not covered by IRAP funding
- •No application or approval required upfront — you simply do the qualifying work, document it, and file the claim with your tax return
- •Refund rates can be very high: up to 35% federal + provincial credits for CCPCs
For a deeper dive, read our guide to SR&ED for AI projects or visit the SR&ED grant details page.
5 Questions to Decide Which Program Fits
Use this decision framework to quickly identify the best starting point for your business:
| Question | Best Fit |
|---|---|
| Are you adopting AI for the first time? | CDAP |
| Are you building novel AI technology? | IRAP |
| Do you need a structured digital plan? | CDAP |
| Do you need advisory from a tech expert? | IRAP |
| Do you want cash back on R&D salaries? | SR&ED |
Remember: these programs are not mutually exclusive. The ideal strategy for many businesses is to use CDAP for the adoption plan, IRAP for R&D funding, and SR&ED for tax credits on qualifying salaries — maximizing your total support from the Canadian government.
Not sure which grant fits? Our free assessment matches you automatically.
The Qyntral eligibility assessment screens your business against CDAP, IRAP, SR&ED, and three other Canadian funding programs in about 10 minutes. No cost, no obligation — just a clear picture of which programs fit your business and what steps to take next.
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