CDAP Grant: Canada Digital Adoption Program
The Canada Digital Adoption Program (CDAP) was a federal initiative that helped Canadian SMBs adopt digital technologies through the Boost Your Business Technology stream. The program provided up to $15,000 in grant funding for a digital adoption plan, plus a 0% interest BDC loan of up to $100,000 for implementation. CDAP stopped accepting new applications on February 19, 2024.
CDAP Is No Longer Accepting Applications
The CDAP Boost Your Business Technology stream stopped accepting new applications on February 19, 2024. BDC's Data to AI program is the successor, offering expert guidance and preferential-rate financing for AI, automation, and cybersecurity adoption.
What Replaced CDAP: BDC Data to AI
Following the closure of CDAP, the Business Development Bank of Canada (BDC) launched the Data to AI program as the primary pathway for Canadian businesses seeking digital transformation support. The program combines expert advisory services with preferential-rate BDC financing to help businesses adopt AI, automation, and cybersecurity solutions.
While CDAP offered a non-repayable grant for planning, BDC Data to AI focuses on a different model: hands-on advisory guidance paired with financing for implementation. This means businesses can move directly from strategy to execution with a single program.
Expert AI guidance
Work with BDC advisors to develop an AI adoption strategy tailored to your business needs and industry.
Preferential-rate financing
Access BDC loans at competitive rates to fund AI software, automation tools, and implementation services.
Cybersecurity support
Build robust cybersecurity infrastructure alongside your AI adoption to protect business data and systems.
Automation implementation
Fund the implementation of workflow automation, intelligent process optimization, and data analytics tools.
Not sure which program is right for you?
Our free 10-minute assessment evaluates your business profile against all active Canadian funding programs, including BDC Data to AI, IRAP, SR&ED, OIDMTC, and provincial programs.
Active Programs to Explore Instead
While CDAP is no longer available, several other Canadian programs actively support AI adoption and digital transformation. Each serves a different stage of the technology journey.
BDC Data to AI
Financing availableBest For
AI adoption, automation, cybersecurity implementation
Funding Type
Advisory + preferential-rate financing
NRC IRAP
Up to $100,000+Best For
R&D projects, novel technology development, AI research
Funding Type
Non-repayable contribution
SR&ED
35-43% tax creditBest For
Experimental development, systematic investigation, AI model training
Funding Type
Refundable tax credit
For a full overview of all available programs, visit our Canadian grants hub.
What Was CDAP?
The Canada Digital Adoption Program (CDAP) was a federal government initiative launched by Innovation, Science and Economic Development Canada (ISED) to help Canadian businesses modernize and remain competitive in the digital economy. The program was designed in response to the finding that many Canadian SMBs lagged behind international competitors in technology adoption, particularly in areas like e-commerce, cloud computing, cybersecurity, and artificial intelligence.
CDAP operated primarily through the Boost Your Business Technology stream, which provided eligible businesses with a micro-grant of up to $15,000 to work with a CDAP-authorized digital advisor. The advisor helped develop a customized digital adoption plan tailored to the business's specific needs, challenges, and goals.
Beyond the grant itself, CDAP connected approved businesses with a BDC 0% interest loan of up to $100,000 to implement the technologies recommended in the adoption plan. The program also included a wage subsidy component that helped businesses hire young Canadians to support their digital transformation efforts.
During its active period, CDAP helped thousands of Canadian businesses develop comprehensive digital strategies. The program was part of the federal government's broader commitment to investing in SMB competitiveness, with a total allocation of $4 billion in the 2021 federal budget for digital adoption initiatives. The Boost Your Business Technology stream closed to new applications on February 19, 2024. For the latest program information, visit the official ISED CDAP page.
CDAP Eligibility Requirements (Historical)
The following eligibility criteria applied when CDAP was accepting applications. These are provided for reference only, as the program is no longer accepting new applicants.
Canadian-owned and operated
The business had to be majority-owned by Canadian citizens or permanent residents and operate primarily within Canada.
1-499 full-time equivalent employees
Businesses needed between 1 and 499 FTEs. Part-time employees were counted proportionally toward the FTE total.
Minimum $500,000 in annual revenue (one of past 3 years)
At least one of the last three completed fiscal years had to show minimum annual revenue of $500,000 in gross revenue.
Federally or provincially incorporated, or registered as a partnership
The business had to be a registered corporation (federal or provincial) or a Canadian resident partnership. Sole proprietorships were not eligible.
Not a non-profit, charity, or public sector entity
Non-profit organizations, registered charities, public institutions, and government entities were excluded from the Boost Your Business Technology stream.
Ready to explore active Canadian funding programs for your business?
Take our free 10-minute AI readiness assessment to understand where you stand, then book a discovery call to discuss how we can help.
FAQ
Frequently Asked Questions About CDAP
Is CDAP still accepting applications?
No. The CDAP Boost Your Business Technology stream stopped accepting new applications on February 19, 2024. ISED has not announced plans to reopen the program. Businesses already approved before the closure may still be completing their plans and claiming grants, but no new applications are being accepted.
What replaced CDAP?
BDC's Data to AI program is the primary successor. It offers expert guidance and preferential-rate financing to help Canadian businesses adopt AI, automation, and cybersecurity solutions. Unlike CDAP's grant-plus-loan model, Data to AI focuses on advisory services paired with BDC financing. Other active programs include NRC IRAP for R&D projects and SR&ED tax credits for qualifying R&D expenditures.
What was the CDAP grant?
The Canada Digital Adoption Program (CDAP) was a federal initiative administered by Innovation, Science and Economic Development Canada (ISED). Through the Boost Your Business Technology stream, eligible businesses could receive a micro-grant of up to $15,000 to develop a digital adoption plan, plus access to a 0% interest BDC loan of up to $100,000 to implement the plan's recommendations. The program closed to new applicants in February 2024.
Who was eligible for CDAP funding?
To be eligible, a business needed to be Canadian-owned and operated, have between 1 and 499 full-time equivalent employees, report at least $500,000 in annual revenue in one of the past three fiscal years, and be federally or provincially incorporated or registered as a partnership. Non-profits, charities, and public-sector entities were not eligible.
Can I still get a BDC loan for digital transformation?
Yes. While the CDAP-specific 0% interest BDC loan is no longer available to new applicants, BDC continues to offer technology-focused financing through its Data to AI program and other lending products. BDC loans can fund AI software, automation tools, cybersecurity infrastructure, cloud services, and implementation services.
What other Canadian grants are available for AI and digital transformation?
Active programs include NRC IRAP (non-repayable contributions for R&D projects), SR&ED tax credits (35% federal ITC for qualifying R&D), OIDMTC (40% Ontario labour credit for interactive digital media), BDC Data to AI financing, and various provincial programs. Our free assessment evaluates your business against all active programs.
I was approved for CDAP before it closed. Can I still claim my grant?
If you were approved before the February 2024 closure, you should be able to complete the program as planned. Contact ISED directly or check the official CDAP page for the latest guidance on completing your digital adoption plan and claiming the grant.
Does Qyntral help with finding alternative funding?
Yes. Our free AI readiness assessment evaluates your business across multiple dimensions and identifies alignment with all active Canadian funding programs, including IRAP, SR&ED, OIDMTC, BDC financing, and provincial programs. The assessment takes about 10 minutes and provides a comprehensive report with funding recommendations.
Disclaimer: This page is provided for informational purposes only and does not constitute professional advice. The CDAP Boost Your Business Technology stream is no longer accepting new applications as of February 19, 2024. Information about CDAP on this page is historical and may not reflect the current state of the program for applicants already in progress. BDC Data to AI program details are subject to change. Qyntral is not affiliated with, endorsed by, or an authorized representative of ISED, BDC, or any government program. Always verify details directly with the relevant program authority before making business decisions.