The Government of Canada has setup the Canada Digital Adoption Program (CDAP) which is providing $4 billion in funding to help small to medium-sized businesses become more digitally evolved. With this program they are offering grants to small business that can be used to boost the businesses technology with up to $15,000 in funding.
Two different grants are available which Canadian businesses can apply for:
Grow Your Business Online Grant
This micro-grant allows small businesses to receive up to $2,400 to help implement e-commerce capabilities on an existing website or with a new website. Some of the grant money can be designated for marketing but most of it must be used for setting up and/or updating your online store.
Is My Business Eligible?
Your business is eligible for funding from the Grow Your Business Online grant if it meets the following conditions:
- A for-profit business.
- Sells goods or services directly to end consumers.
- Has at least 1 employee or earned at least $30,000 in annual revenue during the last tax year.
- Commits to the online store strategy for 6 months.
- Participates in follow-up surveys (from Innovation, Science and Economic Development Canada (ISED) and Statistics Canada) and agrees have the name of the business published as a recipient of the funding.
What does this Grant Funding Cover?
The Grow Your Business Online grant covers:
- A new e-commerce website or adding related functionality to an existing site.
- This can include online reservation/booking functionality, ordering systems, digital payments, inventory management, sales tracking, digital marketing, discounts, loyalty programs, increased security, and SEO.
- Partially cover hiring a consultant to help with digital marketing tied to the overall e-commerce implementation plan.
- To pay up to 20% of the total cost of hardware and software including software subscription and licensing fees related to the website.
How it Works
Confirm your eligibility with the CDAP grant assessment tool and then connect with a local service provider (e-Commerce Advisor). The provider will then help you to apply for the grant.
You can also apply online by visiting the Grant Funding page. Click on the appropriate “Apply Now” button found under the Grow Your Business Online grant section, and it will open a new page which then allows you to select what part of Canada you are from. From here you then select your local or regional service provider to start your application now (for example the Ontario Chamber of Commerce).
Potential Problems
Not Nearly Enough Funding
This is a micro-grant so even receiving the full funding of $2,400 will only cover a small portion of the cost to implement an e-commerce solution. A small custom WordPress e-commerce website with only a few products or service from a professional designer and developer costs between $5,000 and $10,000. If you have a lot of products, this cost can easily double.
Still, this is money you didn’t have before and is enough to warrant requesting the grant if you meet the requirements.
Inexperienced E-Commerce Advisors
The e-commerce advisors must register and be part of the Canada Digital Adoption Program. They will receive training to understand how the grant works and to learn the capabilities of different solutions and the basics of cyber security.
Advisors are young and inexperienced. As per the CDAP requirements they are either about to or are pursuing post-secondary education or are a recent graduate. It is unclear if these advisors need to be paid by you through funds from the grant or if they are paid separately by the government. It’s also unclear if their role is purely to advise or if they can help implement the solutions they come up with as well.
Either way, they are inexperienced. Implementing an online store requires developing marketing strategies for attracting traffic to the website and also converting visitors into customers once on the website. The person needs to understanding your industry and target audiences.
There is also a lot of back-end technology that the designer and developer need to understand. This includes things like:
- Performance
- Security
- Payment Gateways
- Shipping
- Inventory management
This is not a job that you want to give to someone new to the industry. This website is supposed to be your best sales tool and the keystone to making your business grow.
Boost Your Business Technology Grant
Receive up to $15,000 to develop a Digital Adoption Plan and up to $100,000 in 0% interest loan from the Business Development Bank of Canada (BDC) to implement your plan.
Loan amounts depends on business revenue. The minimum loan amount is $25,000 and goes up to $50,000 for businesses with revenue up to $5 million. Those with over this revenue amount could get loans up to $100,000.
The loan has a 5-year term with 12-month capital postponement (total of 6 years). There are no fees.
You can also receive a further $7,300 to hire a skilled youth to implement the technologies within your plan.
Is My Business Eligible?
Your business is eligible for funding from the Boost Your Business Technology grant if it meets the following conditions:
- Canadian Owned and a for-profit business.
- Has 1 to 499 employees
- Has had at least $500,000 in annual revenue (max $10 million) in 1 of the 3 previous tax years)
- Must meet BDC credit worthiness requirements.
Other conditions are required. For full eligibility criteria see the program guide.
What does this Grant Funding Cover?
The Boost Your Business Technology grant covers:
- Assessing your current use of technology and identify your business needs to create the Digital Adoption Plan (DAP).
The interest free loan covers:
- Acquiring/updating/expanding IT equipment
- Installing new technologies
- Training of staff, materials, and support services related to the new onboarded technology.
- Advisory services for implementation of the Digital Adoption Plan
How it Works
Confirm your eligibility with the CDAP grant assessment tool and by reviewing the program guide.
You then apply online by visiting the Grant Funding page. Click on the appropriate “Apply Now” button found under the Boost Your Business Technology grant section, and it will open a new page which will ask you to create a new user account. Once created you will need to confirm your eligibility.
From there you can then work with a digital advisor (which are pre-vetted and picked by you from the Digital Advisor Marketplace) to develop your businesses digital adoption plan.
Once the plan is complete and you have received and invoice from the digital advisor you can then submit your claim to receive your grant. You then have 6 months from the completion of your approved plan to make a loan request.
In Conclusion
To find out if your business is eligible for any of these grants you can check out the CDAP grant assessment tool. This easy-to-use form asks questions (multiple choice) needed to determine your eligibility.
If you have any questions about the Canada Digital Adoption Program (CDAP), you can visit their website or contract them directly at cdap@occ.ca or via phone at 1-833-751-8111.
If you would like eSilverStrike Consulting to help advise or implement recommended features for the Grow Your Business Online grant, please contact us.
