About the Canada Digital Adoption Program (CDAP)

• Internet connectivity
• Shipping of goods purchased through the e-commerce platform
• Purchases made prior to grant approval
• Renewal of digital services such as domain names or software subscriptions (including existing e-commerce subscriptions)
• Signage and printing
• Logo redesign and rebranding
• Owner's salary or current employee salary for executing the project
• Purchase of land, buildings or vehicles
• Intangible assets such as goodwill, whether capitalized or expensed
• Depreciation or amortization expenses
• Interest on invested capital, bonds or debentures
• Bond discount
• Monthly mortgage, loan and/or rent payments
• Refinancing of an existing debt
• Losses on investments, bad debts and any other debts
• Fines or penalties
• Litigation
• Fees for administrators, including payments to any member or officer of the business’s board of directors
• Opportunity costs
• Hospitality and entertainment costs
• Franchise fees and/or franchise licence costs
• Lobbyist fees
• New capital expenditures
• Consulting fees for submission of CDAP application or any costs not related to the acquisition or set-up of technology solutions

Yes, you can apply to both grants.

No, you can apply only once to Grow Your Business Online over the entire duration of the program. Moreover, your business can only receive the micro-grant once.

A consumer-facing business is one that sells products or services directly to end consumers. It may have a bricks-and-mortar presence as well as an online presence.

A business that sells to other businesses or engages in wholesale trade may be considered a consumer-facing business if it also sells directly to end consumers. For example, a painting supply store that sells paints to professional painters could be eligible for the program if they open an online store to sell paints directly to consumers. As another example, a farmer selling produce mainly to grocery stores could be eligible for the program if they started to sell directly to consumers through an online platform that enables consumers to order/reserve and prepay for products for pick up at a road side stand.

Businesses that are not considered consumer-facing are those that focus primarily on wholesale trade or sell only to other businesses. Businesses that engage in drop-shipping or online reselling are also not considered consumer-facing.

One (1) of the following:

• Master business license
• Article of incorporation
• GST return from CRA

We prefer that you provide a government document that confirms your business registration. If you provide only a GST/HST number, then this number must be verified via the GST/HST Registry.

Yes. Consumer facing businesses are those that provide the majority of their services directly to consumers. Most will have a bricks and mortar presence where consumers can access their goods and services. Some will also have a virtual 'front door' through their online presence which also provides services to consumers.

A business can go up to 5 outlets for the same business. These outlets have to be for a single, regional business and the organization does not offer opportunities for other people to buy franchises.

Yes, as long as each business is registered with its own business number.

A shareholder does not count as an employee. Businesses must have at least one employee on payroll. Business that don't have any employees may also be eligible if they have made at least $30,000 in annual revenue in the most recent tax year.

Part time or fixed-term employees count as eligible employees, but freelance or contract (fee for service) employees do not.

No, there is no cap.

Your business has to attest that you had a gross revenue of at least $30,000 in the last 12 months of operations or since incorporation/registration. Therefore you would not be able to apply if you are "on track" to meet the threshold, you would have to wait until the threshold has been met.

Your employee must have been working at the business for at least three (3) months.

No. Your business must provide a copy of the invoices and proof of payment in order to receive a reimbursement of costs.

Your business must provide an invoice of the expense and proof of payment.

Your business must pay for the expense before claiming the micro-grant, and a copy of their invoice will be required to do so. The invoice must be dated after the signature of your grant agreement.

If the invoice is based on monthly payments, your business should make an advance payment for the full $2,400 before claiming the micro-grant. The invoice should show a credit balance.

The micro-grant is not inclusive of taxes. Micro-grants will be issued based on the cost of the expense(s) before taxes; refundable tax charges will not be reimbursed.

No, your business must have an e-commerce presence to be able to seek funds for digital marketing.

Your business can prepay the monthly subscription up to $2,400 and submit the invoice and proof of payment to claim the micro-grant.

The re-design of an existing site is not eligible. However, upgrading existing website for added functionality (new plugins or features) would be eligible.

The micro-grant can be used to pay a contractor only if the contractor operates an independent business (registered and/or incorporated) that provides digital-adoption services. The grant cannot be used to pay an employee's salary.

The $2,400 micro-grant cannot go to consultants or agencies working on behalf of the ultimate SME recipients to help them apply for CDAP.

Your grant cannot be used solely for website search optimization or social media advertising; such uses must be tied to an overall e-commerce implementation plan and not a standalone item.

Hardware and accompanying non-ecommerce related software are eligible for up to 20% of total grant amount.

• An example of limited coverage for software would be any software that is bought with the equipment that is required to support an e-commerce strategy. For instance, if a small business buys a new e-commerce integrated point of sale (POS) system that costs $1,300, CDAP will cover 20% or $260.

The maximum amount of the grant that can be allocated to hardware and related software is 20% of $2,400 or $480.

E-Commerce related software is eligible for 100% of grant amount and can include the following:

• Software to track and manage product inventory, as well as fulfill and ship orders,
• Software for product databases
• Software to track sales, market to customers, offer discounts, maintain a loyalty programs
• Software to simplify marketing
• Cyber Security software or certifications

Please note all eligible costs must be directly tied to the sale of goods and services online (i.e. online reservations/ordering or chat bot function on website), and you will need to clearly outline this in your application.