Boost Your Business Technology: Program Guide

Part 1 - General information

1.1 Introduction

The Boost your Business Technology Stream offers financial support to small and medium Canadian-owned enterprises (SMEs), such as small manufacturing and food processing operations, to adopt new technologies. Support for these businesses will be in the form of grants to offset the cost of retaining Digital Advisors who will develop Digital Adoption Plans tailored to the business. The grant will cover up to 90% of the cost to develop the digital plan, up to a maximum grant payment of $15,000.

To support the implementation of the digital adoption plan, SMEs will be able to apply for a zero-interest loan from the Business Development Bank of Canada (BDC) (up to $100,000). In addition, the Boost Your Business Technology Stream will make available youth placement wage subsidies of up to $7,300 per youth participant aged 18-30. SMEs can apply for more than one wage subsidy to hire multiple skilled youth to support and implement their digital transformation. Eligible SMEs must apply for the wage subsidy through the CDAP Portal and will be assisted by Magnet, a digital community workforce system housed within the Toronto Metropolitan University. Magnet has work placements available across Canada and will support employers with access to a nation-wide pool of youth with skills to support the implementation of their digital adoption plan.

This program guide will be periodically updated and revised.

1.2 Who can submit an application – eligibility criteria

1.2.1 A director of a corporation or owner of a sole proprietorship, as well as any of their authorized representatives, may submit an application for the Boost Your Business Technology Grant. Applicants are required to attest and certify that their business meets all of the following eligibility criteria:

1. Is an active business whose sole proprietor is a Canadian resident
   Or
   Is an active business incorporated under the laws of Canada or a province or territory
2. Is a for-profit business
3. Has between 1 – 499 full time equivalent employees^{Footnote 1}
4. Has at least $500,000 of annual revenues but not more than $100,000,000 in one of the previous three tax years from the date of submitting a grant application^{Footnote 2}
5. Is a privately owned business
6. Is a Canadian-controlled Private Corporation (CCPC) as defined by the Canada Revenue Agency (applicable if the business is incorporated under the laws of Canada or a province or territory)
7. Is a business that respects human rights codes, labour, environment and anti-corruption standards, as well as engages exclusively in legal activities
8. Is not a business that has a class of shares publicly traded on a stock exchange (in Canada or outside)
9. Is not a majority or wholly owned subsidiary or branch or sales office of a multinational corporation (MNC)
10. Is not a business whose revenue model is designed to be economically dependent on non-commercial sources such as direct government funding or private donations
11. Is not a government organization or body (other than an Indigenous entity or body) or an entity in which a government organization or body (other than indigenous entity or band) owns equity interests
12. Is not a not-for-profit entity such as a union, charitable, religious or fraternal organization or business owned by such organizations, nor a business that exists as a fundraising vehicle for charities
13. Is not a business in which equity interests are held by any current member of the Parliament of Canada or any current member of the Senate of Canada other than a business whose equity interests are publicly traded
14. Is not a business that promotes violence, incites hatred or discriminates on the basis of race, national or ethnic origin, color, religion, sex, age or mental or physical disability nor does it trade with countries proscribed by the government of Canada
15. Is not a business that directly or indirectly promotes sexual exploitation or disseminates media content that is sexually explicit
16. Is not a business that has been determined to have pled guilty to or been convicted of tax evasion or a criminal offence

1.2.2 Applicants must meet the eligibility criteria at all times while in the program: from grant application submission to grant payment, as well as the during term of the BDC zero interest loan and the subsidized youth placements.

1.2.3 Applicants must inform the program of any change in their eligibility while in the program.

1.2.4 Innovation, Science and Economic Development Canada (ISED) may validate the eligibility criteria by seeking supporting information and documentation from the applicant at any point in the application process for the grant. The eligibility criteria and application process for the BDC Zero Interest Loan are covered under Part 4 of this Program Guide. The eligibility criteria and application process for the subsidized Youth Placements are covered under Part 5 of this Program Guide.

1.2.5 If ISED determines that the applicant does not continue to meet the eligibility criteria, ISED may terminate the Boost Your Business Technology Grant Agreement. Applicants whose Grant Agreements are terminated will be responsible for paying any and all costs associated with retaining a Digital Advisor under sections 3.2 and 3.3 of this Program Guide. ISED may also seek recovery of funds in accordance with section 3.10 (Recovery of Funds) of this Program Guide.

1.3 Additional documentation in support of eligibility

1.3.1 As part of the eligibility determination process, ISED may ask for additional supporting documentation or assurances such as:

• Assurance that the applicant is in good standing with regard to all federal, provincial, territorial and municipal laws and regulations;
• Corporate documents as the program deems necessary (e.g. articles of incorporation, corporate by-laws and related documents);
• Documents confirming annual revenue levels, such as notices of assessment or other documents issued by the CRA, and/or financial statements (including audited statements) prepared and signed by a Chartered Professional Accountant (CPA);
• Documents confirming numbers of full time equivalent employees, such as T4 Summaries, deductions for the Canada Pension Plan, Employment Insurance premiums, and income tax from remuneration or other amounts the applicant pays to employees;
• Confirmation that any person including any consultant or in-house lobbyist who lobbies on its behalf to obtain funding under the program and who is required to be registered pursuant to the Lobbying Act is registered pursuant to that act;
• Confirmation that the applicant has not, nor has any person on its behalf, engaged any person (other than an employee) for the purposes of obtaining program funding and paid, or agreed to pay, that person a commission, contingency or success fee or any other consideration (whether monetary or otherwise) that is dependent upon the applicant receiving program funding;
• Assurance that any former public servant who derives benefit from the Grant Agreement will be in compliance with the Values and Ethics Code for Public Sector;
• Assurance that any former public office holder who derives a direct benefit from the Grant Agreement will be in compliance with the Conflict of Interest Act and Post-Employment Code for Public Office Holders; and,
• Assurance that no Member of the House of Commons or Senate will benefit from the grant.

Part 2 - General instructions for the grant

2.1 General instructions, terms and conditions

Applicants who submit a grant application agree to be bound by the terms and conditions set forth in this Program Guide and the Grant Agreement. In case of any inconsistency between the Grant Agreement and this Program Guide, the terms of the Grant Agreement will prevail.

2.1.1 Applicants must act in compliance with guidelines governing the program as set out in this Program Guide and the Grant Agreement.

2.1.2 ISED has the sole discretion to cancel funding at any point in time with advance notice, in the event that program terms and conditions are amended or terminated, or under other circumstances that are deemed appropriate.

2.2 Failure to comply

2.2.1 Should ISED determine that the applicant is not in compliance with all of the terms and conditions as set out in this Program Guide and the Grant Agreement, the Grant Agreement may be terminated by ISED, at its sole discretion, and the applicant may be required to repay the grant in accordance with section 3.10 (Recovery of Funds) of this Program Guide.

2.3 Disclosure of information

2.3.1 ISED may disclose any information submitted in this application within the Government of Canada or to outside entities (e.g., Digital Advisors, BDC, Magnet), subject to applicable restrictions associated with privacy, confidentiality and security, for the following purposes:

• To reach a decision on the application;
• To support transparency, accountability and citizen engagement; and
• To respond to requests made under the Access to Information Act and the Privacy Act.

2.3.2 Any information (including any personal information) obtained in confidence from any third party by the applicant and provided to ISED under the terms of this Agreement, will be marked as "confidential" by the applicant and the applicant shall ensure it was disclosed to ISED with the consent of the third party. ISED shall ensure that any disclosure of the third-party information is done in compliance with all legal requirements relating to personal information and third-party confidential information.

2.4 Enquiries

All enquiries regarding applications for grants under the Boost Your Business Technology stream must be sent in writing through the contact CDAP online form.

2.5 Public announcements

ISED retains the right to make public announcements and to publish the names of funding recipients and the value of their grants.

ISED may request permission from applicants to feature success stories derived from program support for communications purposes.

Part 3 – Grant application instructions and method of payment

3.1 Application submission process

3.1.1 Applicants must submit their grant applications through the CDAP Portal. Applications submitted in an alternate format will not be accepted.

3.1.2 Applicants may only submit one grant application per business number.

3.1.3 Directors of corporations and owners of sole proprietorships may apply for the Boost Your Business Technology grant. Representatives of those businesses that are authorized by the corporate directors or owners of sole proprietorships may also apply for the Boost Your Business Technology grant.

3.1.4 Should there be technical difficulties accessing or using the web-based system, applicants should contact the program through the contact CDAP online form.

3.1.5 Applicants will be asked to submit the following information:

• Username
• User email address
• Business Number
• Legal name of business
• Operating name of business
• Canadian address of the applicant business

3.1.6 As part of the application process applicants must complete the free Digital Needs Assessment (DNA) survey. The DNA is a comprehensive analysis of a business' digital maturity against a global industry-specific set of benchmarks. The DNA will help applicants understand their digital capabilities and maturity.

3.1.7 The applicant must attest to meeting all of the eligibility criteria identified in section 1.2. The program will endeavor to confirm eligibility within 20 business days.

3.1.8 Upon confirmation of eligibility, the applicant will have up to six months to accept the terms of the Grant Agreement and this Program Guide. Should the applicant not accept the terms of the Grant Agreement and this Program Guide within six months, a new eligibility validation will need to be performed by the program.

3.1.9 The submission of the application does not constitute a commitment on the part of the ISED to award funding. All applicants will receive a notification once their eligibility is confirmed.

3.2 Retaining a digital advisor

3.2.1 Upon accepting the terms of the Grant Agreement, the applicant will have access to the Digital Advisor Marketplace system. The system contains information on registered Digital Advisory service providers. The applicant is solely responsible to pick a digital advisor from the system that will produce a Digital Adoption Plan for them. A contractual relationship is only between the digital advisor and the applicant. The applicant will have up to 9 months from when the Grant Agreement is digitally signed to submit a Digital Adoption Plan and invoice from a listed digital advisor in order to receive a Boost Your Business Technology grant.

3.2.2 As the business relationship is only between the applicant and the digital advisor, the applicant should ensure that any contractual agreement with the digital advisor addresses the scope of work, costs directly associated with the production of the digital plan, and that the digital advisor will deliver a Digital Adoption Plan in accordance with the program's requirements identified in the CDAP digital adoption plan guide.

3.2.3 Although pre-selected by ISED, digital advisors are not agents, partners, or employees of ISED. ISED does not warrant the quality of the services provided by such digital advisors and is not responsible for any losses or damages, which may result from using the services of a digital advisor. Any disputes must be resolved between the applicant and the digital advisor.

3.2.4 The applicant is entirely responsible for ensuring full payment of invoices for services rendered by any digital advisor.

3.3 Eligible costs

Eligible costs are costs incurred in Canada by the applicant directly associated with retaining a registered digital advisor on the Digital Advisor listed on the Digital Advisor Marketplace and for the direct production of a Digital Adoption Plan for the applicant. Eligible costs include:

• Fees, commissions and charges by organizations providing Digital Advisory services and registered on the Digital Advisor Marketplace website for the production of a Digital Adoption Plan;
• Applicable federal and/or provincial sales taxes applied to the fees and commissions charged by the digital advisors registered on the Digital Advisor Marketplace and only for the purpose of producing a Digital Adoption Plan for the applicant.

3.4 Ineligible costs

Any activities not directly related to the development and production of a Digital Adoption Plan by the digital advisors registered on the Digital Advisor Marketplace. Ineligible costs could include, but are not limited to:

• any services offered by the digital advisor to help, assist or otherwise support the applicant in the application process for a Boost Your Business Technology Grant, Business Development Bank of Canada Zero Interest Loan, or Youth Placements;
• any services offered to support the implementation of solutions or technologies recommended in the Digital Adoption Plan, including costs associated with implementation of the Digital Adoption Plan (i.e., hardware, software, etc.);
• meals, transportation (e.g., flights);
• any other activities not directly related to the development and production of a Digital Adoption Plan by the organizations registered on the Digital Advisor Marketplace.

3.5 Financial assistance

Financial assistance will take the form of a non-repayable grant up to a maximum set out below.

3.6 Determining the value of the Boost Your Business Technology grant

3.6.1 The amount of the Boost Your Business Technology grant will be up to 90% of the eligible costs, up to a maximum grant value of $15,000 (including applicable taxes).

3.6.2 ISED will determine the size of the grant payment on the basis of an invoice containing the final cost of the Digital Adoption Plan developed by a digital advisor registered on the Digital Advisor Marketplace.

3.6.3 Total Canadian government assistance for the Digital Adoption Plan, including federal, provincial/territorial and municipal financial assistance, will not exceed 100% of eligible costs funded. In no instance will the total Canadian government assistance be allowed to exceed the total of eligible costs.

3.7 Method of grant payment

3.7.1 Grant payments will be made on the basis of documented claims for reimbursement of eligible costs incurred. The applicant must upload through the CDAP Portal the following documents which must be to ISED's satisfaction:

• A legible copy or clear evidence of the Digital Adoption Plan produced by a digital advisor registered on the Digital Advisor Marketplace. The Digital Adoption Plan must meet the requirements identified in the CDAP digital adoption plan guide, including the date that the plan was completed.
• A final invoice identifying all costs of the Digital Adoption Plan that was developed by a digital advisor registered on the Digital Advisor Marketplace. The invoice must contain:
  • Full name and address of digital advisor
  • Billing information of applicant including full legal and operating name and address
  • Invoice date
  • Invoice number
  • Payment terms
  • Quantity, description and price of services provided to produce the DAP (excluding taxes)
  • Any rebates or discounts, if offered, by the Digital Advisor
  • Subtotal of costs
  • Itemized taxes (PST, GST, or HST)
  • Final Cost (inclusive of taxes)
  • HST # of Digital Advisor

3.7.2 The applicant must also complete a client satisfaction survey at time of submitting the plan and invoice. Additionally, they are expected to complete an impact survey one year after receiving their grant payment.

3.7.3 ISED will not pay any incurred costs in the event that an applicant ceases to meet the eligibility criteria under the Boost Your Business Technology Stream.

3.7.4 ISED may at any time before the payment of a grant revalidate eligibility criteria.

3.7.5 Upon submission of documents identified in section 3.7.1 to ISED's satisfaction, ISED will make reasonable efforts to approve, provide funding confirmation and disburse the grant payment to the applicant within a 30-business-day period.

3.7.6 Submission of multiple digital adoption plans by businesses with the same owner

Should two or more Digital Adoption Plans be submitted by applicants with the same owner, shareholder(s) or from the same franchise, ISED may require additional documentation from the applicant to verify that invoiced costs for the production of the Digital Adoption Plan meet the requirements as identified in section 3.7.1 of this Program Guide as well as the CDAP digital adoption plan guide. This additional documentation may include, but is not limited to:

• Proof of payment of the invoice to the digital advisor for the production of a Digital Adoption Plan
• Interview notes, timesheets (including hours, consulting rates, and dates) and attestation regarding the collective costs incurred for related^{Footnote 3} applicants.

3.7.7 ISED may also require additional documentation or information from applicants where Digital Adoptions Plans contain similar or identical content. Where possible, Digital Adoption Plans should demonstrate sufficiently distinct analysis of business needs and technology recommendations based on the individual work undertaken with each business and as prescribed in the CDAP digital adoption plan guide.

3.7.8 ISED may withhold the disbursement of the grant until such time that it is satisfied that the applicant has met all of the requirements identified in this Program Guide and Grant Agreement. The withholding of grant payment does not absolve the applicant from any responsibility to ensure full payment of invoices for services rendered by any digital advisor.

3.8 Audits

3.8.1 ISED may conduct periodic audits of the applicant to ensure compliance with the terms and conditions set forth in this Program Guide and the Grant Agreement. In the event of an audit, the applicant is required to comply with any requests for information or documentation. Therefore, applicants must retain an accurate archive of transactions within their organization for a period of seven years from the date they were submitted to ensure necessary records  are readily accessible for audit or review purposes and to avoid delays or denial of funding (e.g., meeting records, hourly invoices and rate, proof of payment, work agreement, etc.).

3.8.2 The applicant will comply with any requests for documentation which could be reasonably requested in writing by the Auditor General of Canada as part of an audit of the Boost Your Business Technology stream.

3.9 Fraud or misrepresentation

3.9.1 The applicant will comply with any requests for information or documentation made by ISED in identifying suspected fraudulent activity or misrepresentation under the Boost Your Business Technology Stream.

3.9.2 The applicant will be given an opportunity to clarify in writing its position in any inquiry in relation to any suspected fraud or misrepresentation.

3.9.3 Should, further to its inquiry, ISED determine that the applicant has participated in or committed fraud or made misrepresentations with relation to the program, ISED will inform the applicant in writing of its determination and the applicant will be required to repay the grant in accordance with section 3.10 (Recovery of funds).

3.10 Recovery of funds

3.10.1 Fraud or Misrepresentation. Funding provided as a result of misrepresentation or fraud by the applicant will be repayable in full (with any interest) within thirty (30) days of written notice from ISED.

3.10.2 Overpayment. Where ISED determines that the amount of the grant disbursed exceeds the amount to which the applicant is entitled, the applicant shall repay the excess amount promptly and within thirty (30) days of written notice from ISED.

3.10.3 Breach. Any breach of the terms and conditions contained in this Program Guide or the Grant Agreement, such as being ineligible or non-compliant, may result in the applicant being required to repay the grant funding.

3.10.4 For another reason. If an applicant decides to return the funding because they don't want to continue with the Program for another reason, ISED will accommodate the return of funds. However, the applicant still needs to comply to the work agreement with the digital advisor (e.g., pay the DA for work performed), as per section 3.2.4 of this Program Guide.

3.11 Monitoring and reporting

To support ISED in its efforts to measure the economic impact of the Boost Your Business Technology Stream, funding recipients are asked to respond to user experience and outcome surveys that will be sent by the program.

3.12 Intellectual property rights

Intellectual property created by funding recipients will remain the property of the funding recipients. ISED may seek access to use intellectual property developed by funding recipients or through a third party. The negotiated rights to use this material may include further use of data for research purposes and/or publishing the intellectual property on ISED's website, in printed documents or other publications.

Part 4 – Business Development Bank of Canada zero interest loan

4.1 Application process

4.1.1 Applicants interested in a BDC zero interest loan must begin their application process using the CDAP Portal upon receiving a Boost Your Business Technology grant. Applicants will have up to six months after notification of grant payment to apply for a BDC zero interest loan. The BDC loan must be used solely for the implementation of an approved digital adoption plan.

4.1.2 Applicants must meet the eligibility requirements as identified in section 1.2 as well as BDC's credit worthiness and eligibility criteria to get a zero interest loan. Completing a digital adoption plan and submitting an application to the BDC does not guarantee approval for the BDC zero interest loan. Visit BDC's website for details.

4.1.3 Once eligibility is validated, the applicant will be directed to BDC's electronic intake system to complete the application process. Applicants should reference information posted on the BDC zero interest loan website for loan terms and eligibility criteria.

4.1.4  While applicants can apply for the zero interest loan for multiple businesses, note that applicants are limited to a maximum of $200,000 per borrowing group. Applicants should reference BDC's website for further details on loan limits and borrowing groups.

4.2 BDC loan fast track process

4.2.1 For applicants that already have an existing Digital Adoption Plan through an ISED recognized digital adoption program and do not require a Boost Your Business Technology Grant, the program offers a fast-track process to the BDC zero interest loan.

4.2.2 Applicants must begin their application process using the CDAP Portal.

4.2.3 Applicants must meet the eligibility requirements as identified in section 1.2 as well as BDC's credit worthiness and eligibility criteria to get a zero interest loan. Applicants must also submit evidence of having obtained a Digital Adoption Plan from a recognized provincial or territorial program within the last 24 months (e.g., Atlantic Canada Opportunities Agency: Digital Acceleration Pilot; Digitalization Competence Center (DCC); Programme Audit Industrie 4.0 / ESSOR – Volet 1B (Quebec); etc .). Completing a digital adoption plan and submitting an application to the BDC does not guarantee approval for the BDC zero interest loan.

4.2.4 The list of recognized provincial and territorial programs are identified and may be added to over time.

4.2.5 Once eligibility and the existing digital plan is validated, the applicant will be directed to BDC's electronic intake system to complete the application process. The applicant will have 30 days once eligibility is validated to proceed to BDC to complete the application process for the loan. Applicants should reference information posted on the BDC zero interest loan website for loan terms and eligibility criteria.

Part 5 – Youth placements

5.1 Application process

5.1.1 All eligible applicants that have received funding confirmation for a Boost Your Business Technology grant or have obtained a Digital Adoption Plan from a recognized provincial or territorial program may apply for a subsidized youth placement. Applicants should consult the list of recognized provincial and territorial programs.

5.1.2 Eligible applicants must meet the eligibility requirements as identified in section 1.2.

5.1.3 Eligible applicants seeking a youth placement subsidy must begin their application process through the CDAP Portal. The process is administered by Magnet, a digital community workforce system housed within the Toronto Metropolitan University. Magnet has work placements available across Canada and will support employers with access to a nation-wide pool of youth with skills to support the implementation of your digital adoption plan. Applicants are encouraged to visit Magnet's CDAP-specific microsite to learn more.

5.1.4 Applications will be selected on the basis of offering a valuable learning experience for a youth, aged 18-30, to support the company's digital transformation.

5.1.5 Applicants will be given access to Magnet's Portal, which will be used to find and hire a qualified youth as well as to connect with Magnet's dedicated support team who will assist with steps of the process. Access to the Magnet Portal will be available through the CDAP Portal once an Applicant is eligible to apply, as outlined in section 5.1.1.

5.1.6 Applicants will create a profile in the Magnet Portal, which will be used to match the Applicant with qualified youth.

5.1.7 Applicants will review a list of qualified youth and then interview desired candidates.

5.2 Wage subsidy provisions

5.2.1 Applicants can receive multiple subsidized youth placements through the Boost Your Business Technology Stream.

5.2.2 The youth placement subsidy will be up to $7,300 per youth participant and will be paid as reimbursement upon production of proof of wage payment.

5.2.3 The program does not permit the 'stacking' of other government funding (federal, provincial/territories, municipal) for the same youth placement.