COVID-19 had a widespread impact on businesses and the way they operate. The restrictions that were imposed to various extents around the world severely limited many industries that relied on face-to-face interactions. Consequently, this led to a post-pandemic push to conduct more business online, which means that many businesses are seeking to improve their digital capabilities.
With the growing emphasis to conduct more business online, franchise opportunities are becoming increasingly attractive as they offer the advantage of proven business models, comprehensive support, and an established customer base, making them a compelling choice for those seeking to adapt and thrive in the post-pandemic era.
In addition, in an effort to help businesses leverage technology to improve their operations and services, the Canadian government established the Canada Digital Adoption Program (CDAP), a $4 billion investment.
Quick Snapshot: CDAP FAQs
Q: What is the Canada Digital Adoption Program (CDAP)?
The CDAP was a federal initiative launched in 2022 to help Canadian small and medium-sized businesses adopt digital technologies.
Q: Is CDAP still accepting new applications?
No. The CDAP program stopped taking new applications in 2024.
Q: What if I submitted before the cutoff—can I still proceed?
Yes. Businesses that signed a valid grant agreement before February 19, 2024, can still proceed with their grant claim, complete their digital adoption plan, and move forward with the application.
Q: What happened to CDAP overall?
CDAP officially stopped accepting new applicants for its main funding streams due to oversubscription. The program supported over 71,000 businesses and disbursed approximately CAD $4 billion in funding, including grants, loans, and wage subsidies ($1.4 billion in grants and advisory services and $2.6 billion in loans).
The Canada Digital Adoption Program (CDAP) Offered Two Grants
This initiative offered two types of grants for small and medium-sized businesses in Canada.
- Grow Your Business Online – This grant provided up to $2,400 to help a business adopt digital technologies to set up e-commerce and grow online sales. The micro-grant came with support from a network of e-commerce advisors from Small Business BC and Digital Main Street.
- Boost Your Business Technology – This grant gave up to $15,000 for a business to get advice regarding which technologies to pursue. Furthermore, the grant offered up to $100,000 in interest free loans from the Business Development Bank of Canada (BDC) for the implementation of these technologies.
What Does the CDAP Cover?
Grow Your Business Online
This grant helped businesses get the advice they need, and it also alleviated some of the costs associated with the implementation of a digital adoption plan. Eligible costs included:
- Expenses related to the implementation of a digital e-commerce plan
- E-commerce software
- Hardware & accompanying software (up to 20% of the total grant amount).
Visit Digital Main Street for more details on eligible and ineligible costs for this grant.
Boost Your Business Technology
Eligible businesses were able to apply for this grant and a BDC loan. Once approved, the grant’s provisions included:
- Purchasing new IT equipment
- Improving existing IT equipment
- Installing new technologies
- Technology onboarding, which includes staff training and other support services
- Providing additional advisory services related to the digital adoption plan
What Were the CDAP Requirements?
A business received funding through CDAP if it met the specific grant’s requirements.
Grow Your Business Online
Here is a summary of this grant’s eligibility requirements.
An eligible business:
- is for-profit
- is registered or incorporated
- is consumer-facing
- has at least one employee OR had at least $30,000 in annual revenue in the most recent tax year
- makes a six-month commitment to the digital adoption strategy
- will participate in follow-up surveys, share data, and have its name published as a grant recipient
Businesses that were not eligible:
- a corporate chain, franchise or registered charity
- a representative of a multi-level marketing company
- a brokerage firm (e.g. real estate agents, investment advisors, and insurance agents)
- a business that is engaged in online reselling or drop-shipping reliant on third-party suppliers
- a wholesale or distribution business and manufacturer (unless you sell directly to consumers)
Boost Your Business Technology
An eligible business:
- is Canadian-owned
- is for-profit
- has 1-499 employees
- has had at least $500,000 in annual revenue in 1 of the last 3 years
Post-CDAP Digital Strategies for Canadian Businesses
Although the Canada Digital Adoption Program is no longer accepting applications, its impact continues to shape how Canadian businesses think about digital transformation. More than 71,000 businesses benefited from CDAP funding, but many others are still looking for ways to modernize operations without government-backed support. The good news is that there are still practical options available to pursue digital growth.
Alternatives to CDAP Funding
While CDAP was federal, it was not the only option for digital adoption support. Many provinces and municipalities continue to offer smaller-scale grants, subsidies, or tax credits for technology upgrades. For instance, Digital Main Street programs are still helping brick-and-mortar businesses expand online. Checking with your local chamber of commerce, economic development office, or industry association can uncover region-specific opportunities.
Financing Options for Technology Upgrades
Even without CDAP loans, the Business Development Bank of Canada (BDC) and private lenders provide financing for technology investments. Some institutions now offer dedicated “tech adoption” loans or flexible credit designed to cover costs like e-commerce platforms, customer relationship management (CRM) software, and cybersecurity. Exploring financing options tailored to innovation can help businesses bridge the gap left by CDAP.
Phased Digital Transformation Approaches
Digital adoption does not have to be all-or-nothing. Businesses can achieve quick wins by prioritizing upgrades with immediate impact, such as cloud-based accounting tools, digital marketing automation, or inventory management systems. Once the return on these initial investments is clear, it becomes easier to justify larger projects like enterprise resource planning (ERP) software or AI-powered analytics.
Lessons from CDAP’s Framework
Even though CDAP is closed, the structure of its grants offers a useful roadmap. The two-stream model—e-commerce adoption and business technology enhancement—highlights the areas where most businesses can achieve growth. Owners can replicate this by conducting their own “digital audit”: reviewing how they attract customers online, how they manage operations, and where technology could reduce costs or improve customer service.
Building Long-Term Digital Resilience
Ultimately, digital transformation is less about one-time funding and more about building long-term resilience. Whether you’re running a franchise or an independent business, adopting the right digital tools helps protect against future disruptions, attract modern consumers, and scale sustainably. By taking inspiration from CDAP’s framework and leveraging today’s available resources, Canadian businesses can continue moving forward confidently in the digital economy.
Set Your Franchise Business Up For Success
“There is no alternative to digital transformation. Visionary companies will carve out new strategic options for themselves — those that don’t adapt, will fail.” Jeff Bezos (Amazon)
It’s important for businesses, both franchised and non-franchised, to take steps to keep up in the digital age. Businesses that pursue digital advancements will reap many benefits including:
- Lowered overhead costs
- Faster transactions
- Quicker response time
- Efficient ways to manage inventory
- Improved logistics related to the supply chain
If you are considering franchise ownership, then having access to programs like the CDAP can be a huge aid in growing your business. FranNet, a premier franchise consulting firm, is also here to help you succeed as a Canadian business owner. Our consultants will evaluate your specific goals and skills to match you with the right franchise brand. We will guide you as you weigh your options and provide you with the resources you need to make an informed decision. All of this comes at no cost to you! Schedule your free consultation to get started!