Receive $2400

As part of the Canada Digital Adoption Program, the Government of Canada has created a new program to help small businesses across the country.

Eligible businesses will receive a micro-grant to help with the costs related to adopting e-commerce and will be supported by a network of e-commerce advisors or Hosting.ca.

For full program details, please visit the Government of Canada Website.

Application Information

The grant is administered by Small Business BC and is not administered by Hosting.ca.

Approval of funding to successful applicants will be conditional upon the terms and conditions set out in the grant letter received upon acceptance into the program. Following project completion, the business must submit the expense summary report along with receipts and/or invoice copies, with proof of payment, for all eligible project related expenses within 90 days.

Determine your eligibility

Review the following criteria to determine if your business, including sole proprietors and non-profits, is eligible for the program.

Applications can only be submitted by a small business that meets all of the following criteria:

• Is a for-profit business (including for-profit social enterprises and co-operatives)
• Is a registered or incorporated business
• Is a consumer-facing business
• Can be accessed by end-use consumers or provides in-person services to consumers
  • 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.
• Has at least one employee on payroll that is not the owner or a contractor (full time or part time, but for at least three months prior to application) or have had at least $30,000 in annual revenue in the most recent tax year.
• Must commit to maintaining digital adoption strategy for six months after participation in the program
• Must consent to participating in follow-up surveys, sharing information with the Government of Canada (ISED and Statistics Canada), and having the name of the business published as a recipient of funding

The following types of small businesses are ineligible:

• Corporate chains, franchises or registered charities
• Representatives of multi-level marketing companies
• A brokerage firm and their agents (real estate, investment, insurance, etc.)
• Businesses that engage in online reselling or drop-shipping businesses reliant on third party suppliers
• Wholesale or distribution businesses and manufacturers (unless their business model includes direct sales to the end consumer)

Eligible Expenses

Please note that all eligible costs must show a direct tie in to implementing a new e-commerce store in your proposed spending plan. Anything that is not tied to directly selling products or services online, will not be an eligible expense.

Please note that any transactions deemed to be non-arms length between a successful grant recipient and their chosen service provider will be ineligible. A non arms length transaction is defined as a transaction made between related parties as described in Section 251 of the Income Tax Act.

• Costs related to the implementation or improvement of a digital e-commerce plan (e.g. online reservation/booking tools, online ordering systems, electronic payments)
• E-commerce software including:
  • 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
• Hardware and accompanying software up to 20% of total grant amount
  • Examples 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 (including software) as a part of their $2400 plan, CDAP will reimburse 20% of the grant (in this case $480) for hardware.
• Costs related to website search optimization
  • Note: plan cannot be strictly so website search optimization, it needs to be tied to overall e-commerce implementation plan, and not a standalone item.
• Costs related to the installation of an e-commerce platform (including subscription fees/costs)
• Costs of back-office solutions to support an e-commerce strategy
• Costs of social media advertising
  • Note: plan cannot be strictly social media advertising, it needs to be tied to overall e-commerce implementation plan, and not a standalone item.
• Costs related to the creation of customer databases
• Hiring a consultant/agency to execute Digital Marketing initiatives related to your e-commerce store
• Development of new e-commerce website
• Upgrading existing e-commerce site for added functionality (i.e., new plugins, or features)
  • Please note redesign of an existing site is not eligible

Ineligible Expenses

• Costs of connectivity
• Costs related to the shipping of goods purchased through the e-commerce platform
• Purchases made prior to grant approval
• Office Software (e.g., Microsoft Office, iWork, Google Workspace, etc.)
• Renewal of digital services such as domain name, software subscription, ecommerce subscriptions
• Signage and printing
• Logo redesign and rebranding
• Business Owner’s salary or current employee salary for executing the project
• Costs of land, building or vehicle purchase
• Costs of intangible assets such a 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
• Costs related to litigation
• Fees for administrators including payments to any member or officer of the Recipient’s Board of Directors
• Opportunity costs
• Hospitality and entertainment costs
• Franchise fees and/or franchise license costs
• Lobbyist fees
• New capital expenditure
• Consulting fees for submission of CDAP application or any costs not related to the acquisition or set up of technology solution

Application Process

• Before submitting your application, please ensure that all required information is completed. Fill out our Digital Assessment form to get a detailed quote. The application form will require exact details on how the funds will be used to build your website. Incomplete applications cannot be approved to receive a grant. We suggest filling out our form to get these details sent to you.
• Meeting the criteria does not guarantee that the application will be approved for funding.
• Upon review, additional information may be requested from the applicant.
• Only one application per business will be considered.
• Applications are evaluated within three weeks.
• By submitting this application, you allow the Program to share information with the Government of Canada and its 3rd party intermediaries (Digital Main Street, Small Business BC, Alacrity Canada)
• To foster information sharing, applicant information maybe shared with other levels of government and funding programs.
• Personal information is collected for administration and confirming residency, under the Personal Information Protection Act.