In a constantly evolving business landscape, businesses must be on the lookout for how to expand and improve their business capital with technology adoption and adaptation. From new advancements in artificial intelligence (AI) tools to adoption of clean technology solutions, Canadian businesses have many options to adapt and adopt new technological solutions. These solutions can improve their processes or systemizations, allowing Canadian business to expand their capital investment scope and have growth and reach across a variety of markets. By doing so, they can capture the attention of existing clients and attract new customers in their expansion goals.
Capital investment and technology adoption government funding programs can support Canadian businesses through grants, loans, and tax credits by offsetting the costs of business expansion and/or new equipment such as adapting to new technology. Read this blog to discover federal and provincial programs currently or soon to be available that can help your business access funding for capital investment and technology adoption projects.
Listed below are three federal government funding programs that can help your Canadian business access eligible capital for tech adoption projects. If you are reading this article at a future date, a listed funding program may not be open. Review the Capital Investment & Technology Adoption Funding Directoryto find programs currently open for intake.
Small Business Grants and Loans for Capital Investment and Technology Adoption
Canada Digital Adoption Program (CDAP)
The Canada Digital Adoption Program (CDAP) is designed to support small to medium sized enterprises (SMEs) that need to make digital adoptions in their businesses to remain competitive in this new digital age. There are two funding streams of the CDAP program: the Grow Your Business Online stream and the Boost Your Business Technology stream.
Funding Amount: Funding amounts from the CDAP program varies according to stream:
- From the Grow Your Business Online stream, eligible applicants may receive up to a maximum of $2,400 in non-repayable grant contributions; or
- From the Boost Your Business Technology stream, eligible applicants may receive up to 90% of eligible project costs up to a maximum of $15,000 per SME in non-repayable grant contributions.
Applicant Eligibility: Eligible applicants for the CDAP program vary according to stream:
Grow Your Business Online stream:
- Is a for-profit business;
- Is registered or incorporated and is consumer-facing;
- Is accessible by consumers in-person;
- Has a minimum of one employee;
- Is committed to maintaining digital adoption strategy for a minimum of six months after program participation; and
- Will participate in follow-up surveys, sharing information with the Government of Canada, and having business published as a recipient of funding.
Boost Your Business Technology stream:
- Business has been incorporated federally or provincially, or the sole proprietor is a Canadian resident;
- Is a for-profit business that is privately owned;
- Maintains 1 – 499 full time equivalent (FTE) employees; and
- a minimum of $500,000 in annual revenues in one of the previous three tax years.
Canada Small Business Financing Program
The Canada Small Business Financing Program helps Canadian small businesses secure loans by sharing risk with lenders, making it easier to get loans from financial institutions. This program is offered through Innovation, Science, and Economic Development Canada and businesses can apply directly through their Canadian financial institution of choice.
- Funding Details: Successful applicants may access up to a maximum of $1,000,000;
- No more than $350,000 may be used for purchasing/improving a leasehold or new/used equipment;
- Financial institutions are entirely responsible for approving the loan; and
- Interest rates are determined by the financial institution and may be fixed or variable.
Applicant Eligibility: Successful applicants must meet the following criteria:
- Small businesses or startups in Canada with $10 million or less in gross annual revenues; and
- Farming businesses are not eligible for this program.
Canada Growth Fund (CGF)
Set to open any day now for its 2023 application intake, the Canada Growth Fund (CGF) helps Canadian businesses secure the private capital to accelerate the deployment of technologies needed to reduce carbon emissions and grow its economy.
Funding Details: Among other tools, Canada Growth Fund offers innovative concessional financing instruments, including those that combine above-market risk with the flexibility to earn below-market returns, thus distinguishing CGF from:
- Proponents who receive funding through grants and contributions; and
- Proponents who are provided with commercial financing on a market-based basis.
Applicant Eligibility: To be eligible for the Canada Growth Fund, applicants must:
- Have a Canadian presence;
- Own the intellectual property; and
- Align with the principles of the Canada Growth Fund.
Getting Started with Business Funding Programs
The Canadian government funding programs listed in this blog are intended for SME businesses. If your business does not meet the requirements of a given program, review our free Canadian Startup Business Resources.
If your business wants to start accessing funding for capital and tech adoption, please connect with the Mentor Works, a Ryan Company team to learn which active program could fit your business’ needs and subscribe to our Weekly Funding Newsletter to stay updated with the latest government funding news.
If you would like access to exclusive details about the programs listed in this blog, please register for an upcoming webinar in which our funding professionals discuss high level details regarding government funding opportunities for Canadian businesses.