Articles

Canadian Digital Adoption Program (CDAP) Highlights

June 30, 2022

Based on information available on March 11, 2022.

Some of the statistics behind the PCAN program

According to the most recent data from Statistics Canada (June 2021), the statistical proportions of businesses are very comparable across Canada as well as within Quebec:

  • Almost 70% have no employees (self-employed)
  • 99.8% are SMEs with at least 1 employee that contribute to 88.3% of jobs!
    • 97.9% are small businesses with 1 to 99 employees providing 67.7% of jobs
    • 1.9% are medium-sized companies with 100-499 employees providing 20.6% of jobs
    • 0.2% are large companies with 500 or more employees providing 11.7% of jobs

Number of businesses with at least 1 employee, by size (Statistics Canada, June 2021)

The recent global pandemic has highlighted the fact that Quebec and Canadian SMEs are lagging behind in the digital shift, even if only in terms of adopting solutions to facilitate teleworking and process automation.
Considering these statistics and the consequences of the pandemic, isn’t there a need to accelerate the digital shift of most Quebec companies?

The new Canadian Digital Adoption Program (CDAP) is designed to do just that.

PCAN Registration

Until March 31, 2025, a Canadian SME can benefit from financing of up to $124,700, including a maximum of $24,700 in taxable but non-refundable grants.

Register online via the program site → Home – PCAN (ic.gc.ca).

Basic eligibility criteria for the CANP

Being a business:

  1. private for-profit company;
  2. federally or provincially incorporated, or be a sole proprietor resident in Canada;
  3. with 1 and 499 full-time equivalent employees
    (Note: an incorporated “solopreneur” who pays himself a salary is eligible).

Use the assessment tool to ensure that your company is eligible and meets the criteria for the grants.

Important Note: Only an owner or director, as indicated in the company’s articles of incorporation, may complete the application form, and the company will need to meet all eligibility criteria.

The two components of the PCAN program (in brief)

Stream 1: Develop your online business

Purpose (in brief)

  • Develop e-commerce
  • Create or improve a website and online transactional business.

Targets

  • 90,000 SMEs with new revenues through e-commerce;
  • 11,200 young e-business advisors to help SMEs.

Specific criteria

  • Eligible are: SMEs that are accessible to customers or provide in-person services to customers.
    Note: according to the program’s evaluation tool, a business that wishes to “undertake a digital transformation” could qualify for Stream 1 if it does not meet the specific eligibility criteria for Stream 2.

Required commitments

  • Commit to maintaining the digital adoption strategy for six months after the intervention;
  • Agree to participate in follow-up surveys, to have their information sent to the Government of Canada (ISDE and Statistics Canada) and to have their company name published as a recipient of funding.

Grants (non-refundable)

  • 2,400 non-reimbursable to cover the costs associated with a digital advisor enrolled in CANP.

Loan

Not applicable.

Eligible costs

  • Implementation of an e-commerce plan (online booking, online ordering, electronic payments, etc.);
  • Optimization of the website’s search engine;
  • Installation of an e-commerce platform (including fees and subscription costs);
  • Support for an e-commerce strategy;
  • Social media advertising;
  • Creation of customer databases.

Ineligible costs

  • Connectivity costs (network, internet, WiFi, etc.);
  • Costs associated with shipping goods purchased on an e-commerce platform.

Stream 2: Enhance your company’s technologies

Purpose (in brief)

  • Increasing competitiveness and productivity through digital technology
  • Digital shift and automation of B2B and B2C processes and procedures.
  • Step 1: Develop a digital adoption plan
  • Step 2: Implement (execute) the digital adoption plan

Targets

  • 70,000 SMEs with a digital adoption plan implemented, some with a BDC loan;
  • 16,800 digital internships for new graduates.

Specific criteria

  • Annual income of at least $500,000 in any of the three preceding fiscal years
  • Are ineligible:
    • Chain companies, franchises or registered charities;
    • Representatives of multi-tiered marketing companies;
    • Real estate brokerage companies.

Required commitments

  • Provide basic information on the initial application;
  • Assess your company’s digital maturity by completing a digital needs assessment.Once your digital needs assessment is complete:
  • You will have access to the PCAN digital advisor pool and choose a digital advisor to partner with to develop your plan.

Grants (non-refundable)

  • Step 1: 90% of the cost of developing a digital shift plan by a PCAN-recommended digital consultant, up to $15,000;
  • Step 2: $7,300 in new graduate wage subsidy to support implementation of the plan (via Magnet).

Loan

  • Step 2 only:
    • Loan of at least $25,000, free of charge and interest;
    • Repayable over 5 years with 12 months principal deferral (total of 6 years);
    • The maximum loan amount is determined by your sales volume:
      • Up to $50,000 for income under $5 million
      • Up to $100,000 for income of $5M or more;

The loan is not guaranteed (subject to BDC criteria).

You have one year from the completion of your approved digital adoption plan to apply for a loan.

Eligible costs

Not specified.

Ineligible costs

Not specified.

Note that for Component 2 – Improve Your Company’s Technology of the program, there is an accelerated procedure to access the BDC interest-free loan directly if you have already completed one of the following programs:

  • Industry 4.0 Audit Program (in Quebec)
  • Digital Boost 2.0 (in New Brunswick)
  • Atlantic Canada Opportunities Agency: Digital Acceleration Pilot (Maritime Provinces)

For more information

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General information

Details on Component 2

 

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