Canada Digital Adoption Program (CDAP)
or Digital Modernization and Adoption Plan (DMAP)?
Do you own a small or medium-sized business in Ontario, Canada? Good news! The Canadian Federal Government and the Provincial Government of Ontario have exciting funding programs to help you use technology to build your business.
However, now you have a choice. These programs are NOT stackable. However, should you create a DMAP strategy and the resulting project does not get approved for funding through the Technology Demonstration stream, that strategy can be used to fast track your business to the BDC 0% loan funding from CDAP.
The following chart breaks down the things for you to consider.
| CDAP | DMAP | |
|---|---|---|
| Criteria | Canadian for profit SME with 1-499 employees and 500k in revenue | Ontario for profit SME with 1-499 employees and 500k in revenue |
| Strategy Funding | Grant - 90% of spend up to $15k | Grant - 50% of spend up to $15k |
| Implementation Funding | 0% interest BDC loan up to $100k | Grant - 50% of spend up to $150k |
The table below compares 2 projects. The project budgets of $16,666 for strategy and $100k for implementation are the CDAP maximum contributions and have been chosen to demonstrate how each program performs at the same investment level.
| CDAP | DMAP | |
|---|---|---|
| Strategy | ||
| Client Contribution | $16,666 | $16,666 |
| Program Contribution | $15,000 (90%) | $8,333 (50%) |
| Client Net Cash | $1,666 | $8,333 |
| Implementation | ||
| Client Contribution | $100,000 via BDC loan | $100,000 |
| Program Contribution | $0 | $50,000 (50%) |
| Client Net Cash | $100,000 | $50,000 |
| Total Spend | $116,666 | $116,666 |
| Client Contribution | $101,666 | $58,333 |
| Program Contribution | $15,000 | $58,333 |
In the example below, the project budgets are set to take advantage of maximum DMAP contributions.
| CDAP | DMAP | |
|---|---|---|
| Strategy | ||
| Client Contribution | $30,000 | $30,000 |
| Program Contribution | $15,000 (90%) | $15,000 (50%) |
| Client Net Cash | $15,000 | $15,000 |
| Implementation | ||
| Client Contribution | $300,000 ($100,000 via BDC loan) | $300,000 |
| Program Contribution | $0 | $150,000 (50%) |
| Client Net Cash | $300,000 | $150,000 |
| Total Spend | $330,000 | $330,000 |
| Client Contribution | $315,000 | $165,000 |
| Program Contribution | $15,000 | $165,000 |
What can you learn from these examples?
- The DMAP program can contribute more to your implementation budget but less to strategy. This is ideal if your implementation project budget can be assessed early in the exploration phase and you have the benefit of being an Ontario based business and have engaged with a digital advisor like Tenzing who can continue working with you through either program.
- The CDAP program can contribute more to your strategy development but less towards implementation. This might be ideal for your business if you have cash on had to fund your project and that implementation budget is much less than 100k. Also consider that the BDC loan amount is stepped based on your revenue so the full 100k may not be available. Check the CDAP page for details.