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Funding Programs for Capital Investment and Technology Adoption
By Mentor Works
Business capital can be expanded and improved with technology adoption and adaptation in an ever-changing business landscape. Businesses in Canada have many options to adapt and adopt new technological solutions, including artificial intelligence (AI) tools and clean technology solutions. Investing in these solutions can improve their processes or systemizations, allowing Canadian businesses to expand their capital investment scope and reach across a wide range of markets. In doing so, they can attract new customers and capture the attention of existing ones.
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.
These three federal government funding programs can help your Canadian business access eligible capital for tech adoption projects. You may not be able to access a listed funding program if you read this article in the future. Find out what programs are currently open by reviewing the Capital Investment & Technology Adoption Funding Directory.
Capital Investment Grants and Loans for Small Businesses
The Canada Digital Adoption Program (CDAP)
The Canada Digital Adoption Program (CDAP) supports small and medium sized enterprises (SMEs) that need to adopt digital technologies in order to remain competitive in this digital age. CDAP offers two funding streams: Grow Your Business Online and Boost Your Business Technology.
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
By sharing risk with lenders, the Canada Small Business Financing Program helps Canadian small businesses obtain loans from financial institutions. SMEs can apply directly to their choice of Canadian financial institution under this program offered by Innovation, Science, and Economic Development Canada.
- 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)
In its upcoming 2023 application intake, the Canada Growth Fund (CGF) helps Canadian businesses secure the private capital to accelerate the deployment of technologies that will reduce carbon emissions and grow the 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.
What You Need to Know About Business Funding
SME businesses are eligible for funding through the Canadian government programs listed in this blog. Check out our free Canadian Startup Business Resources if your business does not qualify for a given program.
To learn more about the active programs that could fit your business’ needs and to stay informed about the latest government funding news, please connect with the Mentor Works, a Ryan Company team. Subscribe to our Weekly Funding Newsletter to stay updated.
Interested in learning more about the government funding programs listed in this blog? Join us for an upcoming webinar where our funding professionals will discuss high level details about government funding opportunities.