In today’s rapidly evolving business landscape, Canadian companies must continuously explore ways to expand their operations and integrate new technologies. From artificial intelligence (AI) tools to clean technology solutions, businesses have numerous opportunities to enhance efficiency, improve systemization, and drive growth across various markets. By adopting these technologies, companies can strengthen their competitive edge, attract new customers, and solidify relationships with existing clients.
Government funding programs play a crucial role in supporting capital investment and technology adoption. These programs offer grants, loans, and tax credits to help businesses offset costs associated with expansion and new technology implementation.
Federal Government Funding Programs for Capital Investment and Technology Adoption
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, some of the listed funding programs may no longer be open. Review the Capital Investment & Technology Adoption Funding Directory to find programs currently open for intake.
1. Canada Digital Adoption Program
The Canada Digital Adoption Program (CDAP) supports small and medium-sized enterprises (SMEs) in adopting digital technologies to enhance their competitiveness. The program offers two funding streams:
- Grow Your Business Online Stream: Provides grants for businesses looking to enhance their online presence.
- Boost Your Business Technology Stream: Supports businesses adopting advanced digital solutions.
Funding Amounts:
- Grow Your Business Online Stream: Up to $2,400 in non-repayable grant contributions.
- Boost Your Business Technology Stream: Up to 90% of eligible project costs, up to a maximum of $15,000 per SME in non-repayable grant contributions.
Eligibility Requirements:
Grow Your Business Online Stream:
- Must be a for-profit business.
- Must be registered or incorporated and consumer-facing.
- Must have at least one employee.
- Must commit to maintaining a digital adoption strategy for at least six months.
Boost Your Business Technology Stream:
- Must be incorporated federally or provincially or be a sole proprietor who is a Canadian resident.
- Must have between 1 and 499 full-time equivalent (FTE) employees.
- Must have a minimum of $500,000 in annual revenue in one of the past three tax years.
2. Canada Small Business Financing Program
The Canada Small Business Financing Program helps small businesses secure loans by sharing the risk with lenders, making it easier to obtain financing from financial institutions. This program is managed by Innovation, Science, and Economic Development Canada and is accessed through Canadian financial institutions.
Funding Details:
- Businesses can secure loans up to $1,000,000.
- A maximum of $350,000 can be used for leasehold improvements or purchasing new/used equipment.
- Loan approval is determined entirely by financial institutions.
- Interest rates are set by lenders and may be fixed or variable.
Eligibility Requirements:
- Businesses must have $10 million or less in gross annual revenues.
- Farming businesses are not eligible.
3. Canada Growth Fund
The Canada Growth Fund (CGF) provides financial support to businesses investing in technologies that reduce carbon emissions and contribute to economic growth. This fund helps businesses attract private capital for large-scale technology adoption.
Funding Details:
- Offers concessional financing instruments that balance risk and return.
- The program distinguishes itself from traditional grants and market-based commercial financing.
Eligibility Requirements:
- Businesses must have a Canadian presence.
- Must own the intellectual property related to the project.
- Must align with the principles of the CGF.
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 Resources.
If your business wants to start accessing funding for capital and tech adoption, please connect with the Ryan team to learn which active program could fit your business’s needs. You can also subscribe to our weekly funding newsletter to stay updated on 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 where our funding professionals will discuss high-level details regarding government funding opportunities for Canadian businesses.
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