Question Period Note: CANADA DIGITAL ADOPTION PROGRAM

How will the Canada Digital Adoption Program help small businesses?

• The COVID-19 pandemic has shown that Canadian small businesses need to adopt digital technologies to meet customers’ needs and to stay competitive.

• Budget 2021 proposes to launch the Canada Digital Adoption Program, a $1.4 billion investment over four years to help as many as 160,000 small businesses move into the digital era.

• The program will provide micro-grants to smaller, main street businesses to support the cost of technology adoption.

• It will create training and work opportunities for as many as 28,000 young people to help small businesses adopt new technology.

As part of Budget 2021, the Government announced the creation of the Canada Digital Adoption Program (CDAP) to help small and medium-sized enterprises (SMEs) adopt new digital technologies. This new program will help Canadian small businesses become more efficient, go digital, take advantage of e-commerce, and become more competitive in Canada and abroad.

Budget 2021 proposes a $1.4 billion investment over four years, starting in 2021-22, for Innovation, Science and Economic Development Canada to:
• work with organizations across Canada to provide access to skills, training, and advisory services for all businesses accessing this program;
• provide microgrants to smaller, main street businesses to support costs associated with technology adoption;
• create training and work opportunities for as many as 28,000 young people to help small and medium-sized businesses across Canada adopt new technology.

The CDAP will consist of two streams of support for businesses:
• The first stream will be designed to help main street businesses digitize and take advantage of e-commerce opportunities. Eligible businesses will receive microgrants to help with the costs related to adopting digital technologies as well as support and advice from a network of young digital advisors.
• The second stream will help businesses “off main street”, such as small manufacturing and food processing operations, who require more comprehensive support to adopt new technology. Support for these businesses will emphasize advisory expertise for technology planning and financing options needed to put these technologies to use

It is anticipated that the new CDAP could help as many as 160,000 small and medium-sized businesses adopt new digital technologies. In addition, up to 28,000 young Canadians could be hired and trained - a Canadian technology corps that will work with Canadian SMEs to facilitate their digital transformation.

Budget 2021 also proposes to provide $2.6 billion on a cash basis over four years, starting in 2021-22, to the Business Development Bank of Canada to help SMEs finance technology adoption – bringing the Government’s total investment to help move SMEs into the digital age to $4 billion.

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