If you're asking what replaced CDAP, the honest answer is that nothing did, at least not one for one. The Canada Digital Adoption Program is closed to new applicants. No federal program now offers the same mix of a small grant for a digital plan plus an interest-free loan to carry it out. This article covers what you can use instead of CDAP in 2026, and how to scope a software, CRM or automation project so it holds up in front of a lender, a grant officer or your own finance team.
This article is about Canadian business funding. US businesses should read it as context only and look at SBA, state and local programs instead.
What replaced CDAP? The short answer
CDAP is finished, and you can't apply. As of October 26, 2026, the federal government has not announced a direct CDAP replacement with the same grant-plus-interest-free-loan structure.
The closest national option is BDC LIFT (Lead with Innovation and Focus on Technology). BDC's CDAP page now directs visitors to it. LIFT works differently from CDAP. It pairs advisory support with loans, and it's aimed at established, creditworthy businesses. It is not a $15,000 grant. Some smaller firms that used CDAP may not qualify, especially if they have limited revenue history, thin credit or aren't ready to take on debt.
One general caution applies to everything below. Funding programs change intakes, caps and eligibility often, sometimes mid-year. Before you build a budget around any program, confirm the current terms with the organisation that runs it.
What CDAP used to cover
CDAP had two streams.
Boost Your Business Technology was for businesses that wanted to change how they operate. You could get a grant of up to $15,000 to hire an approved digital advisor, who wrote a digital adoption plan. You could then apply for a 0% BDC loan of up to $100,000 to implement that plan. Typical projects were CRM and ERP implementations, inventory systems, cybersecurity upgrades, e-commerce builds and general software adoption.
Grow Your Business Online was smaller and aimed at main-street businesses getting online for the first time. It offered micro-grants and advisor help for websites, online stores, booking tools and social presence.
Businesses commonly used CDAP to plan and finance the adoption of existing tools such as CRM, ERP, e-commerce and cybersecurity systems. That matters later in this article.
CDAP closure timeline
You'll see several different "closing dates" for CDAP online. Most of the confusion comes from mixing up three separate milestones: when each stream stopped taking applications, when the closure was announced, and when the program finished administering existing files.
February 2024: Boost Your Business Technology closed to new applications
According to BDC's CDAP page, the Boost stream stopped accepting new applications on February 19, 2024. That was the main stream, with the advisor grant and the 0% loan. For most businesses planning a software or CRM project, this is the date that counts.
2024: Grow Your Business Online wound down
The smaller Grow stream stopped taking new applications later in 2024. After that, neither CDAP stream was open to new businesses.
March 31, 2025: final program wind-down
ISED set March 31, 2025 as the program's formal end date. That was the deadline for wrapping up existing files, reimbursements and approved work. It does not mean new applications stayed open until then. They didn't.
CDAP vs BDC LIFT: the closest replacement, not the same thing
| CDAP | BDC LIFT | |
|---|---|---|
| Type of support | Grant for an advisor, plus a 0% loan | Advisory support plus loans |
| Grant or loan | Partly grant, partly interest-free loan | Loan, which must be repaid |
| Typical amount | Up to $15K grant; up to $100K loan | Set by BDC and varies by track; confirm current ranges with BDC |
| Eligibility | Small businesses with modest revenue thresholds | Established businesses with revenue history and solid credit |
| Revenue expectations | Low | Commonly described as roughly $1M+ annual revenue for the digital/AI track |
| What it funds | Digital plans, software adoption, e-commerce | Digital transformation, AI, data, operations technology |
| Best fit | Small firms taking a first serious step into digital | Mid-sized firms with a clear transformation case |
| Limitations | Closed | Debt, credit review, not designed for micro or early-stage firms |
Integrators and directory sites sometimes advertise specific LIFT rates and loan ranges. Only BDC can confirm loan amounts, rates and eligibility, so take those questions to BDC directly.
Who BDC LIFT may fit
LIFT makes sense if you have established revenue, a few years of financial statements, healthy margins and a project with a clear payback. For example:
- replacing manual quoting, scheduling or dispatch with an integrated system
- building a data platform so finance and operations stop arguing about which spreadsheet is correct
- connecting ERP, CRM and e-commerce so orders don't get typed in three times
- modernising an ageing line-of-business system before it fails
- adopting AI for document processing, forecasting or support triage
If you can say "this saves us X hours a week and cuts errors by Y," you're the kind of business LIFT was designed for.
Who BDC LIFT probably does not fit
LIFT is probably not the right route if:
- your annual revenue is under roughly $1 million
- you're a sole proprietor or early-stage company without much financial history
- you aren't profitable yet, or your credit is thin
- what you really need is non-repayable money, not debt
That describes many of CDAP's former users. Some directory pages still tell smaller businesses to "use CDAP for planning, then LIFT for implementation." That route no longer exists.
Under $1M in revenue: CDAP alternatives to look at instead
There probably isn't one program that does what CDAP did for you. In practice, smaller firms now combine several things: a smaller first build, a provincial program where one is open, a tax credit if the work genuinely qualifies, and possibly a modest loan. Phasing the work also keeps you from borrowing for features you don't need yet.
Here's a broader view of the options as of October 26, 2026. "Ongoing" means the program runs continuously. "Intake-based" means it opens in windows, so check whether an intake is currently open.
| Program | Type of support | Best fit | Likely project types | Status / cautions | Where to check |
|---|---|---|---|---|---|
| BDC LIFT | Loans + advisory | Established, profitable SMEs | Transformation, AI, integrations | Open; confirm amounts, rates and eligibility with BDC | BDC (bdc.ca) |
| NRC IRAP | Advisory + possible non-repayable contributions | Firms developing new or improved technology | New products, technical R&D, novel platforms | Ongoing, advisor-led; competitive, never guaranteed | National Research Council (nrc.canada.ca) |
| SR&ED | Federal tax credit (plus provincial credits) | Firms doing experimental development | Software work that resolves technological uncertainty | Ongoing; claimed through your tax return; rates and limits have changed in recent budgets | CRA (canada.ca) |
| CSBFP | Government-backed loan through your bank | Small firms buying assets | Equipment, some software and intangibles | Ongoing through lenders; lender interpretation of eligible costs varies | ISED (canada.ca) |
| OCI DMAP (Ontario) | Support toward digital modernisation and adoption | Ontario SMEs | Digital plans, adoption projects | Intake-based; check current intake | Ontario Centre of Innovation |
| Digital Main Street | Grants + training | Main-street retail and services | Websites, e-commerce, online presence | Check current intake; it has been closed at times | Digital Main Street |
| Regional development agencies | Loans, sometimes contributions | Varies by region | Productivity, scale-up, tech adoption | Varies; FedDev Ontario, PrairiesCan, ACOA and others each set their own rules | Your regional agency |
| CanExport | Grant | Exporting SMEs | Export-focused marketing and localisation | Intake-based; check current intake | Trade Commissioner Service |
| Provincial job/training grants | Training cost share | Firms training staff on new systems | Training on CRM, ERP, new workflows | Intake-based; employer cost share applies | Your provincial labour or employment ministry |
Provincial digital adoption and productivity programs
Ontario's OCI Digital Modernization and Adoption Plan (DMAP) is the program most often cited as filling part of the CDAP gap for Ontario businesses. Other provinces run their own versions through economic development ministries or innovation agencies. Regional development agencies sometimes fund productivity projects as well.
These programs open and close in intakes. Start with your province's economic development portal and your regional agency's site, and confirm an intake is open before you spend time on an application.
CSBFP loans for technology purchases
The Canada Small Business Financing Program (CSBFP) isn't a grant. It's a loan from your own bank, partly guaranteed by the federal government. The guarantee makes some lenders more willing to finance assets they would otherwise hesitate on. The program's overall maximum is $1.15 million, including up to $150,000 for intangible assets such as software.
Whether a particular software project counts as eligible often comes down to the lender's reading of the rules. Ask early and get the answer in writing.
Training and hiring grants
If staff need training on a new system, a training fund may cover part of the cost. The Canada-Ontario Job Grant is one example, and most provinces have an equivalent. This part often gets forgotten, and training is usually what decides whether a new CRM gets used or quietly abandoned.
Build vs buy after CDAP: why custom software may be easier to fund
This is where things have changed most for software projects.
CDAP was commonly used to buy and adopt existing software: a licence, setup and a consultant. Without it, a business that only wants to adopt an off-the-shelf tool has fewer non-repayable options. A business developing something genuinely new may have more, because IRAP and SR&ED are aimed at technical development, not purchases. VstreamX makes a similar point.
Be careful with that idea, though. Custom software is not automatically eligible for anything. Routine builds, standard API integrations and configuration are usually not enough. SR&ED eligibility depends on whether your team is resolving technological uncertainty through systematic investigation or experimentation, where the answer couldn't be found with standard practice. Talk to IRAP and to a qualified SR&ED specialist before development starts, not after.
When off-the-shelf software still makes sense
Buy if your workflow is standard, your budget is tight and you need it running next month. HubSpot, QuickBooks, Shopify and similar tools are often the right answer for a small business.
These are the signs a tool doesn't fit:
- staff keeping side spreadsheets
- data entered twice
- follow-ups that depend on someone remembering
- reports that take a day to assemble
When custom software is worth scoping
Custom work pays off when your edge lives in your process: how you quote, schedule, inspect, approve or serve clients. You usually don't need to rebuild everything. You build the missing 30% around your real workflow. That could be internal tools, customer portals, admin dashboards, APIs that connect your existing systems, a SaaS product, or a rebuild of an ageing legacy system.
That's the core of our custom software development work. For a sense of budgets, see our notes on costs and first builds for small business software and how to choose a custom software developer. If the project needs a phone app as well, see our mobile app development page, our guide to what an app costs a small business and our notes on cross-platform app development in Canada.
Funding options that may support custom software
- IRAP: advisory support and possible contributions for firms developing new or improved technology. You'll speak with an Industrial Technology Advisor before any formal application.
- SR&ED: tax credits on eligible experimental development, which can include some software work. You'll need contemporaneous records of the technological uncertainty, the hypotheses you tested, what you tried and what failed.
- Provincial innovation and productivity programs, where an intake is open.
- Financing (LIFT, CSBFP or your bank) for the implementation work that doesn't qualify as innovation, which is usually most of it.
A rule of thumb: if the project only configures an existing tool, it's unlikely to qualify for innovation support. If it involves product development, or technical problems your team can't solve with known methods, such as new algorithms, novel data models or automation logic with no established approach, it may be worth an assessment. Even then, expect only part of a project to qualify. We go deeper in funding for custom software development in Canada.
Already have a CDAP digital plan? Here's what to do with it
Keep it. You paid for a structured look at your operations, and that's still useful. It can serve as the starting scope for a LIFT conversation, a provincial application, an IRAP discussion, internal budgeting or a phased software roadmap.
It will be out of date, though. Update the vendor quotes and costs, the tools you now use, the business case and ROI, security and privacy requirements, data migration needs and implementation milestones.
Turning a CDAP plan into a fundable software scope
Most digital plans make broad recommendations like "implement a CRM" or "improve inventory visibility." A funder or developer needs more detail than that. Turn the plan into a project brief covering:
- the problem and what it costs you today
- users and their roles
- the workflows to support, step by step
- integrations with existing systems
- must-have features versus later phases
- the data model and where data comes from
- security and privacy requirements
- reporting needs
- timeline, budget and success metrics
- the main implementation risks
This is the kind of work our technology strategy and project scoping covers. If you have an old plan and aren't sure what still applies, book a free 30-minute scoping call.
Worked examples: what might replace CDAP for common projects
These examples are illustrative only and are not funding advice. The figures are planning numbers, not quotes. Actual cost depends on integrations, user roles, data migration, security requirements and design complexity.
Example 1: a $60K customer portal for a service business
The old CDAP path: a property maintenance firm might have used the CDAP grant for a digital plan, then a 0% loan to build a portal where clients book work, approve quotes and see job history.
The 2026 path:
- Phase the build. A first release covering booking, quote approval and job history might take roughly $25K–$30K of the budget. Invoicing and technician updates come later.
- Check whether a provincial productivity program has an open intake.
- Finance the rest through your bank, possibly under CSBFP if the lender accepts the costs, or through LIFT if you meet BDC's criteria.
- If part of the portal involves genuine technological uncertainty, such as scheduling logic your team can't solve with known approaches, have an SR&ED specialist assess that part before work begins. A standard booking flow or a routine integration with a field-service tool won't qualify on its own.
Our guide to customer portal development cost in Canada has more detail on budgets, and good UI/UX design is what gets clients to actually use the portal.
Example 2: CRM and workflow automation for an operations-heavy company
A distributor with $4M in revenue loses leads between sales, estimating and dispatch.
Build vs buy: a fully custom CRM is rarely the right first move. A better pattern is an off-the-shelf CRM plus custom integrations and automation. That means syncing quotes from the estimating tool, triggering follow-ups automatically, and using AI automation for manual workflows to classify inbound emails and pre-fill orders. Fully custom CRM development is worth considering only when your sales process doesn't match any standard tool.
Funding: at this revenue, LIFT is worth a conversation with BDC. The CRM licence is a straight operating cost. Most of the integration work will be routine engineering. Only a component that involves real technological uncertainty would be worth raising with an SR&ED specialist.
Example 3: legacy system modernisation for a manufacturer or distributor
A manufacturer runs on a 15-year-old Access database that only one person understands.
Licensing another tool on top often just adds another silo. The better move may be to migrate the data to a modern database, wrap it in APIs, and build dashboards for production and finance. You could then connect it to ERP systems for operations, inventory and finance or move it to properly architected cloud infrastructure.
For an established firm, this makes a strong financing case because the risk, cost and payback are concrete. Most migration and dashboard work is routine, so don't assume tax credits. Treat innovation support as a possible bonus only if a specialist identifies genuinely uncertain technical work.
How to choose your next step
- You need a grant: check provincial programs and regional agencies. If you're developing new technology, talk to IRAP.
- You're established and can carry debt: review BDC LIFT and compare it with your bank's terms.
- You're building new technology: speak to an IRAP advisor and an SR&ED specialist before development starts, so the right records are kept from day one.
- You only need a website or basic e-commerce: look for local programs, keep the scope lean and consider web apps and secure business websites built to grow later. Our web design team can keep it simple, and Ontario businesses should check what an AODA-compliant website needs before the build.
- Your operation is messy and you're not sure what you need: start with a fixed-scope discovery before you apply for anything.
Checklist before you apply for funding or financing
- Latest financial statements (two to three years if you have them)
- Current revenue and employee count
- A written project scope
- Vendor quote(s)
- Implementation plan with milestones
- ROI estimate in hours saved, errors avoided or revenue
- Canadian vendor status, if the program favours it
- Your CDAP digital plan, if you have one, updated
- Security and privacy requirements
- A named internal owner for the project
- A realistic timeline
- Evidence that the project improves productivity or revenue
Life after CDAP: how Eskore can help scope your software before you apply
Funders, lenders and SR&ED reviewers all respond better to a clear scope than to a vague ambition. Before any build starts, we write that scope with a price and a realistic launch date. During delivery, the goal is to show you working software regularly so there are no surprises at launch.
Our work covers internal tools, customer portals, dashboards, APIs and integrations, and legacy modernisation. You can see our software and web case studies.
There's no single answer to what replaced CDAP, but there is a sensible next step for your project. If you were planning a CDAP project, or have a digital plan sitting in a drawer, book a free 30-minute scoping call. We'll help you work out what to build first, what it should cost, and which funding conversations are worth having.
