Funding to take your business digital

Yes, there is help for Canadian small businesses that want to sell online, adopt new software or improve their cybersecurity. It usually comes in three forms: grants and advice programs for digital projects, wage subsidies to hire students who do digital work, and loans such as BDC's online small business loan. Digital programs open and close often, so check each program page for what it covers right now.

What counts as "going digital"?

Funders use the word in different ways. A digital project might be:

Setting up an online store or online booking
Moving from paper or spreadsheets to accounting, inventory or customer software
Improving your website so customers can find and buy from you
Strengthening cybersecurity: backups, secure logins, staff training
Using data to understand sales, costs or customers

When you read a program page, check how it defines a digital project. Some programs pay only for planning and advice; others help with buying and setting up technology. The difference matters.

What kinds of funding can help?

Grants and advice programs

Governments and regional agencies sometimes run programs to help small businesses adopt technology. Some pay for an advisor to assess your business and write a digital plan. Others share the cost of putting the plan in place. These programs are usually cost-shared, so you pay part of the costs yourself.

Programs like these tend to come in time-limited rounds and can close once they're full. Browse digital programs to see what's listed now, and watch closing soon.

Broader business programs can also cover digital work. A regional growth program, for example, may fund new equipment and software as part of a larger project. Our guide to small business funding in Canada shows where to look.

Wage subsidies for digital work

Hiring a student can be a practical way to get digital work done, such as building a website, setting up an online store, cleaning up data or running social media. The Student Work Placement Program offers wage subsidies to employers who hire post-secondary students for work placements. Employers apply through delivery partners, organizations that run the program for a sector.

Read our post on hiring a student with wage subsidies and our guide to wage subsidies and hiring programs for the details and other options.

Loans

When grants don't fit, or don't cover the full cost, a loan can. BDC, a federal Crown corporation, offers an online small business loan that businesses can use for things like technology and software. It has its own rules about revenue and time in business, so check the program page.

A loan has to be repaid, unlike a grant. Our post on grants, loans and tax credits explains the trade-offs.

What do funders want to see in a digital project?

A digital application is stronger when it's concrete. Before you apply, be ready to explain:

The problem. What's slow, costly or risky now? "We take orders by phone and lose some" is better than "we want to modernize".
The solution. Which software, service or platform, and why that one.
The cost. Quotes from vendors, setup fees, training and subscription costs for the period the program covers. Our guide to building a grant project budget helps.
The people. Who will set it up and who will use it. Training staff is often part of a good plan.
The result. More online sales, less time on admin, fewer security incidents. Pick something you can measure.

Our post on how to write a grant application has more tips.

Can I get money back for software I already bought?

Usually not. Most programs only pay for eligible costs you take on after you're approved. Buying first and applying later is one of the most common ways to lose funding. Read apply before you spend before you sign up for that new system.

How do I avoid digital funding scams?

Digital help attracts its share of sales pitches dressed up as grants. Be careful with:

Vendors who say their product is "government-approved" or that a grant will cover it in full
Anyone who charges a fee to apply for you, or guarantees approval
Emails asking you to "claim" a grant you didn't apply for

Real programs are free to apply to and never guarantee you'll get funding. Our post on how to spot a grant scam and our notes on scams explain what to watch for.

Where do I start?

Write down the problem you want technology to solve.
Use the funding check to see programs that fit your business and province.
Read each program page: who qualifies, what's covered, and whether you must apply before buying.
Get quotes from vendors.
Apply, wait for approval, then buy and set up.

You can also browse programs for small businesses, and read about small business grant myths before you start.

Frequently asked questions

Is there a grant that pays for a new website?

Sometimes, as part of a digital adoption or business growth program. These come and go, so check digital programs for what's listed now and read each program page for what it covers.

Can I hire a student to build my online store?

Possibly. Wage subsidy programs like the Student Work Placement Program help employers hire post-secondary students, and digital work can fit. Check the program page and the delivery partner's rules.

Does a BDC loan count as a grant?

No. A loan has to be repaid with interest. It can still be useful for technology costs a grant doesn't cover. Check the program page for the rules.

Can I combine a digital grant with a wage subsidy?

Sometimes, as long as each program pays for different costs and their stacking rules allow it. Read our post on combining grants and check each program page.

This article explains how funding generally works. Each program sets its own rules, amounts and dates: check the program page and the funder’s site before you apply. A CanGrant editor hasn’t reviewed this article yet.