12 digital transformation and technology adoption grants for Ontario businesses. CDAP ended in spring 2025 — here are the best active replacements: NRC IRAP, OCI, FedDev BSP, Digital Skills for Youth, CanExport SMEs, and more.
Organization: National Research Council Canada
Level: federal
Amount: Up to $10 million
Canada's most powerful non-repayable R&D program, and the strongest CDAP replacement for Ontario businesses doing genuine digital innovation. Funds technical uncertainty — building custom AI tools, developing IoT systems, creating proprietary data pipelines. Industrial Technology Advisors (ITAs) are stationed in Toronto, Waterloo, Ottawa, Hamilton, and London.
Organization: Ontario Centre of Innovation
Level: provincial
Amount: Varies (matched funding model)
OCI (formerly Ontario Centres of Excellence) offers matched funding for digital innovation through industry-research partnerships. Advanced Manufacturing, Smart Connected Vehicles, and digital health streams are particularly relevant for Ontario manufacturers and tech companies pursuing Industry 4.0 and connected infrastructure projects.
Organization: Federal Economic Development Agency for Southern Ontario
Level: federal
Amount: $500,000 – $10 million (repayable)
Repayable contributions for Ontario businesses scaling digital operations, entering new markets, or enhancing productivity through technology. More accessible than pure R&D programs — suitable for established Ontario businesses with a track record of revenue looking to grow digital capabilities significantly.
Organization: Innovation, Science and Economic Development Canada
Level: federal
Amount: Up to $15,000 per intern (wage subsidy)
Still active post-CDAP. Provides Ontario employers with wage subsidies for 6-month digital internships for post-secondary graduates under 30. The most accessible path to building in-house digital capacity at reduced cost. Delivered through intermediaries including ICTC and Coding for Employment.
Organization: Global Affairs Canada
Level: federal
Amount: Up to $75,000 (50% cost-share)
Best active e-commerce-adjacent funding for Ontario businesses. Covers costs of entering new international digital markets — including foreign marketplace fees, international digital marketing, and website localization. Particularly relevant to Ontario firms using digital channels to reach US, EU, or Asian markets.
Organization: Digital Main Street Ontario
Level: provincial
Amount: $2,500 (program wound down in most municipalities)
The $2,500 direct grant for main-street digital adoption has wound down in most Ontario municipalities. However, Digital Main Street's network of Digital Service Squad advisors remains active through the Ontario BIA Association — providing free digital advisory to BIA-member businesses. Check digitalmainstreet.ca for local program status.
Organization: Innovation, Science and Economic Development Canada
Level: federal
Amount: Up to $1 million
Connects Ontario innovators with federal departments that have a digital or technology challenge to solve. Companies test and demonstrate their solutions in a real government environment, receiving up to $1M for a 2-year contract. Strong pathway for Ontario tech companies building government-adjacent digital solutions.
Organization: Innovation, Science and Economic Development Canada
Level: federal
Amount: Typically $10 million and above
Federal fund for large-scale industrial R&D and technology demonstration projects, including significant digital transformation investments. Relevant to Ontario's larger manufacturers and anchor tech companies pursuing major digitization projects — not designed for SMEs. Repayable or non-repayable depending on stream.
Organization: Canada Media Fund
Level: federal
Amount: Varies
Supports creation of Canadian digital content on television and interactive platforms. Ontario's media, gaming, and interactive entertainment sector is the primary beneficiary. Includes funding for digital media production, app development with Canadian content, and interactive storytelling projects.
Organization: Mitacs
Level: federal
Amount: Up to $15,000 per internship (matched)
Connects Ontario companies with graduate students for digital R&D projects on a cost-sharing basis. Excellent for building custom AI, ML, or data analytics systems without a full-time senior hire. Strong network across Ontario universities including Waterloo, University of Toronto, McMaster, and Queen's.
Organization: Digital Technology Supercluster
Level: federal
Amount: Up to $5 million
BC-headquartered but open to Ontario firms joining cross-sectoral consortia. Funds large-scale AI, IoT, and data-driven solutions addressing challenges in health, manufacturing, and natural resources. Ontario tech companies with a clear consortium partner and sector application are eligible.
Organization: Nishnawbe Aski Development Fund
Level: private
Amount: Up to $99,999 (individuals)
Provides non-repayable contributions to Indigenous entrepreneurs in Northern Ontario — including for technology adoption, digital marketing, and e-commerce projects. Relevant to First Nations and Metis business owners in the Northern Ontario region pursuing digital business development.
The end of CDAP in spring 2025 closed the easiest door to digital transformation funding. The programs that remain require more effort — but most are larger and more impactful than CDAP's $15,000 ceiling. Here's how to navigate the post-CDAP landscape.
If you're doing digital R&D with technical uncertainty: NRC IRAP is your primary option. The key test: are you developing or adapting technology (IRAP-eligible), or simply deploying existing software (not eligible)? If your project involves custom AI, ML, IoT, proprietary data infrastructure, or complex systems integration, call your nearest NRC IRAP Industrial Technology Advisor first. The ITA consultation is free.
If you're a manufacturer digitizing your operations: Two Ontario-specific paths exist. The Ontario Centre of Innovation (OCI) funds Industry 4.0 and advanced manufacturing digitization through industry-research partnerships. FedDev Ontario's Business Scale-Up program funds larger capital-intensive manufacturing digitization. Both require an application rather than a simple form — plan for 8–12 weeks from first contact to funding decision.
If you're hiring digital talent to build capacity: Digital Skills for Youth provides wage subsidies of up to $15,000 for 6-month digital internships. This is the most accessible post-CDAP option for non-tech businesses. Contact an intermediary organization rather than ISED directly.
If you're going digital to reach new export markets: CanExport SMEs (up to $75,000, 50% cost-share) is the best active program for Ontario businesses using digital channels to enter international markets — covering marketplace fees, localization, and international digital marketing.
| Program | Amount | Best For | Repayable? |
|---|---|---|---|
| NRC IRAP | Up to $10M | Digital R&D, custom tech | No |
| FedDev BSP | $500K–$10M | Scaling digital ops | Yes |
| OCI Programs | Varies (matched) | Industry-research digitization | Partial |
| DS4Y | Up to $15K/intern | Digital talent hire | No |
| CanExport SMEs | Up to $75K | Digital export markets | No |
A year after CDAP ended, the digital funding landscape for Ontario has consolidated around a smaller set of larger programs. These are the 2026 changes Ontario SMEs and digital teams should know.
SR&ED expenditure limit raised from $3M to $6M (Budget 2025). Federal Budget 2025 legislated the single largest SR&ED expansion in over a decade — doubling the enhanced refund ceiling for CCPCs from $3M to $6M, with a phased-in taxable capital threshold change that qualifies more Ontario scale-ups as "small" CCPCs. For Ontario digital R&D companies, this means a meaningfully larger refundable tax credit on the first $6M of eligible expenditures starting in fiscal years beginning after 2024. Paired with Ontario's 8% OITC, the effective refund on qualifying R&D can exceed 65% for many Ontario SMEs. Source: Department of Finance Canada, Budget 2025 SR&ED measures (April 2025).
Canada AI Compute Access Fund launched. ISED began deploying the $2B AI Compute Access Fund (announced Budget 2024) throughout 2025-2026. Ontario AI companies in the Toronto-Waterloo corridor have been the largest early beneficiaries, receiving subsidized access to high-performance compute for training and inference workloads. Applications are continuous through ISED's Pan-Canadian AI Strategy channel. The program is particularly relevant to Ontario digital firms building generative AI products. Source: Innovation, Science and Economic Development Canada, AI Compute Access Fund.
OIDMTC increased for interactive digital media content. The Ontario Interactive Digital Media Tax Credit remains at 40% refundable for qualifying interactive digital media (games, educational content, digital children's content), with the 2025 Ontario budget clarifying eligibility for cross-platform content including web, mobile, and XR. Ontario studios and digital media teams creating qualifying interactive content can stack OIDMTC with SR&ED for eligible R&D work on those same products. Source: Ontario Ministry of Finance, OIDMTC program updates 2025.
Innovative Solutions Canada expanded to 50+ federal departments. ISC's Testing Stream — one of the active post-CDAP programs listed above — now includes more than 50 federal departments and agencies publishing digital challenges. Ontario tech companies with AI, cybersecurity, or data platforms should check the ISC marketplace quarterly for new challenge postings, each offering up to $1M for 2-year test contracts with federal buyers. Source: Innovation, Science and Economic Development Canada, Innovative Solutions Canada program expansion.
Strategic Response Fund replacing SIF for 2025+ commitments. The Strategic Innovation Fund is being wound down for new commitments; future large-scale industrial digitization funding will flow through the Strategic Response Fund (SRF), which was allocated $16B in Budget 2025 over five years. Ontario's advanced manufacturing, automotive, and tech anchor companies with $10M+ digital transformation projects should plan for SRF rather than SIF for new applications. Source: Government of Canada, Budget 2025 Strategic Response Fund announcement (April 2025).
NRC IRAP contribution envelope continues to grow. IRAP's federal envelope was increased in Budget 2025 to keep pace with demand after CDAP closure pushed more digital SMEs into IRAP as their primary R&D funder. The Toronto-Waterloo corridor continues to receive the largest share of IRAP disbursements provincially. The free ITA consultation process remains the recommended first step for any Ontario company with a digital R&D project. Source: National Research Council Canada, IRAP annual program updates.
CDAP legacy: no direct replacement planned. Unlike the wind-down of other programs, CDAP has not had a direct federal successor announced. As of April 2026, Ottawa's position is that SR&ED expansion, AI Compute Access, and the existing IRAP/OCI/BSP trio collectively cover the digital transformation space. Ontario main-street businesses seeking the type of simple $15K adoption grant CDAP provided should check municipal BIA budgets and the Ontario Rural Economic Development (RED) program — these are the closest remaining small-grant options. Source: Innovation, Science and Economic Development Canada, CDAP program wind-down summary (Spring 2025).
CDAP wound down in spring 2025 after supporting over 90,000 Canadian businesses. No single program has replaced its breadth. For Ontario businesses, the best alternatives are NRC IRAP for digital R&D projects with technical uncertainty, the Ontario Centre of Innovation (OCI) for industry-research digital partnerships, and FedDev Ontario's Business Scale-Up and Productivity (BSP) program for scaling digital operations. IRAP is non-repayable and suitable for SMEs building custom digital tools; BSP is repayable but accessible to a broader range of digital scale-up projects.
Yes — IRAP is one of the strongest federal programs for Ontario tech R&D, including digital projects. The key eligibility requirement is technical uncertainty: you must be developing or adapting technology, not simply purchasing and deploying existing software. Qualifying digital projects include building custom AI or machine learning systems, developing IoT-connected infrastructure, creating proprietary data pipelines, and integrating legacy systems with new digital tools where significant technical risk exists. IRAP Industrial Technology Advisors (ITAs) are stationed across Ontario and provide free scoping consultations before you formally apply.
The primary Ontario-specific channel is the Ontario Centre of Innovation (OCI), which offers matched funding for digital innovation through industry-research partnerships. For Northern Ontario businesses, NOHFC's Business Fund covers digital infrastructure investments. FedDev Ontario (federal but Ontario-focused) runs the BSP program exclusively for southern Ontario firms. While the Digital Main Street direct grant has wound down, the Ontario BIA Association's Digital Service Squad provides free digital advisory to main-street businesses through locally embedded advisors.
Yes, though the pathway has narrowed since CDAP ended. The most accessible options for non-tech businesses are: Digital Skills for Youth — still active, providing wage subsidies up to $15,000 to hire a young digital worker; BDC Digital Advisory Services — subsidized consulting to build a digital transformation roadmap; and Canada Business Ontario — free advisory service that maps your situation to available funding. Manufacturers also have access to OCI's advanced manufacturing streams. Rural traditional businesses should investigate the Rural Economic Development (RED) program through Ontario OMAFRA.
Dedicated e-commerce grants are scarce post-CDAP. The best active option is CanExport SMEs (up to $75,000, 50% cost-share), which funds costs of entering new international digital markets — including foreign marketplace fees, digital marketing in foreign markets, and website localization. The Digital Skills for Youth wage subsidy effectively reduces the cost of hiring digital talent to implement your online store. Some Ontario municipalities run local digital adoption incentives through BIA budgets — check with your local Economic Development Office.
Standalone cybersecurity grants for SMEs remain limited. The most relevant paths are: NRC IRAP if you are developing a novel cybersecurity solution or adapting security technology to a new context (genuine R&D involved); IDEaS (Innovation for Defence Excellence and Security) for Ontario businesses working with the Canadian defence supply chain on security-related digital projects; and SDTC for cleantech companies where cybersecurity is integral to connected infrastructure protection. The Canadian Centre for Cyber Security (CCCS) provides free assessment tools that reduce out-of-pocket costs for foundational security work.
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