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GUIDES · FUNDING 2026

Digital Transformation Funding in Canada in 2026

By Danny Malouin. Updated October 22, 2026. Reviewed every quarter.

The Canada Digital Adoption Program is gone and no national grant replaced it. In 2026 the federal money for digital projects is mostly loans, R&D support and tax credits. The real grants sit in the provinces, and only Québec and Ontario have one big enough to build a plan around.

THE SHORT VERSION

At a glance

BDC LIFT, federal
$5M

Largest loan for AI and digital adoption, from a $500M envelope. It is debt, not a grant.[2]

ESSOR 1B, Québec
$20,000

Grant for a digital diagnostic and plan, at 50% of eligible costs.[1]

DMAP, Ontario
$15,000

Grant for a digital modernization plan, at 50% of eligible costs.[3]

The pattern is the same almost everywhere. Funders pay for a plan first. Implementation money, when it exists, comes after the plan.

ACROSS CANADA

Federal programs

Federal support depends on one question. Are you buying technology or building it? Buyers mostly get loans and advice. Builders can get contributions and tax credits.

Loan plus advice

BDC LIFT

$25,000 to $5M for AI and digital projects, launched April 2026. Better terms for Canadian tools and suppliers.[2]

Apply

Contribution

NRC IRAP

For incorporated firms up to 500 employees developing technology. It starts with an advisor conversation.[1]

More info

Tax credit

SR&ED

Refundable credit for eligible R&D in Canada. It covers development work, not software licences.[1]

More info

Advisory grant

NGen AI Readiness

Up to $15,000 for an AI readiness plan. Manufacturers under 500 employees, with an IRAP referral.[1]

Apply

Regional funding

Regional AI Initiative

$200M split across the regional development agencies. Terms differ by region.[4]

Apply

If you are buying software, not building it, the federal options are loans. Plan your cash flow that way.
QUÉBEC

Québec

Québec has the most complete setup in Canada. ESSOR stream 1B pays half of a diagnostic and plan, up to $20,000. Stream 1C pays half of the implementation, up to $50,000. Montreal businesses can add the Circuit numérique of PME MTL, up to $9,000.[1]

The catch: the service offer must be in French from a Québec-based provider, and the business needs a French website.

Read the full Québec guide

ONTARIO

Ontario

Ontario is the only other province with a real planning grant. The Ontario Centre of Innovation’s DMAP pays 50% of a digital modernization plan, up to $15,000.[3]

The conditions that matter most.

  • A for-profit, incorporated business with 1 to 499 employees.
  • A permanent establishment in Ontario.
  • The plan must be built by a consultant on the program’s approved roster.
  • Applications are rolling, first come, first served while funds last.[1]

Apply

Grant

DMAP

Up to $15,000 for a digital plan. Rolling intake.[3]

Apply

Grant

Retail Modernization

Up to $5,000 for storefront retailers with 1 to 50 staff. Can’t be combined with DMAP.[1]

Apply

Closed

Digital Main Street grant

The grant is closed. Free workshops and onboarding continue.[1]

More info

THE REST OF CANADA

The other provinces and territories

Outside Québec and Ontario there is no general grant for a digital plan right now. What exists is sector specific, regional or advisory.

BC

British Columbia

Mostly tax credits. Northern BC businesses hit by tariffs can get up to $30,000 for business advice, covering up to 85% of costs, through Northern Development until December 31, 2026.[5]

Apply

AB

Alberta

A productivity grant of up to $30,000 for manufacturers, with limited intakes. Free one-on-one advice through Business Link.[1][6]

Apply

SK

Saskatchewan

Grants exist for creative industries through Creative Saskatchewan. Nothing general for digital adoption.[6]

Apply

MB

Manitoba

Free digital advisory through the Manitoba Digital Services Program. No general adoption grant.[6]

Prairies

PrairiesCan

Large pivot and AI funds for projects of $500,000 and up. Built for bigger companies.[6]

Apply

Atlantic

Atlantic Canada

PEI covers 50% of a first website, up to $1,000, or $2,500 with e-commerce. We found nothing general open in NS, NB or NL.[1]

More info

North

Territories

The NWT ADAPT Fund gives up to $5,000 a year. Yukon’s e-commerce micro-grant is fully subscribed.[1]

Apply

NO LONGER AVAILABLE

What is closed

Federal

Canada Digital Adoption Program

Closed to new applicants in 2024 and ended in 2025. No grant replaced it.[7]

Federal

Grow Your Business Online

Closed in September 2024.[1]

Ontario

Digital Main Street grant

The funding is closed. Only the free support remains.[1]

More info

Ontario

OCI TDP

Closed for applications.[1]

Where to start

Step 1

Buying or building?

Buying points to plans and loans. Building points to IRAP and SR&ED.

Step 2

Check your province first

Provincial planning grants pay more than anything federal for adoption.

Step 3

Start with the plan

ESSOR, DMAP, NGen and LIFT all start with a plan. It unlocks the next step.

Step 4

Nothing before you file

Most programs refuse costs incurred before approval.

Beep Digital is a Montreal firm. We help SMBs pick the right program and build the plan funders ask for. Final eligibility always rests with the funding body.

Book a free 15-minute call

SOURCES

Sources

This guide summarizes public programs, checked against the sources above in October 2026. Many programs close when funds run out. Always confirm with the funding body before applying.

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