How Digital Main Street grants help small businesses use digital tools

By GrantHub Research Team · · Lire en français

How Digital Main Street grants help small businesses use digital tools

Many small businesses know they need better digital tools, but cost and know‑how get in the way. The Digital Main Street grants were built to solve that problem for Ontario’s brick‑and‑mortar businesses. Through training and targeted funding, the program helps you pay for practical digital upgrades like new websites, booking systems, and customer management software.


How the Digital Main Street Digital Transformation Grant works

The main funding stream for digital upgrades is the Digital Main Street – Digital Transformation Grant Program. It is an Ontario program designed for established, physical storefront businesses that want to modernize how they operate and sell.

What the grant supports

The Digital Transformation Grant is designed to help you use digital tools—not just plan for them. Eligible expenses typically include:

  • Hiring a digital expert
  • Website improvements or new e‑commerce functionality
  • Online booking and payment systems
  • Customer relationship management (CRM) software
  • Digital marketing tools and analytics
  • Staff training related to new digital systems

These costs must be tied to an approved digital upgrade plan.

How much funding is available

The program provides up to $2,500 in grant funding to help cover eligible digital upgrade costs, issued as a reimbursement after your project is completed and approved.

Funding amounts and intake periods can change between program versions, so always confirm current details before applying.

Who is eligible

To qualify for the Digital Main Street Digital Transformation Grant, your business must meet all of the following conditions:

  • Be a brick‑and‑mortar business in Ontario
  • Have a permanent street‑side location open to the public
  • Employ 1 to 50 employees
  • Pay commercial property tax
  • Be registered in Ontario or incorporated
  • Be actively operating at the time of application (not a startup)
  • Not be a wholesaler, manufacturer, or online‑only business
  • Not have received the Digital Transformation Grant before

Home‑based businesses, digital service providers, and franchises are generally not eligible.

Required steps before applying

The grant is not a standalone application. You must first complete the Digital Transformation for Main Street program, which includes:

  • A digital needs assessment
  • Online training modules
  • Development of a digital upgrade plan

Only after completing these steps can you apply for the grant itself.

Tools like GrantHub’s eligibility matcher can help you quickly confirm whether your business meets these criteria and filter similar programs by province and industry.


Why Digital Main Street grants are practical for small businesses

What makes Digital Main Street grants different is their hands‑on focus. Instead of broad innovation funding, this program targets everyday digital tools that directly affect sales, customer experience, and efficiency.

For many small retailers, restaurants, and service businesses, the grant helps:

  • Reduce manual admin work
  • Reach customers online more consistently
  • Improve booking, payments, and follow‑ups
  • Train staff on new systems without absorbing full costs

Because the funding is paired with training, many businesses find it easier to choose the right tools and avoid expensive mistakes.


How to Apply

Applying for the Digital Main Street grant involves several steps:

  1. Complete the Digital Transformation for Main Street program
    This includes a digital needs assessment, online training, and creating a digital upgrade plan.

  2. Prepare your application
    Gather documents showing your business meets eligibility criteria. Make sure your upgrade plan details the tools and improvements you want to pay for.

  3. Submit your application
    Apply online through the Digital Main Street portal. Attach your upgrade plan and proof of training completion.

  4. Wait for approval
    If approved, make your digital upgrades, pay for the tools or services, and keep all receipts.

  5. Request reimbursement
    Submit proof of payment and completion for eligible expenses. The grant is paid after your upgrades are finished and reviewed.

Always check for updates to eligibility and deadlines before starting your application. GrantHub tracks many active grant programs across Canada, so you can compare options and see what fits your business best.


Other Digital Adoption Grants in Canada

While Digital Main Street is specific to Ontario, other provinces offer similar digital upgrade grants. Some examples include:

  • Canada Digital Adoption Program (CDAP): Offers grants and loans to help businesses across Canada improve their technology and online presence.
  • Alberta Digital Economy Program: Supports small businesses in Alberta with digital training and funding for website and e-commerce upgrades.
  • BC Small Business Digital Transformation Grant: Assists BC businesses with costs for digital tools and online sales platforms.

These programs vary in funding amounts, eligibility, and required steps. Using GrantHub can help you find digital grants in your province and compare requirements.


Common mistakes to avoid

  1. Applying before completing the required training
    Your application will be rejected if you skip the Digital Transformation for Main Street program.

  2. Including ineligible expenses
    Hardware purchases or unrelated marketing costs may not qualify. Stick closely to your approved digital upgrade plan.

  3. Assuming online‑only businesses qualify
    The program is strictly for brick‑and‑mortar businesses with walk‑in customers.

  4. Missing reimbursement rules
    You must pay upfront and submit proof of payment. The grant is not paid in advance.


Frequently Asked Questions

Q: What is the Digital Main Street Digital Transformation Grant?
It is an Ontario grant that provides up to $2,500 to help eligible brick‑and‑mortar small businesses use digital tools like websites, software, and online systems.

Q: Do I need to finish the Digital Main Street training first?
Yes. Completing the Digital Transformation for Main Street assessment and training is mandatory before applying for funding.

Q: What expenses are covered by Digital Main Street grants?
Eligible costs include consulting fees, website upgrades, software, digital tools, and related training tied to your approved upgrade plan.

Q: Are franchises or home‑based businesses eligible?
No. Franchises, home‑based businesses, and online‑only businesses are not eligible under the program rules.

Q: Is the Digital Main Street grant taxable income?
In most cases, government grants are considered taxable income. Speak with your accountant to understand how it affects your business specifically.


GrantHub tracks many active grant programs across Canada—check which digital upgrade and small business grants match your business profile.


Next steps

If you’re planning digital upgrades, the Digital Main Street grant can cover part of the cost while giving you a clear implementation plan. Before applying, it helps to see how this funding fits with other programs you may qualify for. GrantHub makes it easier to compare digital upgrade grants, confirm eligibility, and stay on top of new intakes across Canada.

See also:

  • What Business Expenses Are Eligible Across Canadian Grants and Loans?
  • How to stack grants and loans without violating funding rules

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