What is CanExport SME: Subsidize your export activities

The CanExport Program, launched by Global Affairs Canada, presents itself as an essential lever to boost the exports of Canadian businesses. This mechanism offers financial assistance that allows SMEs to access new international markets and to realize projects with high potential for economic growth. By facilitating the exploration of emerging and established markets, the program supports both large-scale initiatives and innovative export strategies. It encourages companies to diversify their revenues, strengthen their competitiveness, and establish strategic partnerships abroad.

The CanExport Program, launched by Global Affairs Canada, presents itself as an essential strategic lever to boost the exports of Canadian businesses. Its fundamental objective is to support the export efforts of Canadian companies by offering them export financing in the form of a grant, which facilitates access to international markets and allows for supporting projects with high potential for economic growth. This mechanism, specifically intended for SMEs, offers financial assistance that encourages companies to explore new commercial territories while strengthening their competitiveness on the global stage. The program primarily aims to open the international market to Canadian businesses by helping them overcome the obstacles related to expansion abroad. By facilitating the transition to emerging and established markets, it plays a determining role in the development of international markets, thereby enabling companies to diversify their sources of revenue and stimulate their growth. Thanks to the CanExport application and the rigorous evaluation of the CanExport eligibility criteria, only projects that present a genuine potential for economic impact are granted the necessary support to develop internationally. Furthermore, the CanExport Program distinguishes itself by its ability to support not only large-scale export projects but also exploratory activities and innovative export strategies. It thus offers a support platform for Canadian exports that encourages companies to implement structured approaches to penetrate new markets and to develop strategic partnerships abroad. This support allows companies to acquire an in-depth understanding of the dynamics of international trade and to adapt their strategies according to the specific requirements of each market. Moreover, one of the program's major strengths lies in the possibility of subsidizing up to eight distinct activities, covering various aspects such as participation in international trade shows, market prospecting, organizing business missions, or even adapting promotional materials. This flexibility allows companies to benefit from tailor-made support, according to their specific needs and the particular challenges they encounter during their expansion abroad. In short, the CanExport SME Program constitutes a unique opportunity for Canadian companies wishing to develop their global presence by providing them not only with indispensable Canadian export financing but also with strategic support to succeed on the international stage.

An export project represents much more than a simple business initiative: it is a comprehensive strategy that enables a company to consider its international expansion in a structured and thoughtful manner. Indeed, this project primarily aims to stimulate the company's expansion by opening access to new target markets, thereby promoting the diversification of its revenue sources and reinforcing its competitive advantage. In an increasingly globalized economic context, reaching new markets offers a strategic opportunity to increase visibility, boost sales, and consolidate its position in the face of international competition. To ensure the success of an export project, it is essential to establish a clear strategy and to define precise tactics for integration into the targeted markets. This implies a meticulous planning of expenses and actions to be undertaken in order to optimize resources and guarantee an effective execution. Furthermore, risk anticipation constitutes a crucial step in the preparation of this project. Companies must prepare to face various obstacles such as customs formalities, the peculiarities of taxation, challenges related to transportation and compliance requirements, not to mention political and social issues that may affect the economic environment of the targeted markets. A rigorous analysis of these risks allows for the development of adapted preventive measures, thereby reducing uncertainties and securing expansion abroad. Ultimately, a well-designed export project presents itself as a strategic roadmap that combines a growth vision, anticipation of challenges, and financial planning, thus transforming international expansion into a sustainable success for the company. Consequently, the success of an export project relies on meticulous preparation and a long-term vision, where every strategic decision—from the selection of markets to the allocation of resources—contributes to building a solid and enduring international presence.

For the expenses of an export project to be eligible under the CanExport grant, it is imperative that the project's activity and the related expenses be incurred between the start date and the completion date specified in your financing agreement. Expenses incurred or paid before the start of the project or after its completion will not be eligible. Furthermore, the activity must belong to an approved category, as indicated in your agreement, and be directly linked to one or more validated target markets. Eligible expenses are divided into several categories. For example, Category A – Travel for events or meetings allows financing for participation in trade events, market visits, and meetings. For this category, the criteria specify a maximum duration of 30 days for two travelers, who must be employees or owners of the company. Expenses include transportation (air or ground), a daily allowance of $400 per day, visa fees, baggage, and travel authorization. It is recommended to check travel advisories and sanctions before submitting an application.

Below is a concise overview of the other eligible categories:

Finally, consultants must be independent, justify their expertise, and not charge travel expenses or daily allowances. This structure ensures that only expenses directly related to the project and the target markets will be funded.

The CanExport SME program offers an exceptional opportunity for all Canadian companies, regardless of their industry sector. Indeed, it is open to all sectors of the industry, thus allowing a wide range of companies to benefit from financial support for their international expansion. However, to submit a CanExport application, it is essential that the company meets certain clearly defined eligibility criteria. Firstly, the company must be for-profit, which ensures that only commercial entities engaged in economic growth can benefit. It must also be legally constituted as a legal entity—whether in the form of a corporation, a limited liability company, or a cooperative—and registered in Canada with an active business identification number. Furthermore, the company must not exceed 500 full-time equivalent (FTE) employees, thereby ensuring that the grant is indeed targeted at small and medium-sized enterprises. Finally, to be eligible, the company must have declared annual revenues between $100,000 and $100 million, either during its last fiscal year or over the past 12 months for monthly or quarterly statements. These rigorous criteria ensure that the CanExport SME program effectively supports companies capable of developing on the international stage.

The financing offered by the CanExport SME Program is a grant that aims to facilitate the international expansion of Canadian small and medium-sized enterprises. Although this program offers valuable financial assistance, it is competitive and limited in terms of resources. Thus, applications are processed on a “first come, first served” basis, which means that companies must submit their financing applications quickly, before the funds available for the fiscal year are exhausted. Once the funds are allocated, no new application will be accepted. The CanExport Grant offers financing for export projects in the form of a cost-sharing arrangement between the beneficiary and CanExport SME. The applicant can submit a CanExport application with a minimum budget of $20,000 and up to $100,000, depending on the nature and scope of the project. However, the program provides financial assistance of up to 50% of the eligible costs, which means that a company can receive between $10,000 and $50,000 in funding for each project. In return, the applicant is responsible for half of the total project costs. This model ensures support for Canadian exports while encouraging active participation of companies in the financing process.

To submit a CanExport SME application, follow a structured process in several steps.

Firstly, select up to five international markets where your company wishes to sell or acquire new customers, justifying your choices. Secondly, verify that each market meets the definition of an eligible new target market by indicating the total revenues and revenue per market or, for a sub-national market, the generated revenue. Thirdly, set realistic objectives for each market and present a detailed action plan including a profitability analysis. Fourthly, choose from the seven proposed categories of activities and ensure that every planned expense is eligible. Fifthly, submit a precise budget (between $20,000 and $100,000) indicating the number of travelers and the duration of the trips.

Finally, propose a realistic timeline with at least 60 business days before the first activity, and set an end date that aligns with the project's duration to ensure success.

In conclusion, the CanExport SME program offers Canadian companies a strategic opportunity to develop internationally. This mechanism provides financial assistance and structured support, allowing SMEs to realize ambitious export projects. Thanks to rigorous eligibility criteria, clear financing modalities, and a well-defined application process, companies can diversify their revenues and strengthen their competitiveness on the global stage.

Application process: Structured steps including market selection, objective definition, detailed action plan, and realistic timeline.