Who Can Apply for CanExport SMEs: Eligibility Guide

The CanExport SMEs program provides crucial funding to help Canadian small and medium-sized enterprises (SMEs) expand into new international markets. Understanding whether your organization qualifies for this funding is essential before proceeding with your application. This guide outlines who can apply for CanExport SMEs, helping you determine your eligibility and prepare to leverage this opportunity.

Program Overview

CanExport SMEs supports Canadian businesses by providing up to $50,000 to cover 50% of eligible expenses related to export activities. Administered by the Trade Commissioner Service, this program is designed to help SMEs enter markets where they have little or no sales, fostering international growth and competitiveness.

Applicant Type Requirements

To be eligible for the CanExport SMEs program, your organization must:

• Be established in Canada and operate as a for-profit entity.

• Be an incorporated legal entity, a limited liability partnership (LLP), or a cooperative.

• Possess an active Canada Revenue Agency (CRA) business number.

Size & Scale Criteria

Eligible businesses must meet the following size criteria:

• Have between 1 and 500 full-time equivalent (FTE) employees.

• Report annual revenue between $100,000 and $100 million in Canada during the most recent fiscal year or the past 12 months for quarterly filers.

Geographic Eligibility

The CanExport SMEs program is open to businesses across Canada. However, applicants must focus on expanding into markets where they have little to no existing sales, targeting either the United States or other international markets, but not both.

Project & Activity Requirements

Eligible projects typically involve:

• Travel to foreign markets for trade shows or meetings.

• Participation in trade missions or networking events.

• Gathering market intelligence and conducting market research.

• Applying for intellectual property protection in international markets.

Financial & Operational Criteria

Applicants should maintain good financial health and compliance with tax regulations. It's important to demonstrate the capability to manage the project and sustain operations during the funding period.

Ineligible Applicants

Entities that do not meet the above criteria or those with existing significant sales in the target market are ineligible. Additionally, non-profit organizations, public sector entities, and businesses primarily focused on domestic markets do not qualify.

Special Cases & Exceptions

Certain unique situations, such as joint ventures or partnerships involving Indigenous enterprises, may have specific considerations. It's advisable to consult directly with the program to understand potential exceptions.

Self-Assessment Checklist

• Is your business established in Canada and for-profit?

• Do you have between 1 and 500 FTE employees?

• Is your annual revenue between $100,000 and $100 million?

• Are you targeting a market with little or no existing sales?

Conclusion

Determining your eligibility for the CanExport SMEs program is the first step in accessing valuable export funding. If your business meets these criteria, you are well-positioned to apply. Review all requirements carefully and prepare your application to expand your market reach internationally.