CanExport SMEs
At a glance
- From 10,000$ to 50,000$
- 50% of project cost
- Open Date : February 29, 2024
- Closing date : May 31, 2024
- All industries
- Trade Commissioner Service
- Global Affairs Canada
- Government of Canada
Overview
Eligibility criteria
- Must be a for-profit enterprise.
- Must be a legal entity incorporated as a corporation, a limited liability company, or a cooperative in Canada.
- Must have an active Business Number (BN) from the Canada Revenue Agency (CRA).
- Must have fewer than 500 full-time equivalent employees (FTEs).
- Must have reported annual revenues between $100,000 and $100 million in Canada in its last financial year (or in the last 12 months for monthly or quarterly filings).
Who is eligible
All sectors of industry are eligible.
Who is not eligible
- Other forms of business structures such as sole proprietorships and limited partnerships (LP).
- Third-party representatives such as agents, promoters, sales or commercial representatives, and consultants.
- Brokerage houses and export brokers (except in the agriculture and agri-food sector).
- Distributors and wholesalers acting as intermediaries.
Eligible expenses
- Costs directly related to eligible activities.
- Can be used for expenses such as travel, market research, legal fees, etc.
- Category A: Travel to events and meetings
- Travel expenses to attend international events, meetings with potential partners, etc.
- Category B: Trade events
- Registration and participation in trade shows, exhibitions, etc.
- Category C: Marketing and translation
- Market-specific marketing campaigns, translation of promotional or technical material.
- Category D: Interpreting services
- Costs related to hiring interpreters for meetings or events.
- Category E: Contractual agreements, product registration and certification
- Costs related to product registration, certifications required to enter new markets.
- Category F: Consulting - Business, tax and legal advice
- Fees for expert business, tax and legal advice related to international expansion.
- Category G: Consulting - Market research, feasibility studies, key contact research and business-to-business trade
- Costs to carry out market studies, feasibility assessments and identify key contacts.
- Category H: IP protection, including expert/legal services for IP-related expenses for target market(s)
- Expenses for IP protection, including fees for IP lawyers for target market(s).
Eligible projects & activities
- Emphasizes exporting existing products and services to new foreign markets.
- Activities related to attracting investments or those linked to a company's current operations in Canada, as well as activities related to the development, production, and distribution of new products and services, are not eligible.
- Supports exploratory activities and those contributing to a long-term export strategy.
- Companies can select up to five international markets to accelerate their growth and pursue a regional expansion strategy.
- Offers a choice of 8 activity categories allowing a high degree of project customization.
Eligible geographic areas
- Open to all international markets.
- Divided in 5 targeted countries
Evaluation & selection criteria
- Type of business: Must be a for-profit business.
- Legal status: Must be an incorporated body corporate, limited liability company or cooperative.
- Business number: Must have an active Canada Revenue Agency business number.
- Company size: Must employ fewer than 500 full-time equivalent employees.
- Annual revenues: Must have declared revenues of $100,000 to $100 million in Canada during the last fiscal year, or during the last 12 months for quarterly declarations.
How to apply
- Read the Applicant's Guide:
- Make sure you understand all program criteria and requirements by consulting the updated Applicant's Guide for the current year.
- Check company eligibility:
- Confirm that your company meets all eligibility criteria such as being a for-profit business, incorporated in Canada, with fewer than 500 employees, and annual revenues between $100,000 and $100 million.
- Target market selection:
- Choose up to five international markets where you wish to export or develop business, ensuring that these markets are new or little exploited by your company.
- Preparing the application:
- Compile all the information needed to complete the application, including details of planned business development activities, budget, market objectives, and a justification of how these efforts will support company growth.
- Submitting the application online:
- Complete the application online via the CanExport PME portal, using a compatible browser such as Chrome, Edge or Firefox. Be sure to save your information regularly during the process.
- Application follow-up:
- After submission, you will receive an e-mail confirmation. Applications can take up to 60 business days to process, so plan accordingly.
- Receipt of decision:
- You will be notified by e-mail of the decision regarding your application. If accepted, you will receive a funding agreement to sign and return to finalize the terms of financial support.
- Project management :
- Once funding has been approved, start carrying out the approved activities in accordance with the proposed plan, meeting all requirements and deadlines.
- Reporting and auditing:
- Be prepared to provide progress reports and proof of expenditure, and to respond to any audit requests to verify the use of funds and the achievement of project objectives.
Additional information
- Project duration: The program can support projects spanning one or two government fiscal years. Please ensure that your project and all associated activities are completed within the timeframe specified in your funding agreement.
- Target market criteria: A target market is considered eligible if your annual sales in that market are less than $100,000, or less than 10% of your company's total sales. Clearly define your target markets in your application.
- Cumulative financial assistance: The total amount of financial assistance received from all government sources must not exceed 75% of total project costs. You must disclose all sources of funding when submitting your application.
- Funding ceiling: CanExport PME offers funding of up to 50% of eligible costs per project, with a maximum of $50,000 in funding per project. Companies must contribute at least 50% of total project costs.
- Ineligible expenses: Certain expenses are not covered by the program, such as regular operating costs, expenses incurred prior to project approval, and activities not directly related to the specified target markets.
- Sectoral exclusions: Certain sectors are not eligible for funding, such as recreational cannabis and tobacco. Make sure your project does not involve these industries.
- Documentation required: You'll need to provide documented proof of all expenses and activities, including contracts, invoices and receipts, which will be required for reimbursement claims and potential audits.
- Communicating with CanExport PME: If you have specific questions or need clarification, please feel free to contact the program directly by email or phone for answers before submitting your application.
Contact information
CanExport SMEs Grant Summary
This grant program, CanExport SMEs, provides funding to help Canadian small and medium-sized enterprises (SMEs) expand into global markets through various non-travel activities and market development initiatives.
CanExport SMEs Grant Detailed Explanation
CanExport SMEs is a government funding program designed to support Canadian SMEs in their international business growth by providing financial assistance for a wide range of market development activities. The program covers non-travel initiatives such as market research, intellectual property protection, certification applications, legal and business consultation, SEO optimization, translation services, and attendance at virtual trade shows, networking events, meetings, and conferences.
Eligible companies must be for-profit Canadian entities with fewer than 500 full-time employees and revenue ranging from $100,000 to $100 million in the past fiscal year. The application period typically runs from February to May each year, with projects starting after April 1. Businesses are encouraged to consult the updated Applicant's Guide for detailed instructions before submitting their application.
In addition to financial support for non-travel activities, CanExport SMEs also covers travel-related expenses for visits to foreign markets, in-person participation at trade shows and events, and joining trade missions, subject to government travel advisories. This grant serves as a valuable resource for SMEs looking to expand their global presence and competitiveness by accessing key international markets and resources with the guidance of the Trade Commissioner Service.
By participating in the CanExport SMEs program, eligible businesses can enhance their market intelligence, brand presence, and international reach, ultimately fostering growth, innovation, and strategic partnerships on a global scale. The program's focus on supporting SMEs in various market development initiatives underscores the Canadian government's commitment to promoting entrepreneurship, innovation, and economic prosperity through international trade and collaboration.
The CanExport SME program, managed by Global Affairs Canada in partnership with the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP), is a pivotal initiative aimed at supporting small and medium-sized Canadian enterprises (SMEs) in expanding their export activities to new international markets. This program offers an invaluable opportunity for Canadian businesses to diversify and strengthen their presence on the global stage through financial aid of up to $50,000, covering up to 50% of eligible export project costs.
Program Objective
CanExport SME is designed to help Canadian SMEs overcome the financial challenges associated with entering new international markets. The program aims to mitigate financial risks by providing a grant that can be used for a variety of activities, ranging from business travel and participation in trade shows, to market research and intellectual property protection. This support is essential for businesses looking to extend their reach beyond Canadian borders, enabling them to test markets before making more significant investments.
Eligibility Criteria
To be eligible, businesses must meet several strict criteria. They must be for-profit entities, incorporated in Canada, and have fewer than 500 employees. Additionally, they must demonstrate annual revenues between $100,000 and $100 million, underscoring the operational viability and capability necessary to engage in international activities. These criteria ensure that the program targets businesses that are not only able to contribute to the Canadian economy but are also ready and capable of navigating the international market.
Application Process
The application process for CanExport SME is rigorous and requires meticulous preparation by applicants. Businesses must submit a detailed proposal outlining their export project, including target markets, planned activities, budget, and expected impact on growth. Applications are assessed based on merit and potential contribution to the Canadian economy, and funds are allocated on a first-come, first-served basis, highlighting the importance of an early and well-prepared submission.
Use of Grants
Program funds can be used for a variety of clearly defined activities in eligible categories. These include travel for business meetings or events, targeted marketing and promotion, and expert services such as market research or legal advice. It is crucial that businesses accurately plan the use of funds to ensure all expenditures are eligible and justified, thus maximizing the impact of the grant.
Restrictions and Limitations
Although CanExport SME is an extremely beneficial program for Canadian SMEs, it has specific restrictions regarding eligible types of businesses and activities. For example, businesses in the recreational cannabis sector are not eligible. Moreover, regular business activities or those related to developing new products for the Canadian market are not covered. These restrictions are in place to focus support on external market expansion without overlapping with other forms of government aid.
Economic Impact
The economic impact of the CanExport SME program on the Canadian economy is significant. By assisting SMEs in exploring and establishing themselves in new international markets, the program not only contributes to the growth of individual businesses but also to Canada's economic diversification. Successful international businesses can create jobs, increase revenues, and stimulate innovation within the Canadian economy.
Conclusion
CanExport SME represents a valuable opportunity for Canadian SMEs ready to venture beyond national borders. With substantial funding available to cover a range of export-related activities, the program plays a crucial role in Canada's economic diversification strategy. Interested businesses should pay close attention to the preparation of their application, ensuring that their project is well-aligned with the program's objectives and criteria, to maximize their chances of success.
