CanExport SMEs - Applicant’s guide

CanExport SMEs provides up to $50,000 to small and medium-sized enterprises (SMEs) registered in Canada for international business development activities. The program helps develop export opportunities for products and services in new international markets.

Table of contents

1. Program overview
2. Eligible companies
3. How our funding works
4. Eligible international markets
5. Eligible expenses
6. How to build a project
7. Assessment criteria
8. How to apply
9. After applying
10. Contact us

1. Program overview

CanExport SMEs is a funding program designed to promote and enhance Canada’s trade diversification efforts. It offers grants and contributions to Canadian companies to help them prepare for and establish a presence in international markets where they currently have little or no sales.

The program focuses on export marketing activities of existing products and services in foreign markets. Activities designed to attract investment or related to a company’s day to day operations in Canada are ineligible. Activities related to the development, production and distribution of new products and services are also ineligible.

CanExport SMEs supports exploratory activities as well as activities that contribute toward a longer-term strategy for internationalization. Companies may opt for a multi-year project, or submit a new application to build upon a previous project. Including up to 5 international markets helps companies accelerate their growth and pursue a regional expansion strategy. The choice of 7 activity categories allows for a high degree of project customization.

The program is delivered by the Canadian Trade Commissioner Service (TCS), Global Affairs Canada, in partnership with the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP).

2. Eligible companies

2.1 Eligibility criteria

CanExport SMEs is open to all industry sectors.

To be eligible, your company must satisfy 5 essential criteria:

• Be for-profit
• Be an incorporated legal entity, limited liability partnership (LLP) or cooperative in Canada
• Have a Canada Revenue Agency (CRA) business number*
• Have fewer than 500 full-time equivalent (FTE) employees
• Have $100,000 to $100 million in annual revenue declared in Canada during its last complete tax reporting year (or during the last 12 months for monthly and quarterly filers)

* Companies that do not have a CRA business number because they are registered on First Nations reserve lands may write to CanExportSMEs@international.gc.ca.

Example of how to count full-time employees

Your company has 5 part-time employees on its payroll. Each employee works one day per week. Over the span of one year, these employees represent the equivalent of 1 full-time employee.

Declared annual revenue

CanExport SMEs reserves the right to validate information provided in your application. We may do so by requesting copies of your company’s financial statements or any other supporting document.

To complete your application, please use the amount from the following section of your taxes for your company’s last complete fiscal year:

• Line 101 of the GST 34 return for most of Canada
• FP-500-V for Quebec based applicants

For monthly and quarterly filers, please use the most recent 12-month period.

Companies that have not filed a tax return should apply only after they have the required financial information.

We do not grant exemptions to the annual revenue eligibility requirement for companies that:

• almost achieved revenues of $100,000 during their last complete tax reporting year (or during the last 12 months for monthly and quarterly filers)
• achieved revenues of $100,000 but have been in operation for less than one year

2.2 Ineligible companies and projects

Third-party representatives

Third-party representatives are generally not eligible for CanExport SMEs funding. These would include:

• agents
• promoters
• consultants
• trading houses and export brokers (unless for the agriculture and agri-food sector)

Cannabis and tobacco related projects

We welcome projects from all sectors.

However, we do not offer funding for projects that have a focus on recreational cannabis, even in jurisdictions where its use is legal. This includes projects that focus on the cultivation or supply of recreational cannabis, as well as ancillary products related to its cultivation or use. Additionally, we do not provide funding for projects focusing on tobacco, vaping or any similar industries involving recreational substance inhalation.

We make no exceptions to this.

More information about eligibility

If you are unsure about the eligibility of your company, please contact CanExportSMEs@international.gc.ca.

2.3 Companies in the agriculture and agri-food sector

CanExport SMEs supports companies in the agriculture and agri-food sector since August 2019. We work together with Agriculture and Agri-Food Canada to support international business development activities.

CanExport SMEs provides:

• funding for new international business development projects
• support for international markets through the Canadian Trade Commissioner Service

AAFC’s Agri-Marketing program provides:

• funding for the Canada Pavilion Program
• oversight of projects approved by Agri-Marketing before August 2019
• support for domestic Canadian markets

Events covered by the Canada Pavilion Program are not eligible for CanExport SMEs funding. This is true even when AAFC is not providing financial support for participation in the Canada Pavilion Program.

Eligible companies may request CanExport SMEs funding to participate in international trade shows outside of the Canada Pavilion Program only.

The Canada Pavilion Program includes 7 events:

1. GULFOOD (Dubai)
2. FoodEx Japan (Tokyo)
3. Food & Hotel Asia (Singapore)
4. Seoul Food & Hotel (Seoul)
5. Salon International de l’Alimentation (Paris)
6. ANUGA (Cologne)
7. Food & Hospitality China (Shanghai)

3. How our funding works

CanExport SME provides funding on a cost-sharing basis with the recipient. The applicant may submit a maximum budget of $100,000; the minimum budget is set at $20,000.

The program funds up to 50% of eligible costs for $10,000 to $50,000 in funding per project. The applicant is responsible for the remaining 50% (in-kind contributions are not permitted).

3.1 Funding mechanism

CanExport SMEs commits to a funding decision within 60 business days.

Financial assistance can take the form of a contribution or grant.

Contributions work on a reimbursement-basis and have additional reporting requirements. For contributions, applicants must have sufficient cash flow to fund their proposed activities in their entirety, prior to reimbursement.

We determine the funding mechanism based on a risk assessment of the applicant and the project. We assess each application on its own merit. A decision to award a grant is no guarantee that future successful applications by the same company will also receive grants.

3.2 Project time frame

Support for multi-year projects is available. In your application, submit a budget that divides activities by government fiscal year. Please note that:

• The Government of Canada fiscal year begins April 1 and ends on March 31 of the following calendar year
• You cannot transfer funding between fiscal years. You must incur the expense and complete activities within the same government fiscal year for which we allocated the funding
• In your application, it is essential to break down costs for activities by the fiscal year in which you must pay them

Example of budget breakdown by fiscal year

Your company intends to exhibit at a trade show taking place in June 2021. You must register and pay a deposit by December 2020 to guarantee your spot. In your budget, you must:

• request the registration fees and deposit in fiscal year 2020 to 2021
• include other costs related to your company’s participation in the trade show (such as travel) in fiscal year 2021 to 2022

Important! If we approve your project, the start date of the funding agreement (the date that your expenses are eligible) will be the date that you submitted your project.

Because the program is competitive, we cannot guarantee the availability of funds or the start dates of each agreement. The program does not reimburse expenses incurred prior to a project’s start date. There will be no exceptions.

3.3 Trade missions for under-represented groups

Companies participating in trade missions organized by Global Affairs Canada for groups under-represented in international trade (women, LGBTQ2+, visible minorities, and Indigenous exporters) may exceptionally submit a project of less than $20,000 for consideration. Approved projects are funded at 50%.

We make no exceptions to eligibility criteria for companies that participate in a GAC-led trade mission.

3.4 Stacking limit for government funding

CanExport SMEs’ stacking limit applies when funding is accessed from different Canadian government sources for the same activities within a project.

We calculate stacking based on the total funding provided by federal, provincial, territorial or municipal governments, or Crown corporations. Canadian government assistance must not exceed 75%.

Applicants must identify all Canadian government sources of funding for each expenditure submitted as part of their application. If you fail to disclose all other sources of funding, we may be forced to:

• reject the application
• terminate your active project

If total Canadian government assistance exceeds the stacking limit of 75%, CanExport SMEs will be adjust the funding to comply with this limit.

3.5 Funding limits

CanExport SMEs identifies companies by their Canada Revenue Agency (CRA) business number:

• Companies can only have one active project at any given time. Once a project is complete, you may reapply for funding including within the same year.
• Companies can receive a maximum of $99,999 in funding per government fiscal year.
• A group of related companies can receive a maximum of $200,000 in funding per government fiscal year. “Related companies” includes but is not limited to parent company and subsidiaries, sister companies and affiliates.

If you fail to disclose pre-existing relationships and affiliations, CanExport SMEs may terminate the grant or contribution agreement, or take other action. This includes relationships and affiliations between the recipient and its consultants.

4. Eligible international markets

4.1 Target markets

CanExport SMEs supports market diversification by helping Canadian companies introduce their products and services to new international markets.

We define target market as the country (or sub-national market) where your company wishes to secure new customers or generate sales with the help of CanExport SMEs funding.

We consider a market new and eligible if, during the company’s last complete tax reporting year (or last 12 months for monthly and quarterly filers), sales for that particular market were:

• less than $100,000 or
• less than 10% of the company’s total sales (domestic and international sales combined)

The applicant may select a maximum of 5 target markets per project. If you include more than one target market in your application, each market must be new and eligible as stated above. We will refuse activities proposed in markets we deem ineligible.

For our purposes, you should not confuse target markets with:

• markets where your company is pursuing international business development activities outside of your proposed CanExport SMEs project
• a continent or geographical region (such as “Europe”)
• destinations where your activities take place

Example of a target market

Your company is attending a major trade show in Germany knowing that important sales leads from France will be attending. The destination for your activities is Germany. However, your target market is France.

4.2 Ineligible markets

Efforts to introduce new business lines in markets where the applicant has already made more than $100,000 in revenue or more than 10% of the company’s total sales are not eligible for CanExport SMEs funding. To determine sales in a given market, CanExport SMEs considers brick-and-mortar retail sales as well as online sales.

Moreover, Canada has sanctions and related measures in place against a number of countries and sectors. Sanctions may also be against specific individuals and entities. CanExport SMEs may decline funding for reasons of national interest. For more information, please visit Current sanctions imposed by Canada.

4.3 Sub-national markets

Brazil, China, India and the United States (US) are segmented into independent sub-national markets.

Each sub-national market counts as one choice toward your company’s maximum of 5 target markets per project. In your application, you must disclose export sales for the chosen sub-national market.

Brazil: sub-national markets

We recognize Brazil to have 4 markets for the purpose of this program:

East-Central Brazil

• Espírito Santo
• Minas Gerais
• Rio de Janeiro

North and West Brazil

• Acre
• Alagoas
• Amapá
• Amazonas
• Bahia
• Ceará
• Distrito Federal
• Goiás
• Maranhao
• Mato Grosso
• Mato Grosso do Sul
• Pará
• Paraïba
• Pernambuco
• Piauí
• Rio Grande do Norte
• Rondônia
• Roraima
• Sergipe
• Tocantins

São Paulo

• São Paulo

South Brazil

• Paraná
• Rio Grande do Sul
• Santa Catarina

China: sub-national markets

We recognize China to have 4 markets for the purpose of this program:

East China

• Anhui
• Hubei
• Jiangsu
• Shanghai
• Zhejiang

South China

• Fujian
• Guangdong
• Guangxi
• Hainan
• Hunan
• Jiangxi
• Macau

North China

• Beijing
• Gansu
• Hebei
• Heilongjiang
• Henan
• Inner Mongolia
• Jilin
• Liaoning
• Ningxia
• Qinghai
• Shaanxi
• Shandong
• Shanxi
• Tianjin
• Tibet
• Xinjiang

West China

• Chongqing
• Guizhou
• Sichuan
• Yunnan

India: sub-national markets

We recognize India to have 3 markets for the purpose of this program:

North and East India

• Andaman and Nicobar Islands
• Arunachal Pradesh
• Assam
• Bihar
• Chandigarh
• Chhattisgarh
• Haryana
• Himachal Pradesh
• Jammu and Kashmir
• Jharkhand
• Lakshadweep
• Manipur
• Meghalaya
• Mizoram
• Nagaland
• New Delhi
• Odisha
• Punjab
• Rajasthan
• Sikkim
• Tripura
• Uttar Pradesh
• Uttarakhand
• West Bengal

South India

• Andhra Pradesh
• Kerala
• Karnataka
• Puducherry
• Tamil Nadu
• Telangana

West India

• Dadra and Nagar Haveli
• Daman and Diu
• Goa
• Gujarat
• Madhya Pradesh
• Maharashtra

The United States (US): sub-national markets

We recognize the US to have 4 markets for the purpose of this program:

Midwest US

• Illinois
• Indiana
• Iowa
• Kentucky
• Michigan
• Minnesota
• Missouri
• Nebraska
• North Dakota
• Ohio
• South Dakota
• Wisconsin

Southern US

• Alabama
• Arkansas
• District of Columbia
• Florida
• Georgia
• Louisiana
• Mississippi
• New Mexico
• North Carolina
• Oklahoma
• Puerto Rico
• South Carolina
• Tennessee
• Texas
• U.S. Virgin Islands
• Virginia
• West Virginia

Northeast US

• Connecticut
• Delaware
• Maine
• Maryland
• Massachusetts
• New Hampshire
• New Jersey
• New York
• Pennsylvania
• Rhode Island
• Vermont

West US

• Alaska
• Arizona
• California
• Colorado
• Hawaii
• Idaho
• Kansas
• Montana
• Nevada
• Oregon
• Utah
• Washington
• Wyoming

5. Eligible expenses

To be eligible for funding, proposed activities and incurred expenses must take place between the project start and completion dates specified in your funding agreement. All expenses and activities outside of the project phase will not be eligible for reimbursement.

Global Affairs Canada will notify applicants of whether their project has been approved. Once notified, companies must return a signed funding agreement to NRC IRAP within 20 business days. If they fail to do so, they forfeit their funding and will not be reimbursed for their activities.

Important! Applicants must link every activity for which they request funding to a new and eligible target market. We reserve the right to request any evidence in support of costs incurred by your company, including work performed by consultants.

5.1 Category A: Travel for meetings or events with key contacts

CanExport SMEs may support international travel expenses for the purpose of:

• attending trade events to meet with key contacts from target market(s)
• conducting market visits and meetings with key contacts in target market(s)

Travel within Canada is ineligible.

How we assess international travel expenses

We use three (3) criteria to assess whether international travel expenses are eligible:

1- Travel duration

We determine reasonable travel duration based on the scope and complexity of the activities the applicant intends to undertake. The applicant must provide an outline of travel dates and activities they will undertake during each trip. We pay per diem expenses to a maximum of 30 days per trip.

2- Number of participants

Recipients can submit travel expenses for a maximum of 2 individuals per trip: owners of the company or employees based in Canada. Employees based in Canada must be legally able to work in Canada.

3- Costs

We allocate funding per person based on reasonableness* of estimated costs. Estimates that appear high will be flagged and may impact approving your project. Applicants should provide additional explanations for high estimates.

We do not require receipts for meals and incidentals; however, we ask you to keep proof of stay (for example accommodation receipt, airline tickets, etc.) for 5 years in the event of an audit.

*The applicant must provide quotes that are reasonable, economical and take into account, where possible, advance booking. CanExport SMEs commits to a decision within 60 business days.

Eligible expenses for international travel

The following expenses are eligible:

• The cost of refundable return economy or premium economy airfare using the most direct route between Canada, target markets and approved destinations. Layovers or stops are acceptable for the purpose of securing a more economical price.
• The cost of ground transportation within target markets (taxi, car rental, bus or train)

• Per diem for accommodation, meals and incidentals. CanExport SMEs provides a flat-rate per diem of $400 for each approved traveller on days when they travel or conduct business.
• Mandatory visa fees for target market(s)

Ineligible expenses under international travel

This is not a comprehensive list of ineligible expenses. We recommend you also consult the program’s general list of ineligible expenses.

• Travel expenses incurred for markets and destinations that are not approved in your funding agreement
• Travel expenses for employees already residing or based in the target market(s)

• Travel costs for individuals that are not executives of and/or employed by the Canadian applicant company (such as consultant, interpreter, outside legal counsel, foreign partner representative, etc.)
• Reinstatement or refund of reward program points (for example Air Miles, Aeroplan, World points, or any other barter system)
• Cell phone charges such as international roaming charges or data plans, and Wi-Fi fees
• Costs related to obtaining a passport or vaccinations

• Expenses related to the use of a personal vehicle (employee, owner or company vehicle)
• Airfare that is business class, first class or any other classes above economy class

• Insurance (such as travel, medical, dental or rental insurance)
• Costs of hospitality (including bar tabs), entertainment and gifts

5.2  Category B: Trade events

CanExport SMEs may support participation in international trade events to meet with key contacts from target market(s). These include trade fairs, seminars, international forums or private exhibitions. Participation can be virtual or in-person when travel permits. Trade events taking place in Canada are ineligible.

Eligible expenses for international trade events and meetings

The following expenses are eligible:

• The cost of registering* for an international trade event for a maximum of 2 individuals per event. Only owners of the company or employees based in Canada are eligible. Employees based in Canada must be legally able to work in Canada.
• Trade shows must be named and have confirmed dates to be eligible.
• Return shipping and handling costs for print marketing materials, booth pop-ups and products for showcase purposes. For companies in the agri-food sector, the shipping of food samples is also eligible.
• Return shipping and handling costs related to demonstrating a prototype in a target market. Prototypes and demo products shipped to a target market cannot be sold and must be returned to Canada.
   
  * We allow paying a deposit to register for a trade show that will take place in the following fiscal year. Deposits are an eligible expense on the condition that your project is approved and the event itself was included in your proposal. We will not reimburse deposits paid before your project’s start date.

When travel permits, for events requiring in-person participation:

• Costs related to exhibiting at a trade event (namely renting a booth, on-site design and construction services and activating power/Wi-Fi)
• Renting meeting rooms and audiovisual equipment

Ineligible expenses under international trade events and meetings

This is not a comprehensive list of ineligible expenses. We recommend you also consult the program’s general list of ineligible expenses.

• Participation in any event covered by Agriculture and Agri-food Canada’s Canada Pavilion Program
• Production of samples
• Event sponsorship (unless it is a requirement for participation in the event)
• Membership fees
• Company branded apparel

5.3 Category C: Marketing and translation

CanExport SMEs may support creating, adapting or translating marketing tools for target market(s). Adaptation requires significantly enhancing existing marketing tools with new features, functionality or foreign language availability. We will not cover in-house expenses, such as employee salaries nor will we reimburse expenses considered “core” and not specifically designed for the target market (s); it is incumbent on the applicant to demonstrate that the proposed expenses are incremental.

Eligible expenses for marketing tools

The following expenses are eligible:

• The cost of creating or adapting brochures and promotional print materials, videos and websites.
• The cost of translating existing marketing materials. In your application, indicate the language for which you need the translation.
• The cost of online advertising including Search Engine Optimization (SEO). In your application, specify the platform chosen for your target market(s).

Eligible platforms include:

• social media platforms (ex. Facebook, Twitter, LinkedIn, Instagram and WeChat)
• online marketplaces (ex. Amazon and Alibaba)
• search engines (ex. Google and Yahoo)

Ineligible expenses for marketing tools

Important! CanExport SMEs does not support costs related to “core” marketing and promotional materials that support your company’s operations in Canada. These include creating a Canadian website or software development and sales platform.

The following expenses are also ineligible:

• Website application, maintenance and hosting fees
• Fees for influencers and Key Opinion Leaders
• Fees to access online marketplaces (ex. Alibaba, Amazon, TMall)
• Subscriptions and fees to access e-commerce platforms (ex. BigCommerce, Shopify, 3dcart, WooCommerce, Volusion, PrestaShop, Weebly, SquareSpace, Magento and Wix)
• SaaS marketing tools
• Crowdfunding projects
• Sales training
• Traditional advertising (ex. print ads or radio ads)
• The design and translation of product labels
• Promotional or giveaway items (pens, mugs, umbrellas, tote bags, t-shirts, etc.)
• Costs associated with developing or building a prototype for target market(s)

This is not a comprehensive list of ineligible expenses. We recommend you also consult the program’s general list of ineligible expenses.

5.4 Category D: Interpretation services

CanExport SMEs may support paying for an interpreter to facilitate teleconference/videoconference meetings or in person interactions (when travel permits) with key contacts from target market(s). In your application, indicate the language for which you need interpretation.

The interpreter must be an independent contractor and cannot be an employee of your company. As such, travel expenses and per diem for an interpreter are ineligible. We recommend you also consult the program’s general ineligible expense list.

5.5 Category E: Contractual agreements, intellectual property protection, certification

CanExport SMEs may support application fees paid to regulatory agencies for intellectual property (IP) protection and certification in target market(s). Please submit relevant consultant fees separately under Category F.

For a brief overview on meeting international standards, protecting your IP rights and other in-market legal considerations, please consult the Step 9 of the TCS Step-by-Step Guide to Exporting.

Eligible expenses under Contractual agreements, IP protection and certification

The following expenses are eligible:

• Adaptation and translation of contractual agreements (such as sales contract, distribution agreement, nondisclosure agreement, etc.).
• Application fees paid to local authorities for the protection of intellectual property (IP). This includes patents, trademarks, copyrights and protection of trade secrets.
• Application fees related to certification that is required to access a jurisdiction.
• The cost of registering a product in a target market.
• We may consider costs of new certifications to respond to COVID-19 related market requirements on a very limited basis. To be eligible, they must be market specific and COVID-19 related, and you must provide a full and detailed justification.
• Fees to obtain supplier diversity certification for companies that are owned by women (e.g., WeConnect International, WBE Canada), Indigenous Peoples, visible minorities (e.g., Canadian Aboriginal and Minority Supplier Council – CAMSC), or members of the LGBTQ2 community. The applicant must clearly demonstrate that the certification is targeted at a specific market and recognized in that market.

Ineligible expenses under IP protection and certification

This is not a comprehensive list of ineligible expenses. We recommend you also consult the program’s general list of ineligible expenses.

• Application fees for the protection of intellectual property (IP) within Canada.
• Expenses related to testing, examinations or inspections required for certification.
• Fees for the registration of a company in a foreign country.
• Any product development, production or distribution expenses.

5.6 Category F: Consultant – Business, Tax and Legal advice

CanExport SMEs may support paying a consultant for expert advice pertaining to your target markets.

To be eligible, the consultant must be an independent contractor and have a specific expertise outside of what the applicant company is expected to have. Expenses are ineligible where there is indication of an employer-employee relationship.

In your application, you must clearly explain the role of the consultant. Consultants (including another corporation) must not be affiliated with the recipient organization in any way. This means that recipients must complete all transactions at arm's-length terms and for full market value. The program reserves the right to request any evidence in support of the work performed. We can deny any expense incurred by a consultant who is affiliated with the recipient organization or any of its members.

Eligible expenses under consultant fees for expert advice

• expert advice for legal, tax or business matters
• expert advice on regulatory issues (such as market access, intellectual property and certification)
• expert advice for digital and e-commerce marketing

Ineligible expenses under consultant fees for expert advice

• The following expenses are ineligible: Travel and per diem expenses that a consultant does not include within their overall fee
• Salary of an in-market representative or local employee who is conducting core business activities
• Retainer fees paid on a monthly basis

This is not a comprehensive list of ineligible expenses. We recommend you also consult the program’s general list of ineligible expenses.

5.7 Category G: Consultant - Market research, feasibility studies, identification of key contacts, B2B facilitation

CanExport SMEs may support paying a consultant to provide services or create products for international business development (IBD) for target market(s), namely:

• export market research
• identification of key contacts
• facilitation of business-to-business (b2b) meeting programs and matchmaking
• technology feasibility studies

In addition, the purchase of IBD tools may be eligible with appropriate justification:

• prepared research studies/market evaluations
• contact lists from reputable sources
• market research software or subscription

To be eligible, the consultant must have a specific expertise outside of what the applicant company is expected to have, and be an independent contractor. Expenses are ineligible where there is indication of an employer-employee relationship.

In your application, you must clearly explain the role of the consultant. Consultants (including another corporation) must not be affiliated with the recipient organization in any way. This means that recipients must complete all transactions at arm's-length terms and for full market value. The program reserves the right to request any evidence in support of the work performed. We can deny any expense incurred by a consultant who is affiliated with the recipient organization or any of its members.

Ineligible expenses under consultant fees for IBD products and services

• Travel and per diem expenses that a consultant did not include within their overall fee
• Salary for an in-market representative/local employee who is conducting core business activities
• Retainer fees paid on a monthly basis

This is not a comprehensive list of ineligible expenses. We recommend you also consult the program’s general list of ineligible expenses.

5.8 Ineligible expenses

This is not a comprehensive list of ineligible expenses. Please consult category specific exclusions under sections 5.1 to 5.7 as applicable.

Ineligible expenses include:

• Ongoing, regular operational activities or core business, including product development, production and distribution expenses
• Expenses for activities taking place outside of the project phase of the funding agreement
• Expenses related to non-specified activities, such as those marked “To Be Confirmed”
• Expenses related to preparing an application for CanExport SMEs or submitting claims
• Capital costs and office supplies (such as computers, office equipment, audio-visual equipment, office space, supplies and business cards)
• Overhead expenses (such as warehousing, long term legal services, utilities and photocopying)
• Employee salaries and commissions
• Honoraria for professional services
• Expenses relating to lobbying, public relations, policy development and influence
• Giveaway items (pens, mugs, umbrellas, tote bags, t-shirts, etc.)
• Goods and Services Tax (GST), including any GST share of the Harmonized Sales Tax
• Any refundable portion of taxes, duties or other items for which a refund or rebate is available (ex. carbon taxes and credits)
• All other costs that could be deemed as subsidizing a product's selling price, therefore contravening Canada’s international trade obligations. The CanExport SMES program reserves the right to make this determination.

Important! If an item is not listed in Section 5, it does not mean that it is an eligible expense. If you are unsure about the eligibility of any of your proposed expenses, please contact us prior to undertaking the activity and incurring the expense.

Contact CanExport SMEs (CanExportSMEs@international.gc.ca), copying NRC IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca).

6. How to build a project

CanExport SMEs defines a project as the ensemble of activities for which a company requests funding in its application. Do not confuse it with a construction project or your company’s broader expansion plans.

Your application must tell the full story of your company’s plans in terms of CanExport. Answers should be concise. The program will assess the quality and the pertinence of information provided.

You must satisfy the program that the project put forward in your application:

• explicitly connects each proposed activity to a target market
• presents a budget and costing that is fully broken down and justified
• aligns with the company’s international business plans
• is carefully crafted with regard to guidance provided in this document

Steps to submit a successful application

Step 1: Select a maximum of 5 international markets in which your company wishes to make sales or secure new customers.

• In your application, include reasons for choosing your target markets.

Step 2: Confirm that each market you have chosen meets CanExport SMEs’ definition of a new and eligible target market.

• In your application, indicate your company’s total revenue and revenues for each target market for the last complete fiscal year (or past 12 months for quarterly or monthly filers).
• When including sub-national markets, indicate your company’s total revenue in the sub-national market selected.

Step 3: For each target market, set realistic objectives and outline a detailed plan of action.

• In your application, present a solid business case for undertaking the project.

Step 4: For each target market, select from 7 categories of activities to help you achieve your objectives. The exact combination will vary depending on market requirements and your company’s profile.

• In your application, verify that each of your proposed expenses is eligible by carefully reviewing Section 5: Eligible expenses.
• If your project necessitates travel outside of your target markets, clearly explain how these trips relate to your target market(s).

Step 5: Provide a detailed and specific budget. Do not include any activities that are “To be confirmed” or “To be determined.”

• In your application, verify that the total budget for your proposed activities is between $20,000 and $100,000.
• For each trip planned, indicate the number of travellers and the number of days they expect to travel or conduct business.

Step 6: Allow a realistic timeframe in which to conduct your activities.

• In your application, allow 60 business days between the date you submit your application and the date your first activity takes place.
• Select a project end date that makes sense given your company’s resources. Be aware that companies can have only one active CanExport SMEs project at a time.

7. Assessment criteria

CanExport SMEs is a competitive program with limited funding. We assess all applications against the same merit criteria and score the application relative to:

• project size
• complexity
• funding amount requested

We award funding on a competitive basis for activities that will be most effective in achieving their international business development goals. We take into account a company’s resources and capacities. Funding decisions are final and non-negotiable.

We assess applications using the following 5 criteria:

Criteria 1: Pursuing new or expanded initiatives (“Incrementality”)

The program will assess if the project:

• goes beyond the company’s core activities or everyday business activities in Canada
• represents new or expanded initiatives aligned with the company’s international business development goals
• targets international markets that are new and eligible for all proposed activities

Criteria 2: Export business case

The program will assess the quality and pertinence of answers to the following questions:

• How does the proposed project align with the firm's overall business strategy?
• Are the objectives and expected outcomes of the project realistic?
• How do your proposed activities support the project’s objectives?
• Are the proposed activities and expenses reasonable?
• Has the applicant adequately prepared for their target markets?

Criteria 3: Market potential

The program will assess the choice of target markets by:

• weighing opportunities for the applicant’s products and services against potential challenges
• looking at the soundness of proposed activities given the applicant’s industry sector

Criteria 4: Exporting readiness and history

The program will review:

• capacity in terms of human and financial resources to undertake proposed activities
• previous export history
• performance* on previous CanExport projects
• past interactions with CanExport, the Trade Commissioner Service, and partners of Global Affairs Canada

*CanExport SMEs takes into consideration a company’s funding lapse rate. To build a strong track record with the program, recipients should claim at least 80% of approved funding.

Criteria 5: Global Affairs Canada trade priorities

We give special consideration to projects aligned with Government of Canada’s Export Diversification Strategy. These include projects that:

• align with Global Affairs Canada-designated priority sectors in chosen market(s)
• are put forward by under-represented groups in international trade (women, Indigenous peoples, LGBTQ2+, visible minorities, and youth)
• focus on markets where Canada has signed free trade agreements such as:
  • the Comprehensive Economic and Trade Agreement (CETA)
  • the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

8. How to apply

8.1 Working with the Trade Commissioner Service

The Canadian Trade Commissioner Service (TCS) helps Canadian companies navigate the complexities of international markets and make better business decisions. On the ground in more than 160 cities worldwide, the TCS shares market intelligence, uncovers opportunities for Canadian companies and helps to manage risk and reduce business costs. The TCS is a free service of the Government of Canada that helps companies prepare for international markets, assess market potential, find qualified contacts, resolve business problems, and provide advice on how to protect IP when doing business abroad. Step 9.8 of the TCS Step-by-Step Guide to Exporting provides basic information on protecting IP rights. For further guidance, please reach out to your trade commissioner.

Applicants can find a trade commissioner responsible for their sectors in Canada and in international markets.

For assistance with domestic Canadian markets, we invite applicants from the agriculture and agri-food sector to consult with Agriculture and Agri-food Canada.

8.2 Submitting an application

Application system

Note: Our online portal is optimized for Chrome, Edge and Firefox.

Ensure you regularly save your information as you progress through the online application process. For security reasons, your session will automatically time out after 2 hours of inactivity and unsaved work will not be saved. Typing is not considered activity. Please note you must complete a page before you can save.

You will lose your information if you do not save before:

• closing the active window or your browser
• before going to another section of the application
• before changing the language of the application

Steps for submitting a CanExport SMEs application

NEW CanExport SMEs applicants or applicants who have not had a previously approved application:

• Review the Applicant’s Guide.
• Register for an account on the online portal.
• Complete your information under My Profile and click Update.
• On the CanExport SMEs landing page, click on Apply Now!
• Complete the Application Basic Eligibility. Consult Section 2.1 of the Applicant’s Guide.
• If you receive an email stating Basic Eligibility: Criteria Not Met, consult Section 2.1 of the Applicant’s Guide.
• If you receive an email stating Pre-Screening information validated, update the Account Profile (this can only be done by the Account Primary Contact - Legal Signing Authority). For more information refer to Help tab > CanExport SME and the document Manage Portal Contacts and Roles.
• Once the Account Profile has been submitted, complete the CanExport SMEs Application. Click on My Applications tab > CanExport. On this page, click New Application > SME.
• Submit a completed application at least 60 business days before the start date of the first proposed activity. Consult Section 8.3 of the Applicant’s Guide for more details on processing timelines.

CanExport SMEs recipients with current or previously approved CanExport SMEs Projects:

• Review the Applicant’s Guide.
• Existing clients should not register for a new account. A redemption email invitation was sent to activate your account. If you did not receive one contact: NRC.CanExport-Help-Aide-CanExport.CNRC@nrc-cnrc.gc.ca 
• Once you have activated your account, complete your information under My Profile and click Update.
• Update the Account Profile (this can only be done by the Account Primary Contact -Legal Signing Authority). For more information refer to Help tab > CanExport SME and the document Manage Portal Contacts and Roles.
• Once the Account Profilehas been submitted, complete the CanExport SMEs Application. Click on My Applications tab > CanExport. On this page, click New Application > SME.
• Submit a completed application at least 60 business days before the start date of the first proposed activity. Consult Section 8.3 of the Applicant’s Guide for more details on processing timelines.

 If you are having technical problems or need help resetting your password, contact NRC.CanExport-Help-Aide-CanExport.CNRC@nrc-cnrc.gc.ca  

Budget section

It is essential that your application includes a budget with costing that is fully broken down and justified. If your budget does not include sufficient details, activities may not be funded or may receive less funding.

Completed applications

An application cannot be edited or changed once submitted. Before submitting, ensure your application is complete, true and follows the program requirements outlined in this document.

Upon submitting your application, you will receive an email confirmation of receipt. Our system will automatically assign your application a unique submission identifier (such as A-4145075999). Please include this submission identifier in the subject line of all future correspondence with CanExport SMEs and NRC IRAP.

Concurrent projects

CanExport SMEs does not support concurrent projects. We will not assess new applications where documents for active projects are still outstanding. NRC IRAP requires approximately 30 business days to process your final claims and report before you can submit a new application to CanExport SMEs.

We do not consider CanExport Innovation projects to be concurrent projects. Companies that have applied or been approved for CanExport Innovation funding may submit a project for consideration to CanExport SMEs. Any overlap in expenses is subject to the stacking limit for government funding.

8.3 Processing time

CanExport SMEs requires you to submit a completed application at least 60 business days in advance of the first proposed activity’s start date. We may refuse funding for activities taking place less than 60 business days from when you submit the application.

9. After applying

9.1 Decision

After we assess the application, we send a decision email to the signing authority identified in the application form. The Program is competitive and funds are limited: decisions are final and non-negotiable.

Any expenses incurred before CanExport SMEs communicates a decision are at the applicant’s own risk.

CanExport SMEs can provide information about your application or project only to individuals named under step 2 of 13 of the application portal. You may authorize us to speak with additional individuals by sending an email to this effect (CanExportSMEs@international.gc.ca).

Unsuccessful applicants

Applicants who were not approved for funding may submit a new application with revised responses. Activities included as part of a new application must respect the timeline of 60 business days required of all application submissions.

Successful applicants

Recipients can expect to receive their funding agreement by electronic mail within 10-12 business days. An authorized officer of your firm will need to review, sign and return the agreement within 20 business days of the date it was ratified by NRC IRAP.

Companies that fail to return a signed funding agreement to NRC IRAP within the prescribed timeline of 20 business days forfeit their funding. We will not reimburse them for their activities.

The funding agreement is a legally binding document. It stipulates the responsibilities and obligations of both signing parties, the recipient and CanExport SMEs, on behalf of Global Affairs Canada.

The funding agreement outlines:

• project start date
• project end date
• approved target markets
• approved activities
• funding amounts (by fiscal year in case of multi-year projects)
• reporting requirements

For operational reasons, the program reserves the right to shorten the end date of your project. This may happen if we consider that activities taking place at the end of a fiscal year could be moved earlier.

The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) manages your funding agreement. NRC IRAP is also responsible for processing claims and issuing payments. Please direct all questions regarding claims and reporting to NRC IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca).

9.2 Payments

CanExport SMEs will reimburse eligible expenses in Canadian dollars. If you incur project expenses in another currency, you must keep proof of the exchange rate for the transaction.

Funding recipients must keep adequate financial records and segregate CanExport project costs from their normal operation costs. This is to provide traceability of CanExport expenses.

Recipients must keep receipts, proofs of payment, and proof of travel for 5 years after completion of their project in case of an audit.

Contribution recipients

Successful applicants to whom we provide contribution funding must submit reimbursement claims for eligible expenses. Recipients must include a status report with each claim.

We recommend submitting claims every 3 months at a minimum. NRC IRAP will assess the claim and status report. Reimbursement is based on the results of the assessment. NRC IRAP will endeavour to process claims and reimburse eligible expenses within 30 business days.

NRC IRAP provides templates for claims and status reports after they receive a signed copy of your funding agreement. They will send templates to the legal signing authority identified in the application.

You may request additional copies of the claim template by writing to NRC IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca).

Grant recipients

NRC IRAP will issue a payment to successful applicants who we approve for grant funding after NRC IRAP receives a signed copy of your funding agreement. Grant recipients do not submit claims.

For multi-year projects, the program makes payments according to the fiscal year distribution of your agreement.

Payments may take up to 30 business days.

9.3 Amendment to the funding agreement

It is possible for recipients of contribution funding to request a formal change to the terms of their funding agreement. However, we only consider amendments on an extraordinary basis when applicants provide a strong rationale.

We will consider a request for an amendment only if the recipient:

• has a signed contribution agreement
• has submitted at least one claim
• makes the request well in advance
• has not been granted an amendment previously for the same project

Please note that we cannot amend:

• grant agreements
• expired contribution agreements

Knowing when to request an amendment

Amendments to a contribution agreement are most commonly requested to:

• add a target market
• add a travel destination
• remove an approved target market
• add an activity category
• remove an approved activity category
• request additional funding
• change dates of activities or extend a project

9.3.1 Adding a target market

Expanding into a target market outside of your approved project is a significant change from the original agreement. As such, it is ineligible for an amendment. In order to pivot to a new target market, you will need to close your active project and submit a new application.

9.3.2 Adding a travel destination

We require an amendment when travel to a new destination supports activities in approved target markets. You must submit the request before travelling. We will not approve trips to new destinations retroactively. To register a new travel destination, contact CanExportSMEs@international.gc.ca, copying NRC IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca).

9.3.3 Removing an approved target market

We do not require an amendment if you will not be conducting activities in all of the target markets approved for your project. You may reallocate funding for a given target market to other approved target markets, as long as you respect the total allocation per fiscal year.

9.3.4 Adding an activity category

You must make requests for an additional activity category prior to incurring expenses in the new category. CanExport SMEs reserves the right to approve or refuse amendment requests.

To request an amendment to add an activity category, write to CanExportSMEs@international.gc.ca, copying NRC IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca).

9.3.5 Removing an approved activity category

We do not require an amendment if you will not be conducting activities in all of the categories approved for your project. You may reallocate funding for a given activity category to other approved categories and approved target markets, as long as you respect the total allocation per fiscal year.

9.3.6 Requesting additional funding

We will only consider amendments requesting additional funds on an extraordinary basis and if a strong rationale is provided. CanExport SMEs will assess how your project is progressing. Requests for additional funding by a company that has yet to submit any claims will be refused automatically.

To request an amendment for additional funding, write to CanExportSMEs@international.gc.ca, copying NRC IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca).

9.3.7 Changing dates of activities or extending the project end date

We allocate funding amounts by government fiscal year, which runs from April 1 to March 31 of the following year. We cannot reallocate funds from one fiscal year to another. It is not possible to extend activities or the project end date into a new government fiscal year.

If you wish to undertake activities on different dates than those submitted in your application, you may do so without an amendment if the activity takes place before your project’s end date. Under exceptional circumstances, we may allow for a project extension. However, the new end date must not go into a new government fiscal year.

9.4 Disclosure of change of circumstances

You should let us know if anything is likely to affect your project. Keep us informed about key changes to your company or its business activities, particularly if they affect your ability to complete your project, carry on business and pay debts due.

You must also inform us if you become aware of a breach of terms and conditions under the funding agreement, or any changes to information that identifies your company such as:

• name
• address
• designated representatives
• bank account details

9.5 Closing a project

We only allow applicants to have one active project at a time. Applicants can close their project by submitting a final report and any outstanding claims to NRC IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca). Processing time for final claims is approximately 20 business days. Once NRC IRAP officially closes the project, you are free to submit a new project for consideration to the CanExport SMEs program.

9.6 Reporting requirements

Interim report

Grant recipients approved for a multi-year project must complete an interim report by March 31. They must do so to receive payment for the next fiscal year. The interim report asks for details on how your project is progressing.

Final report

All recipients must submit a final report no later than 7 days after the project completion date. Contribution recipients must include a final claim with their final report.

The final report will ask you to detail:

• activities completed
• project outcomes in relation to expected results
• successes in target markets
• successes outside of target markets as a result of CanExport SMEs activities
• challenges encountered
• lessons learned

NRC IRAP provides recipients with a template for the final report. We include the template with your fully executed funding agreement. Recipients may also request a copy by contacting NRC.CanExport.CNRC@nrc-cnrc.gc.ca.

In the event that you do not satisfy the terms and conditions of the funding agreement, we may request repayment of funds.

Snapshot report

We ask that recipients complete a one-page questionnaire once a year for 3 years following the end of the project phase. The snapshot report helps us understand how your company has benefitted from participating in the CanExport SMEs program:

• number of jobs created
• total revenues generated
• new markets where your company is exporting

We collect this information for statistical purposes only. It does not factor into the evaluation of future CanExport SMEs applications.

Audits

Recipients may be subject to an audit. If your company is selected for audit, we will notify you well in advance. Audits are carried out by GAC/NRC IRAP or professional auditing firms on their behalf. You must maintain records of activities as well as receipts for all expenses related to your approved project for 5 years. If an audit identifies overpayment, it must be reimbursed.

Site visits

On occasion, a trade commissioner with Global Affairs Canada may visit companies at their place of business or at the site where approved projects and activities are taking place.

Program evaluation

Evaluating program performance is a key part of the federal government's strategy to manage for results. We may ask recipients of the CanExport SMEs program to provide information on how their project has performed to an evaluator. Funding recipients may also be asked to respond to a questionnaire to support an evaluation of the program.

10. Contact us

If you have questions that this guide does not answer, please contact: CanExportSMEs@international.gc.ca.
Due to the high volume of requests and applications that we receive, we are only able to respond to questions that this guide does not already answer or that are not covered by our Frequently Asked Questions.
Please contact the National Research Council of Canada (NRC.CanExport.CNRC@nrc-cnrc.gc.ca) if you have questions about:

• your funding agreement
• reporting
• claims

If you are having difficulty with our online application system or technical problems related to your account, NRC.CanExport-Help-Aide-CanExport.CNRC@nrc-cnrc.gc.ca