Frequently Asked Questions – CanExport SMEs

Impact of COVID-19 outbreak

• My trade show was cancelled and the organizers offered me a credit for future events. Can I still claim this expense as part of my active CanExport SMEs' project?

  Yes. A credit is not a cash refund, therefore you may claim the expense. Note that credits used for future events cannot subsequently be submitted for reimbursement in a new application.

• Is it still possible to submit an application?

  Yes. However, given the Government of Canada's official Global travel advisory, and unpredictable timelines related to the COVID-19 crisis, we will not approve any travel and related activities (i.e., trade shows) until further notice.

  The following categories of market development activities will however remain eligible for funding from the program:

  • Category C: Marketing tools creation, adaptation and translation for target market(s);
  • Category D: Interpretation services for target market(s);
  • Category E: Intellectual property protection, certification and adaptation of contracts for target market(s);
  • Category F: Business, tax and legal advice for target market(s);
  • Category G: Market research, feasibility studies, identification of key contacts and b2b facilitation for target market(s).
• I have an approved CanExport SMEs project but trade shows and other events have been cancelled. What should I do about costs already incurred?

  If you have incurred costs for approved activities, and are unable to get those costs refunded, CanExport SMEs will reimburse 75%.  The usual claim guidelines apply, such as the fact that any costs have to be incurred only after the project was approved. You will not be penalised for any unused funding.

• I have an approved CanExport SMEs project but trade shows and other events have been cancelled. Can I extend my project?

  Extensions will only be approved for events with new confirmed dates (please provide proof). Only one amendment will be allowed per project. Projects ending before April 1, 2020 will not be granted any extension. You will not be penalised for any unused funding. As a reminder, funds allocated by the program can be used in any of your approved target markets and for any of your approved activity categories (including those not dependent on travel to a foreign market), as outlined in your funding agreement.

• I have an approved CanExport SMEs project but trade shows and other events have been cancelled. Can I use funds for other markets?

  Only approved activities in previously approved target markets are allowed. To target markets not already approved by the program, please request to close the project and submit a new application with an updated export business case. You will not be penalised for any unused funding. As a reminder, funds allocated by the program can be used in any of your approved target markets and for any of your approved activity categories (including those not dependent on travel to a foreign market), as outlined in your funding agreement.

• I have an approved CanExport SMEs project but am no longer comfortable travelling. What do I do?

  If you have no additional activities beyond those affected by COVID-19, close your project. Usual claim guidelines apply, such as the fact that any costs have to be incurred only after the project was approved. If you have incurred costs for approved activities affected by COD-19, and are unable to get those costs refunded, CanExport SMEs will reimburse 75% (invoices and proof of payment may be requested). You will not be penalised for any unused funding.

General:

• I already have an active CanExport SMEs project, which I submitted prior to August 22, 2019. How do I take advantage of the program’s new guidelines?

  Unfortunately, only applications received as of August 22, 2019 are able to enjoy the program’s new guidelines. Recipients with active projects submitted and approved prior to this date must comply with the terms and conditions of their current agreement under the program’s old guidelines.

• My company specializes in Agriculture and Agri-Food. How is CanExport SMEs different from Agriculture and Agri-Food Canada (AAFC)'s now-closed Agri-Marketing program?

  Companies in the Agriculture and Agri-Food sector are now eligible for CanExport SMEs funding (starting August 22, 2019). For these companies, moving to CanExport SMEs represents a major positive change, in terms of eligibility, the amount of financial support and faster turn-around (60 vs. 75 business days). AAFC will continue to support companies that have an active Agri-Marketing project at the moment, as well as associations in the agriculture and agri-food sectors.

Eligibility:

• My company is very close to reaching the $100,000 revenue threshold. Is there any flexibility on this and other program eligibility requirements?

  CanExport SMEs' basic eligibility criteria cannot be waived, save for the CRA business number requirement for indigenous-owned companies. The eligibility criteria is deliberately broad: 98% of Canadian small-and-medium sized companies are eligible to apply for funding currently.

  Taking your business global requires a substantial investment of human and financial capital. The minimum annual revenue requirement of $100,000 increases the likelihood that you will be able to complete your CanExport SMEs project as planned. For these reasons, you must ensure that you apply only when all the basic eligibility criteria are met.

• Can my company apply for CanExport SMEs funding if it is already receiving funding from other government sources?

  Companies may apply for funding even if they receive assistance from other government sources (federal, provincial/territorial or municipal). However, the amount of government assistance that can be pooled for any given activity is capped at 75 percent.

  You are required to disclose all sources of government assistance for the activities included in your CanExport SMEs project at the time of application. If you receive additional monies after you have been approved for CanExport SMEs funding, you will need to list these new amounts in your final report once the project is complete. In the event that total government assistance for your project exceeds 75 percent, on behalf of the Government of Canada, you will be asked to reimburse overpayments on a pro rata basis of the total amount of assistance received.

• I own more than one company. Can I submit a CanExport SMEs application for each one?

  CanExport SMEs identifies companies by their Canada Revenue Agency (CRA) business number. Companies with distinct CRA business numbers may each submit an application, but must specify if they have a parent company, subsidiaries, sister companies or affiliates. Related companies cannot receive more than $200,000 in funding per government fiscal year.

• I have sales above $100,000 in a market, but would like to introduce an entirely new product or service there. Do you recognize this as a new eligible market?

  CanExport SMEs provides funding for select export marketing activities to help Canadian companies reach new international markets. The program supports geographic diversification; eligible companies must select markets where they have had minimal sales, as defined in the Applicant's Guide. Efforts to introduce a new product or service into a market where a company had sales above $100,000 (or 10% of total sales) during its last complete tax reporting year are not eligible for CanExport SMEs funding.

• The activities I am planning don't meet the $20,000 budget threshold for a CanExport SMEs project. How should I proceed?

  Only companies participating in a trade mission for under-represented groups in international trade (e.g. youth, women, LGBTQ2 and Indigenous entrepreneurs) organized by Global Affairs Canada may submit a project of less than $20,000 for consideration. All others must submit a project for which expenses total between $20,000 and $100,000.

  CanExport SMEs supports 7 categories of export marketing activities in a maximum of 5 target markets; select the combination that aligns with your company's needs and export development priorities. It is to your advantage to consider your CanExport SMEs activities as part of a cohesive internationalization strategy, for example, by selecting several markets within a region or planning follow-up meetings after attending a trade show. We recommend reading the Applicant's Guide carefully prior to starting your application to familiarize yourself with the full list of eligible and ineligible expenses.

• My company specializes in Agriculture and Agri-Food. How is CanExport SMEs different from Agriculture and Agri-Food Canada (AAFC)'s now-closed Agri-Marketing program?

  Companies in the Agriculture and Agri-Food sector are now eligible for CanExport SMEs funding (starting August 22, 2019). For these companies, moving to CanExport SMEs represents a major positive change, in terms of eligibility, the amount of financial support and faster turn-around (60 vs. 75 business days). AAFC will continue to support companies that have an active Agri-Marketing project at the moment, as well as associations in the agriculture and agri-food sectors.

• I already have an active CanExport SMEs project, which I submitted prior to August 22, 2019. How do I take advantage of the program’s new guidelines?

  Unfortunately, only applications received as of August 22, 2019 are able to enjoy the program’s new guidelines. Recipients with active projects submitted and approved prior to this date must comply with the terms and conditions of their current agreement under the program’s old guidelines.

Applying:

• I’m having technical issues with the application site or have forgotten my password. Who do I contact?

  Our online platform is not compatible with some versions of Internet Explorer; please select a different browser. If you are still having problems or need help resetting your password, contact support@fluidreview.com.

• How do I find my NAICS code or HS code?

  The North American Industry Classification System (NAICS) is an industry classification system developed by the statistical agencies of Canada, Mexico and the United States. It takes into account the specialization of activities generally found at the level of the producing units of businesses. The last version of NAICS Canada 2017 divides the economy into twenty sectors, four sectors are largely goods-producing and sixteen are entirely services-producing industries. To find your company's NAICS code, please visit: North American Industry Classification System (NAICS) Canada 2017 Version 3.0

  The World Customs Organization (WCO)’s Harmonized Commodity Description and Coding System assigns standardized number codes (HS codes) to goods to facilitate their identification when traded. This helps customs agencies determine what tariffs to apply to goods when they cross borders. To find your company's HS code, please visit: HS Nomenclature 2017 edition

• Can I apply for multi-year funding?

  Yes, you can apply for multi-year funding. In your application, you will be asked to submit a budget for your proposed activities divided by government fiscal year (April 1 to March 31 of the following calendar year). We recommend that you take stock of your company's resources and commitments, to develop a realistic and achievable timeline for your proposed CanExport SMEs activities. Funding provided for one government fiscal year cannot be transferred to another government fiscal year;

  Please note that any lapsing funds from your budgeted activities may impact your company's ability to secure future CanExport SMEs funding.

  Please note that you can have only one active CanExport SMEs project at any given time.

• Is travelling outside of my target market (if related to an approved target market) an eligible expense?

  Yes, traveling outside of your target market(s) is an eligible expense if you can clearly demonstrate how it relates to your chosen market(s). For example, if you have selected France as the target market for your CanExport SMEs project, you may wish to attend a major trade show in Germany knowing that important French clients will be attending.

• The activities I am interested in will take place soon. How quickly will you evaluate my application?

  Applications are accepted year-round and assessed on a first-come, first-served basis. You will be notified by email of the decision about your application.  It is important to plan your activities bearing this in mind as any expenses incurred prior to project approval will not be reimbursed. Most applications are approved within 60 business days. We ask that you read the Applicant's Guide carefully prior to starting your application: submitting an application that is incomplete or a project description/budget that isn't sufficiently detailed can result in delays or the refusal of your application.

Once approved:

• Funding is provided as a contribution or a grant. How will CanExport SMEs determine the type of funding I will receive?

  Applicants submit a project for funding consideration. CanExport SMEs determines the most appropriate funding mechanism (non-repayable contribution or grant) by conducting a risk assessment analysis. In so doing, we will consider the soundness of your proposal, the resources you have at your disposal, your prior history with the CanExport SMEs program and whether you are a Trade Commissioner Service (TCS) client.

  Both mechanisms provide $15,000-$75,000 in funding per project, but will be issued at different times. Contribution recipients conduct their activities, incur expenses and submit a claim for reimbursement. Grant recipients, on the other hand, receive their full funding amount for a fiscal year once NRC-IRAP has receives a signed copy of their funding agreement; they do not have to submit a claim for their approved activities. However, they must submit a final report of the activities and results achieved at the end of the project.

• How do I submit claims?

  Grant recipients do not submit claims for approved activities, but contribution recipients must submit claims to be reimbursed for eligible expenses. NRC-IRAP will provide companies approved for a contribution with the template for filing a claim shortly after receiving a signed copy of their funding agreement. If funding for your project is multi-year, NRC-IRAP will also forward a new claim template to the employee responsible for filing claims, as designated in your application, at the start of each government fiscal year (April). You can request a copy of the claim template at any other time by writing to NRC-IRAP (NRC.CanExport.CNRC@nrc-cnrc.gc.ca).

  We highly recommend submitting claims as you incur expenses or at least every 3 months. NRC-IRAP will endeavor to process claims and reimburse eligible expenses within 30 business days.

  Please note that you do not need to include receipts when filing a claim, unless specifically requested to do so. You must, however, hold onto receipts for 3 years after your project is completed in case of an audit. If you are randomly selected for an audit and are not able to provide receipts or a record of expenses to support your claims, you will be required to repay these amounts.

• What are the program's reporting requirements?

  Reporting requirements are the same for all CanExport SMEs recipients. You will be required to submit a Final Report when you have completed your project activities and an annual Snapshot Report for 3 years after completing your project.

  The Final Report asks for a detailed description of the activities completed as part of your CanExport SMEs project, any challenges encountered, as well as concrete project outcomes measured against your initial objectives. You will also need to submit any outstanding claims when filing your Final Report.

  The Snapshot Report is a one-page questionnaire that helps us understand how your company has benefitted from participating in the CanExport SMEs program; once a year, for 3 years after completing your project, your company will be asked to report the number of employees, its total revenue, its revenues from international sales, and to provide a list of countries to which it is exporting.

  NRC-IRAP will forward the Final Report template to companies approved for a grant shortly after receiving a signed copy of their funding agreement; contribution recipients will receive the template by email 2-3 months before the project is due to end.