Deadline: 29-May-2026
The CanExport SMEs program supports eligible Canadian small and medium-sized enterprises by covering up to 50% of the costs of international business development activities. For the 2026–27 fiscal year, the program offers competitive funding of $10,000 to $50,000 per project to help SMEs expand into new foreign markets while advancing Canada’s trade diversification goals.
Program Overview
The CanExport SMEs program is delivered by Canada’s Trade Commissioner Service (TCS) to help Canadian small and medium-sized enterprises (SMEs grow internationally.
The program supports companies by sharing the financial risk of entering new foreign markets through cost-sharing for eligible international business development activities. It is a key tool under Canada’s Trade Diversification Strategy, which aims to double non–United States exports over the next decade.
Funding is awarded on a competitive basis, and meeting eligibility requirements does not guarantee approval.
Strategic Objectives of the Program
CanExport SMEs is designed to support Canada’s broader economic and trade priorities.
The program aims to:
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Help Canadian SMEs expand into new international markets
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Promote trade diversification beyond the United States
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Support Canada’s Trade Diversification Strategy
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Align with the Buy Canadian Policy and defence export promotion priorities
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Ensure responsible trade aligned with government commitments and restrictions
The program allows applicants to target either the United States or non-U.S. markets, but not both within the same project.
Key Program Rules and Policy Updates
Several important policy features apply to the 2026–27 CanExport SMEs program.
Key rules include:
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Applicants may target either the U.S. market or non-U.S. markets, but not both
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Sub-market segmentation has been removed; each country counts as one target market
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Only one project application per company is permitted
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Funding allocation is competitive, not first-come, first-served
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All applicant contributions must be financial; in-kind contributions are not allowed
These rules are designed to streamline assessment and strengthen the program’s focus on diversification and impact.
Available Funding and Cost-Sharing Structure
For the 2026–27 fiscal year, CanExport SMEs has a significant funding envelope.
Funding details include:
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Total program funding: Approximately $31 million
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Funding reserved for U.S.-focused projects: Approximately $3.1 million
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CanExport contribution per project: $10,000 to $50,000
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Maximum cost-share: Up to 50% of eligible project costs
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Total project budget range: $20,000 to $100,000
All project costs must be cash expenses incurred by the applicant company.
Who Is Eligible to Apply?
Eligible Applicant Companies
Applicants must meet all of the following criteria:
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Be a for-profit enterprise legally established in Canada
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Hold an active Canada Revenue Agency (CRA) business number
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Be incorporated, a limited liability partnership, or a cooperative
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Employ between 3 and 500 full-time employees
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Report annual revenues between $300,000 and $100 million in the most recent tax year
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Legally own the goods or services intended for export
Ineligible Applicants
The following entities are not eligible under the program:
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Sole proprietorships
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Limited partnerships
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Intermediaries such as agents or distributors
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Franchisees
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Consultants applying on behalf of companies
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Entities unable to demonstrate meaningful economic ties to Canada
Applications must be submitted directly by the eligible company.
Application Authority and Submission Rules
Each application must be submitted by an individual with legal signing authority for the applicant company.
Important submission requirements include:
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The authorized individual must be registered in the company’s online profile
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Applications cannot be submitted using a different CRA business number
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Consultants cannot act as applicants or submit applications on behalf of companies
Failure to meet these requirements will result in application ineligibility.
Eligible Markets and Project Scope
Companies may apply for funding to support expansion into new international markets.
Key considerations include:
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Projects may target one or more countries, depending on program guidelines
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Each country counts as a single target market
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Projects must align with the program’s trade diversification objectives
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Activities should demonstrate a clear pathway to increased exports
Only one project application is allowed per company per intake.
Sector Eligibility and Restrictions
Most business sectors remain eligible under CanExport SMEs, but several sector-specific rules apply.
Priority and Emphasis Areas
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Greater emphasis is placed on defence and dual-use technologies, goods, and services
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Applicants pursuing defence-related opportunities must clearly identify these projects
Restricted or Ineligible Sectors
The program does not support:
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Agriculture, agri-food, fish, and seafood companies
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Recreational cannabis
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Tobacco and vaping products
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Projects related to unabated fossil fuels
Conditionally Eligible Sectors
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Ag-tech and food-tech companies remain eligible
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Applications involving sectors subject to trade disputes may undergo additional assessment or be declined
Applicants are encouraged to carefully review sector eligibility before applying.
How to Apply: Step-by-Step Guide
Step 1: Confirm company eligibility, including revenue, employee count, and incorporation status.
Step 2: Identify a new target market aligned with the program’s diversification objectives.
Step 3: Design a project with eligible international business development activities and a total budget between $20,000 and $100,000.
Step 4: Determine the CanExport funding request between $10,000 and $50,000 (up to 50% of costs).
Step 5: Ensure all costs are financial and eligible under program guidelines.
Step 6: Submit the application online through the CanExport SMEs portal using an authorized signatory.
Why This Program Matters
CanExport SMEs plays a critical role in helping Canadian companies compete globally.
The program matters because it:
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Reduces financial risk for SMEs entering new markets
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Encourages export diversification beyond the U.S.
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Supports high-growth and innovative sectors
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Aligns trade promotion with national policy priorities
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Strengthens Canada’s global commercial presence
By supporting early-stage international expansion, the program helps Canadian businesses build long-term export capacity.
Common Mistakes to Avoid
Applicants should avoid the following common errors:
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Applying for both U.S. and non-U.S. markets in the same project
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Submitting budgets outside the $20,000–$100,000 range
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Including in-kind contributions instead of financial costs
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Applying through a consultant or unauthorized individual
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Proposing activities in ineligible or restricted sectors
Frequently Asked Questions (FAQs)
How much funding can a company receive?
Companies may request between $10,000 and $50,000 per project, covering up to 50% of eligible costs.
How many projects can a company apply for?
Each company may submit only one project application per intake.
Can companies target both U.S. and non-U.S. markets?
No. Projects may target either the U.S. market or non-U.S. markets, but not both.
Are in-kind contributions allowed?
No. All project contributions must be financial.
Are agriculture and food companies eligible?
Agriculture, agri-food, fish, and seafood companies are no longer supported. However, ag-tech and food-tech companies remain eligible.
Who must submit the application?
An individual with legal signing authority for the applicant company must submit the application.
Is funding guaranteed if eligibility criteria are met?
No. Funding is awarded competitively, and eligibility does not guarantee approval.
Conclusion
The CanExport SMEs Program 2026–27 offers Canadian small and medium-sized enterprises a valuable opportunity to reduce the costs of expanding into new international markets.
With competitive funding of up to $50,000 per project and a strong focus on trade diversification, the program supports export-ready Canadian companies in building global market presence while aligning with Canada’s economic, trade, and policy priorities. Eligible SMEs are encouraged to carefully review sector rules, design focused projects, and submit high-quality applications to maximize their chances of success.
For more information, visit Government of Canada.
