Open Call: Business Succession Planning Support Initiative (Canada)

Deadline: 28-Jul-2026

Innovation, Science and Economic Development Canada is offering funding to support business succession planning resources for Canadian small businesses and entrepreneurs. The call will provide up to $3 million over two years to one selected recipient to develop bilingual tools, training, events, and guidance for business sellers and buyers.

The initiative aims to strengthen business continuity, improve awareness of ownership transition planning, and help entrepreneurs navigate business sales, acquisitions, valuation, taxation, and alternative ownership models. Eligible applicants include Canadian incorporated not-for-profit organizations, business support organizations, academic institutions, co-operatives, Indigenous not-for-profits, accelerators, and incubators.

What is the Business Succession Planning Call for Proposals?

The Business Succession Planning call for proposals is a funding opportunity launched by Innovation, Science and Economic Development Canada.

The call supports the development of practical tools and services that help Canadian small businesses and entrepreneurs prepare for business ownership transitions.

The initiative is funded through the Small Business and Entrepreneurship Development Program.

Main Purpose of the Initiative

The main purpose of the call is to strengthen business succession planning across Canada.

The initiative aims to:

• Improve business continuity
• Increase awareness of succession planning
• Help business owners prepare for ownership transitions
• Support buyers seeking to acquire small businesses
• Address gaps in business transfer resources
• Provide bilingual support in English and French
• Strengthen Canada’s small business support ecosystem

Funding Amount

ISED has allocated $3 million over two years, starting in 2026–27.

The selected recipient may receive a non-repayable contribution of up to $3 million.

The funding will support eligible project activities that must be completed by March 31, 2028.

Who is Eligible?

Eligible applicants must be Canadian incorporated organizations.

Eligible applicants may include:

• Not-for-profit organizations
• Associations
• Social enterprises
• Co-operatives
• Academic institutions
• Research institutes
• Business support organizations
• Innovation hubs
• Indigenous not-for-profit organizations
• Accelerators
• Incubators

Partnerships and consortium applications are permitted.

For consortium applications, an eligible not-for-profit organization must lead the application.

Required Applicant Experience

Applicants must demonstrate relevant experience and capacity.

Eligible applicants should show experience in:

• Business succession planning
• Business transfer support
• Developing learning tools
• Delivering training programmes
• Supporting entrepreneurs and small businesses
• Promoting initiatives to diverse communities
• Maintaining national networks
• Providing services in English and French
• Managing confidential information securely
• Completing national-scale projects on time

What the Selected Recipient Will Do

The selected recipient will develop and deliver resources that support both business sellers and buyers.

The project will include:

• Interactive learning resources
• Training materials
• Virtual sessions
• Four in-person regional events
• An online interactive resource map
• Roadmaps for sellers and buyers
• Feedback collection and ecosystem gap analysis

Key Learning Topics

The initiative will support resources on major issues involved in business ownership transition.

Topics may include:

• Finding buyers
• Finding sellers
• Developing succession plans
• Business valuation
• Capital gains taxation policy
• Roles of experts in the succession process
• Business conversions to co-operatives
• Social acquisitions
• Employee Ownership Trusts
• Business continuity planning

Training Resources

The selected recipient will also create training resources focused on essential skills.

These may include:

• Communication
• Leadership
• Problem-solving
• Negotiation readiness
• Transition planning
• Decision-making during ownership transfer

These skills are important for both sellers and buyers during the business succession process.

Hybrid Delivery Model

Support will be delivered through a hybrid model.

This means services will include both virtual and in-person activities.

The project will include four in-person events across:

• The Territories
• Western Canada
• Central Canada
• Eastern Canada

Services must be available in both English and French.

Online Interactive Map

The project will include an online interactive map.

The map will help users find existing business succession planning resources by:

• Region
• Economic sector

This tool will make it easier for small business owners and entrepreneurs to locate relevant support across Canada.

Seller and Buyer Roadmaps

The selected recipient will develop two practical roadmaps.

Roadmap for Sellers

The seller roadmap will guide business owners through the process of preparing to transfer or sell a business.

It may cover planning, valuation, buyer search, professional advice, tax considerations, and transition steps.

Roadmap for Buyers

The buyer roadmap will guide entrepreneurs through the process of acquiring a business.

It may cover finding opportunities, assessing business value, financing, due diligence, ownership models, and transition planning.

Ecosystem Gap Analysis

The project will also identify gaps in Canada’s business succession planning ecosystem.

The selected recipient will collect feedback through:

• Project activities
• Training sessions
• Events
• Interactions with entrepreneurs
• Interactions with small business owners

This feedback will help assess the effectiveness of services and identify opportunities for improvement.

Key Concepts Explained

Business Succession Planning

Business succession planning is the process of preparing for the transfer of business ownership or leadership. It helps ensure that a business can continue operating after an owner exits, retires, sells, or transfers control.

Business Transfer Support

Business transfer support helps sellers and buyers manage the legal, financial, operational, and strategic steps involved in transferring ownership.

Business Valuation

Business valuation is the process of estimating the financial value of a business. It is important for pricing, negotiations, financing, and tax planning.

Employee Ownership Trust

An Employee Ownership Trust is a structure that allows employees to hold an ownership interest in a business through a trust arrangement.

Social Acquisition

A social acquisition involves transferring ownership of a business in a way that protects community value, jobs, social purpose, or local economic benefit.

Business Conversion to Co-operative

A business conversion to a co-operative changes the ownership structure so that members, workers, users, or community stakeholders can collectively own and govern the business.

Why Business Succession Planning Matters

Business succession planning is important for Canada’s small business economy.

Many small business owners may need to sell, transfer, or transition their businesses in the coming years.

Without proper planning, businesses may close, jobs may be lost, and local communities may lose important services.

This initiative helps strengthen business continuity by giving sellers and buyers the tools they need to manage ownership transitions effectively.

How the Funding Works

The call will competitively select one recipient.

The selected organization will receive a non-repayable contribution of up to $3 million.

The recipient will be responsible for developing and delivering national business succession planning resources and supports.

Project activities must be completed by March 31, 2028.

How to Apply

Applicants should prepare a proposal that clearly demonstrates capacity, experience, national reach, and ability to deliver bilingual services.

Suggested Application Steps

1. Confirm that the applicant is a Canadian incorporated eligible organization.
2. If applying as a consortium, identify an eligible not-for-profit lead.
3. Demonstrate experience in business succession planning or business transfer support.
4. Explain how the project will support both sellers and buyers.
5. Describe the proposed learning resources and training tools.
6. Explain how virtual and in-person services will be delivered.
7. Plan four in-person events across the required Canadian regions.
8. Show capacity to deliver services in English and French.
9. Describe how confidential information will be protected.
10. Explain how the interactive map and roadmaps will be developed.
11. Include a feedback and ecosystem gap analysis approach.
12. Prepare a realistic project plan and budget.
13. Confirm that the project can be completed by March 31, 2028.
14. Submit the application according to ISED’s call requirements.

Expected Results

The initiative is expected to improve access to succession planning support for Canadian entrepreneurs and small business owners.

Expected results include:

• Better awareness of succession planning
• More accessible bilingual resources
• Practical guidance for business sellers
• Practical guidance for business buyers
• Improved understanding of valuation and taxation issues
• More knowledge of alternative ownership models
• Stronger business continuity planning
• Better understanding of ecosystem gaps
• Improved national coordination of succession support

Why It Matters

The Business Succession Planning call helps address a critical need in Canada’s small business ecosystem.

Business ownership transitions can be complex, especially for entrepreneurs who lack access to clear guidance, expert support, or regional resources.

By funding national tools, training, events, and roadmaps, the initiative can help more businesses remain active, protect jobs, and support local economic resilience.

The call also supports alternative ownership models that may help preserve businesses in communities where traditional sale options are limited.

Tips for Strong Applications

A strong application should show that the applicant can deliver practical, bilingual, national-scale support.

Applicants should focus on:

• Clear experience in business succession or transfer support
• Strong national and regional networks
• Demonstrated ability to reach diverse communities
• Practical and interactive learning tools
• Strong bilingual service capacity
• Clear delivery plan for virtual and in-person activities
• Strong understanding of sellers’ and buyers’ needs
• Secure information management systems
• Realistic timeline and budget
• Clear feedback and evaluation process

Common Mistakes to Avoid

Applicants should avoid vague or generic proposals.

Common mistakes include:

• Failing to show direct experience in succession planning
• Providing weak evidence of national reach
• Not explaining bilingual service delivery
• Ignoring the needs of both buyers and sellers
• Omitting the interactive map or roadmap components
• Providing limited detail on in-person events
• Failing to address confidential information management
• Not showing how diverse communities will be reached
• Submitting an unrealistic timeline
• Failing to demonstrate completion by March 31, 2028

FAQ

What is the Business Succession Planning call for proposals?

It is an ISED funding opportunity to develop resources and supports that help Canadian small businesses and entrepreneurs navigate business ownership transitions.

How much funding is available?

The selected recipient may receive a non-repayable contribution of up to $3 million.

When does the funding begin?

Funding is allocated over two years, starting in 2026–27.

Who can apply?

Eligible applicants include Canadian incorporated not-for-profit organizations, associations, social enterprises, co-operatives, academic institutions, research institutes, business support organizations, innovation hubs, Indigenous not-for-profits, accelerators, and incubators.

Are consortium applications allowed?

Yes. Partnerships and consortium applications are permitted, but an eligible not-for-profit organization must lead consortium applications.

What activities will the selected recipient deliver?

The recipient will develop learning resources, training tools, virtual sessions, four in-person regional events, an online interactive map, and buyer and seller roadmaps.

When must the project be completed?

The project must be completed by March 31, 2028.

Conclusion

The Business Succession Planning call for proposals supports a national effort to help Canadian small businesses and entrepreneurs manage ownership transitions more effectively. With up to $3 million in non-repayable funding available to one selected recipient, the initiative will create bilingual tools, training, roadmaps, events, and resource mapping for business sellers and buyers.

Strong applications will demonstrate practical succession planning experience, national reach, bilingual delivery capacity, secure information management, and a clear plan to complete the project by March 31, 2028. The core goal is to improve business continuity, support entrepreneurs, and strengthen Canada’s small business ecosystem.

For more information, visit Government of Canada.