What is CanExport SME?
CanExport SME is a federal grant programme administered by the Trade Commissioner Service (TCS) under Global Affairs Canada. It provides non-repayable contributions — meaning you don't pay it back — to help Canadian small and medium-sized businesses develop new international markets.
The programme covers up to 50% of eligible expenses, to a maximum of C$50,000 per application. You can apply multiple times, but not for the same market or activity twice.
Important distinction
CanExport SME is for market development — finding and developing new international customers. It is not for production costs, product development, or domestic market activities. Every eligible expense must be directly tied to entering or expanding in a specific international market.
Who is eligible?
To qualify for CanExport SME your business must meet all of these criteria:
- Registered in Canada — incorporated federally or provincially, or a registered sole proprietorship or partnership
- Annual revenue between C$100,000 and C$100 million — in the most recently completed fiscal year
- Fewer than 500 full-time employees
- Targeting a new international market — a country or region where you have less than C$100,000 in current annual sales
- Canadian content — your product or service must be substantially Canadian in origin
Not eligible
Crown corporations, federal agencies, provincial governments, non-profits, and businesses primarily in retail, real estate, or financial services are generally not eligible. If you're unsure, contact your regional TCS office before applying.
What expenses are eligible?
✓ Eligible expenses
- International travel for market development
- Trade show registration and booth fees
- Market research and feasibility studies
- Translation and localization costs
- Legal fees for international contracts
- Certification and regulatory compliance costs
- Hiring a consultant for market entry strategy
- Business development trips and meetings
- Digital marketing targeting the specific market
- Intellectual property protection abroad
✗ Not eligible
- Product development or R&D costs
- Domestic marketing or sales activities
- Salaries for permanent staff
- Capital equipment purchases
- Activities in markets where you already have C$100K+ in sales
- Expenses already covered by another government programme
- Activities that have already occurred before approval
- General overhead or administrative costs
Practical tip
The 50/50 cost-sharing requirement means for every dollar you spend, the programme covers 50 cents. Budget your activities accordingly — if you're planning C$40,000 in eligible activities, you'll receive C$20,000 from CanExport SME and cover C$20,000 yourself.
How to apply — step by step
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01
Contact your regional TCS office first
Before filling out the application, call or email the Trade Commissioner Service office nearest you. A trade commissioner can confirm your eligibility, advise on which activities are most likely to be funded, and flag any issues with your proposed market. This 30-minute conversation can save you hours of application work. Find your nearest office at
tradecommissioner.gc.ca.
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02
Register on the TCS portal
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03
Identify your target market clearly
CanExport SME funds activities in a specific international market. Your application must name the country or region and explain why you're targeting it. Vague answers like "Asia" are rejected — "Japan, specifically the manufacturing sector in the Kansai region" is the level of specificity needed.
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04
Complete the application form
The application asks for: company overview, product/service description, target market rationale, proposed activities and timeline, budget breakdown, and expected outcomes. Budget 2-4 hours for a complete application. The strongest applications are specific about activities, realistic about timelines, and clear about how the funding will generate international sales.
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05
Submit and wait for review
Review typically takes 6-8 weeks. Do not begin any funded activities before receiving written approval — expenses incurred before approval are not eligible for reimbursement.
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06
Execute activities and submit claims
Once approved, execute your plan and keep all receipts. Claims are submitted on a reimbursement basis with supporting documentation. The programme will reimburse 50% of eligible expenses up to your approved amount.
What makes a strong application?
Be specific about the market
Name the country, the sector, and ideally the type of buyer you're targeting. "We are targeting Japan's automotive Tier-1 suppliers in the Nagoya and Toyota City cluster, who are actively seeking Canadian precision-machined components for EV platform changeover" is far stronger than "We want to export to Japan."
Show market research has already been done
Applications that demonstrate you understand the target market — buyer landscape, competitive environment, regulatory requirements, and Canadian advantages — score significantly higher than speculative applications.
Connect activities directly to sales outcomes
Every proposed activity should have a clear line to a potential sale. "Attend Hannover Messe to meet 12 pre-identified German industrial buyers" is fundable. "Attend trade shows to raise brand awareness" is not.
Use TCS introductions in your plan
If your application references a TCS in-market introduction (e.g., "TCS Tokyo has agreed to facilitate introductions to three JERA procurement contacts"), it demonstrates credibility and increases approval likelihood. Ask your trade commissioner about in-market support before applying.
Common rejection reasons
Applications are most commonly rejected for: targeting a market where you already have significant sales, vague activity descriptions, expenses that are ineligible, and applying for activities that have already been completed. Have your trade commissioner review a draft before submitting.
Related programmes to know
CanExport SME is one of several federal programmes supporting Canadian business development internationally. You cannot stack CanExport SME with other federal programmes for the same expense, but you can use different programmes for different activities:
- CanExport Community — for industry associations and trade organizations supporting members' export activities
- CanExport Agri-Food — specifically for agricultural and food exporters, higher funding ceilings
- EDC Export Guarantee Programme — working capital financing to fulfill export contracts
- NRC IRAP — for technology companies, R&D with international commercial application
- ISED Strategic Innovation Fund — for large-scale projects with significant Canadian industrial impact
See our guide to ISED programmes and EDC financing options for more detail.
Official resources
This guide is for informational purposes only. Programme terms, eligibility criteria, and deadlines change — always verify current details at the official programme page before applying.