February 8th, 2016
**UPDATE**
Click here for new details on the CanExport Funding Program
Exports accounted for roughly 29.7% of overall Canadian economic output in 2014. Oil tops this list, followed by wood, cereals, and precious gems. But now it’s 2016, and the Canadian government is hoping to add even more contributors to this list, increasing the competitiveness of various Canadian companies.
That’s why minister Chrystia Freeland announced the CanExport program on January 5th, 2016. CanExport provides up to $50 million in Canadian government funding over five years in direct financial support for Canadian SMEs that are looking to embrace a wide range of export marketing activities, especially in high-growth priority markets and sectors.
Eligible applicants
This funding initiative accepts applications from for-profit companies that are incorporated legal entities or a limited liability partnership (LLP) looking to increase their global exporting presence.
CanExport accepts applicants from virtually every sector, with the exception of agriculture and processed food, fish and seafood, beer, wine, and spirits. All of these companies are encouraged to apply to Agriculture and Agri-Food Canada’s AgriMarketing program instead.
These companies can have no less than $200,000 and no more than $50 million in annual revenue declared in Canada. They need at least one full-time equivalent employee, but are ineligible if they have more than 250 full-time employees. All applicants must have a Canada Revenue Agency (CRA) business identifier number.
Eligible activities
All CanExport activities should encourage and develop international business initiatives. These must represent a fresh foray beyond what the applicant currently does, evidenced through expanded or new initiatives that show promise for success.
This might include business travel, market research, adapting marketing tools to new markets, participating in trades fairs, or paying legal fees linked with a distribution or representation agreement.
Activities are ineligible if they present more of the same activities that a company already does. This includes the same business activities, or the same markets within which they already export.
Available funding
CanExport reimburses up to half of all eligible expenses, providing that the applicant matches this government funding on a one-to-one basis.
There is a minimum contribution of $10,000: so, all projects and eligible activities should cover at least $20,000. The maximum contribution is $99,999, so once more, all costs should be doubled and reach at least $199,998.
All eligible costs break down into three categories: travel costs, contractor fees, and consultant fees. CanExport assesses applicants based on these categories.
Travel costs include reasonable, direct flight economy class airfare flights that are booked in advance to help save on expenses. Any alternative transportation method should not exceed the cost of direct airfare. It also helps cover visa fees for up to two employees of the firm to travel in an eligible target market.
Generally speaking, daily per diem amounts are set at $400 for meals, accommodation, and incidental costs, and CanExport provides half of this amount. Save your receipts!
Contractor fees include event registration fees, such as trade show floor rental, shipping and handling costs for bringing in sales material, prototypes, or samples, and other related registration costs. It also covers interpretation costs, translation costs, design, editing, adapting, and printing for marketing materials for various markets, and legal fees for introducing new products or services into the target markets.
Consultant fees include those who gather information and analysis regarding a specific target market related to their products or services in this market, or organizing business-to-business meeting programs and matchmaking. CanExport caps reimbursement fees at 25% of eligible project costs.
Get in touch with INAC Services, North America’s oldest grant-writing firm, if you require any assistance learning more about Canadian government funding through the CanExport program or if you want to determine your organization’s eligibility. CanExport has a 25-working day turnaround for applications, so successful applicants can get started on their latest project as soon as possible. The market won’t wait for you—seize the day!
