Although Canadian exports surpassed $521 million in 2016, it was the second straight year of decline. Since peaking in 2014, fewer products are being produced in Canada and sold internationally. This has raised the attention of the Canadian federal government, who’ve begun developing new programs in support of increasing international business opportunities.
CanExport is one of the most common export grants available to help Canadian businesses expand internationally. It reduces the cost of performing marketing activities (such as trade show participation and marketing material translation) in foreign markets where less than 10% or $20,000 of total international sales have been earned in the last 24 months.
CanExport grants provide up to 25-50% of eligible project expenses to a maximum $50,000 per application. Budgets should be a minimum of $20,000 to meet program requirements.
CanExport Canadian Government Funding for Export Expansion
CanExport is a Canadian government grant designed to share the cost (and therefore risk) of international business expansion efforts. The program was created to offset up to 50% of the costs of attending foreign trade shows with the purpose of making new contacts and building the business.
CanExport funding can be used to offset marketing costs performed in markets where less than 10% or $20,000 of total international sales have been earned in the last 24 months.
To develop a competitive case for receiving CanExport funding, businesses must indicate why the export market shows potential, and how individual trade events are expected to generate new business. It can be helpful to define a goal for number of new contacts, or increased export revenues.
Related Post: CanExport Funding Awarded to 500+ Businesses in 2016
CanExport Program Eligibility Requirements
CanExport provides up to 25-50% of eligible project expenses to a maximum contribution of $50,000 in Canadian government funding. Eligible applicants must:
- Be federally incorporated or a limited liability partnership (LLP);
- Have between 1 – 250 full time employees;
- Generate annual revenue between $200,000 to $50,000,000;
- Be financially stable;
- Provide proof that the market’s sales revenue is less than 10% or $20,000 of total international sales in the last 24 months; and
- Not have another CanExport application without pending costs or events.
Eligible Projects
Trade show grants provided through CanExport will assist businesses travel to export markets and gain brand exposure through trade events. Eligible projects must request at least $10,000, and focus on:
- Participation at international trade shows and industry events;
- Completing foreign market research; and
- Developing marketing materials for international customers.
How to Apply for CanExport Canadian Government Grants
Applying for CanExport funding requires the identification of specific international trade shows where a business would like to participate. All trade events must be in the future, since Canadian government grants typically do not provide retroactive funding for expenses already incurred.
Interested businesses should submit CanExport application documents (approximately 10-15 pages) 4-6 weeks ahead of their trade show to simplify the process and ensure the event can be included for funding.
Contact Mentor Works to determine whether your project qualifies for CanExport funding. We can also provide comprehensive application support to accelerate funding submission.