CanExport SMEs rule changes for 2026-27

CanExport SMEs is the federal program that shares the cost of entering new international markets. Successful projects can receive up to $50,000 for international business development. Applications are assessed on a rolling, competitive basis and funding is limited. The 2026-27 intake brought several rule changes that affect which startups qualify and how to plan a project.

Higher minimum eligibility

The minimum size requirement rose to 3 full-time employees and $300,000 in annual revenue. The previous minimum was 1 full-time equivalent and $100,000. The Trade Commissioner Service says the change targets companies with the capacity to succeed abroad. Very early startups should plan for this threshold before they apply.

US or non-US markets, not both

The program now supports Canada's Trade Diversification Strategy, which aims to double non-US exports over the next decade. A project may target the US or other international markets, but not both. The government says about $31 million is available in 2026-27, of which about $3.1 million supports projects targeting the US.

Sub-market segmentation has been removed for Brazil, China, India and the US. Each now counts as one market toward the maximum of five per project. Eligibility is assessed for the country as a whole based on previous sales.

The US allocation is about 10% of the total budget. A US-only project therefore competes for a much smaller pool than a project aimed at Europe or Asia. Founders whose first export market is the US should weigh this when deciding whether to apply in this intake or to build sales there first.

Processing times

The program aims to decide within 60 business days of submission. For US-targeted applications outside defence, the target is 90 business days. Build these timelines into your plan for trade shows or market visits.

More weight on defence and dual-use

In line with the federal Defence Industrial Strategy, the program places greater emphasis on defence projects. Applicants targeting the defence market are asked to include "Defence" in the project title, and these projects are processed within 60 business days.

Changes to eligible expenses

• The travel per diem rose to $600 per eligible traveller, from $400.
• Fuel, parking and tolls for personal or company vehicles are now eligible.
• Costs to create contractual agreements are now eligible.

Primary agriculture, agri-food and fish and seafood moved to the AgriMarketing Program. AgTech, post-harvest food technology, agricultural machinery and life sciences remain eligible under CanExport.

Planning an export project

A strong application ties every expense to a specific market and a specific outcome, such as distributor meetings or a pilot customer. Choose markets where you have little or no prior sales, since the program supports entry into new markets. If you plan both US and overseas expansion, you will need separate projects.

Founder takeaways

• Check the program page for intake status. Funding is limited and the program opens and closes on its own schedule.
• Confirm you meet the new minimums. Count full-time employees and annual revenue as the program defines them.
• Pick a lane. Decide between a US project and a non-US project for this intake.
• Talk to a trade commissioner first. The Trade Commissioner Service can help you choose markets and prepare.

PacTech's Going Global module covers market selection and export planning, including how to sequence CanExport with other support.

This article is general information, not legal or financial advice. Speak with a qualified Canadian lawyer or accountant about your situation.

General information. This article is general information, not legal, tax or financial advice. Confirm the details with a qualified professional before you act.

Sources

1. CanExport SMEs
   Trade Commissioner Service, Government of Canada
2. What's new for 2026-27: CanExport SMEs program
   Trade Commissioner Service, Government of Canada