Selling abroad for the first time: funding and help for your first export market

Yes, there is funding to help a Canadian small business sell in a new country for the first time. The best-known federal program is CanExport SMEs, which shares the cost of activities like trade shows and market research in a new market; agri-food businesses can also look at AgriMarketing. The key is to plan your market first and apply before you spend, because these programs rarely pay for costs you've already paid.

What does export funding usually pay for?

Export market programs help with the cost of getting into a market, not the cost of running your business. Depending on the program, that can include:

• Travel to meet buyers, distributors or partners
• Trade shows and trade missions
• Market research and studies of a specific country or region
• Adapting marketing materials, packaging or a website for a new market
• Legal or tax advice about selling in that country
• Certifications or registrations the new market requires

Each program has its own list of eligible costs, and each sets its own share of what it pays. Check the program page before you build a budget around it.

Which programs should I look at?

CanExport SMEs

CanExport SMEs is a federal program for small and medium-sized businesses (SMEs) that want to develop new international markets. It is cost-shared: the program pays part of your eligible costs and you pay the rest. It has eligibility rules about business size and revenue, and it opens and closes in intakes, so check the program page for whether it is taking applications now.

AgriMarketing market diversification

If you're a small or medium-sized agriculture or agri-food business, AgriMarketing market diversification for SMEs helps businesses expand into new markets. Like CanExport, it shares costs rather than paying for everything. Check the program page for who qualifies and what it covers.

Free trade advice

Not all help is money. The federal Trade Commissioner Service offers advice to Canadian businesses about foreign markets, and many provinces and local business centres run export programs and workshops. That advice can be worth as much as a grant when you're picking your first market.

You can browse more on export programs and see what fits your business with the funding check.

Do I need an export plan?

Almost always, yes, even when a program doesn't ask for one by name. Funders want to see that you've thought about where you're going and why. A simple export plan answers:

1. Which market? One country or region, not "the world". Why that one?
2. Who buys there? Your target customers, and any buyers or distributors you've already talked to.
3. What changes? Product, labelling, pricing, shipping or certification needed for that market.
4. What activities? The trade show, trip or study you want funded, and when.
5. What will it cost? A realistic budget, with quotes where you can get them. Our guide to building a grant project budget walks through this.
6. How will you measure it? Meetings held, leads found, first orders.

A focused plan for one market is easier to fund, and easier to carry out, than a vague plan for several.

Why must I apply before I spend?

Most export programs only pay for costs you take on after your application is approved. If you book a booth at a trade show, then apply, that booth may not count. Costs paid before approval are called retroactive costs, and most programs don't cover them.

So build your timeline backwards:

• Find the event or trip date.
• Leave room for the program to review your application. Check the program page for how long that takes.
• Apply well before you need to book or pay.

Our post on why you should apply before you spend explains this rule and the few exceptions.

Can I combine export funding with other help?

Sometimes. Programs often limit how much total government funding one project can receive. These rules are called stacking. If you're also using a provincial export program or a loan, list it in your application and read our post on combining grants.

A loan can also help cover the part of the costs a grant doesn't. Our post on grants, loans and tax credits explains how they differ.

What happens after I'm approved?

You'll usually sign an agreement that sets out what you'll do, what's covered and how you'll be paid. Most cost-shared programs pay you back after you spend, through a claim with receipts. So you'll need cash to pay for the activity first.

Keep every invoice, boarding pass and receipt, and track results as you go. Our posts on what happens after you apply and getting paid: claims and reports cover the rest. For the wider picture, see our guide to small business funding in Canada.

Frequently asked questions

Do I already need export sales to get export funding?

Not always. Some programs are aimed at businesses entering their first new market; others look for some experience. Check the program page for its rules about past sales and revenue.

Is CanExport SMEs open right now?

It opens and closes by intake. Check the CanExport SMEs program page on this site for its current status, or watch closing soon.

Does export funding cover my staff's wages?

Usually not for normal salaries; export programs focus on market entry costs. Check each program's list of eligible costs. For hiring help, see our guide to wage subsidies and hiring programs.

Can I apply for more than one market at once?

Some programs allow it, but a focused application for one market is usually stronger. Check the program page, and see our tips on how to write a grant application.