The program nitty gritty
Column
Get up to $ 99,999 in funding for international travel Bonny Koabel
CanExport program helps mid-sized companies develop their export markets
If your company is looking to export , the federal government ’ s CanExport program is now open and able to assist you . To qualify , your company must fall under one of the following categories :
• Communications ICT and mobile apps
• Digital media
• Educational services
• Firmware and electronics
• Information services
• Manufacturing
• Micro / nano technology
• Services – professional / scientific / technical
• Software design / development
• Transportation and warehousing
• Wholesale and retail trade
The CanExport program was introduced in January 2016 and will provide up to $ 50 million over five years in direct financial support to small- and medium-sized companies . CanExport is expected to assist up to 1,000 exporters per year across the country , for an average of about $ 10,000 per company .
Companies may apply as many times as they wish during the year . The company must , however , wait for one application to be processed before submitting another . If you are denied once , you may apply again and be accepted . Each application is processed separately , and previous denials do not affect future application approvals .
The program nitty gritty
CanExport provides financial support for a wide range of export marketing and sales activities . Qualifying travel activities include :
• Business travel to visit prospects
• Participating in trade shows outside of Canada
• Market research
• Adapting marketing tools for new markets
• Legal fees associated with a distribution or representation agreement
The following are not eligible expenses :
• Ongoing core or operational activities
• Activities in a market where you have been exporting within the last 24 months
• Activities involving used equipment , unless the equipment is reconditioned or rebuilt , and the benefit to Canada would be close to or equal to benefits obtained from the sale of new equipment
The program offers the following reimbursements :
• Reimburses up to 50 % of eligible expenses
• Companies must match funds on a dollar-to-dollar basis
• Provides a minimum contribution of $ 10,000 ( the total cost of eligible activities must be at least $ 20,000 ) and a maximum of $ 99,999 ( the total cost of eligible activities must be at least $ 199,998 );
Companies can file for funding at any time . Once you have filed you can expect to hear if your application has been approved within 25 business days . CanExport will notify companies whether or not their application is successful .
To be considered for funding , a company must meet the following basic criteria :
• Must be a for-profit company
• Must be an incorporated company or a limited liability partnership ( LLP ). Sole proprietorships are not eligible .
• Must have a Canada Revenue Agency ( CRA ) business identifier number
• Must have between one and 250 full time employees . All employees must be on payroll and receiving T4 slips at the end of the year . Subcontracted employees are not included in the employee count .
• Must have sales of between $ 200,000 and $ 50 million in annual revenue declared in Canada in their last complete fiscal year .
There are limits on funding , though , such as the following :
• Companies can apply for a minimum of $ 10,000 per application ( total cost of eligible activities be at least $ 20,000 ) and a maximum of $ 99,999 ( which requires that the total cost of eligible activities be at least $ 199,998 );
• Consultant costs for the production of a market study , for market research , for business-to-business ( B2B ) meetings and matchmaking are limited to 25 % of the total cost of the activity or project .
If your CanExport application is approved , you must first spend the money and submit all travel receipts to the government . Once the government has received proof of payment of the travel expenses a refund cheque will be issued .
Additional information on the CanExport Program along with the online application can be found at : http :// international . gc . ca / canexport / index . aspx ? lang = eng
Bonny Koabel CPA , CGA is President of AKR Consulting Canada a Mississauga , ON firm specializing in Government Grants , Subsidies , Tax Credits , Refunds and Rebates since 2003 .
40 | September 2018 | GRAPHIC ARTS MAGAZINE graphicartsmag . com