The federal government is rolling out new measures aimed at making it easier for Canadian small businesses to compete for government contracts, while directing additional funding toward programs that help companies develop and commercialize innovative products.
The first measures under the new Small Business Procurement Program were highlighted recently by Rechie Valdez, minister of women and gender equality and secretary of state (small business and tourism), on behalf of the ministers responsible for government transformation, public works and procurement, and industry.
The measures are intended to simplify federal procurement, help small businesses navigate the contracting process and expand their access to government purchasing opportunities.
Procurement changes
The federal government purchases more than $37 billion in goods, services and construction each year, according to the government.
The new program is also intended to increase the participation of small and medium-sized enterprises in federal procurement. SMEs account for about 47.2 per cent of private-sector gross domestic product and employ 63.6 per cent of the private-sector workforce, the government said.
As part of the broader effort, the Procura Chatbot, launched in April, has been enhanced to draw on a larger information database and provide simpler access to basic information about the federal procurement process and doing business with the government.
"Small businesses are central to Canada's economy, and the launch of the first measures under the Buy Canadian Small Business Procurement Program is a real turning point. We are simplifying procurement, reducing barriers and expanding access so more Canadian firms can compete for and deliver federal contracts. This is about using government purchasing power to actively support Canadian growth and Canadian jobs," said Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant.
The government said the Buy Canadian Policy had, as of June 25, applied to a portfolio of solicitations valued at more than $3 billion, with $726 million in contracts awarded to that point.
Funding for innovation
The federal government is also committing $79.9 million over five years, beginning in 2026-27, to Innovation, Science and Economic Development Canada through its Innovative Solutions Canada program.
The funding is intended to support small businesses developing, testing and demonstrating innovative products and technologies. It will include pilot contracts for small businesses and scaled procurement contracts for successful innovations through existing program processes, including its Pathway to Commercialization.
Budget 2025 also allocated $9.4 million over five years, starting in 2026-27, and $2 million in ongoing funding for Public Services and Procurement Canada to develop and continually improve digital tools supporting implementation of the Small Business Procurement Program under the Buy Canadian Procurement Policy Framework.
Innovative Solutions Canada is an existing government-wide program led by ISED that connects federal departments and agencies with Canadian companies, including SMEs, and their technologies. The program supports the government's Buy Canadian objectives by helping increase the availability and maturity of Canadian-developed solutions and connecting those products with public-sector organizations for validation and procurement.
Government's stated objective
The measures are intended to give more Canadian businesses an opportunity to compete for federal contracts and expand their operations, while using government purchasing to support businesses and communities.
Valdez said the program is also intended to make the federal procurement system easier for entrepreneurs to navigate.
"Canada's small businesses are strengthening our communities and our economy every day, and we're taking steps so that more of them can benefit from the opportunities created by federal procurement. The Small Business Procurement Program will help Canadian entrepreneurs navigate the federal procurement process and access government contracts, creating more opportunities for businesses to grow and succeed as we build a stronger, more resilient Canadian economy," said Valdez.