Ottawa expands federal procurement access for Canadian small businesses

The federal government has launched the first measures under its Small Business Procurement Program, aiming to make it easier for Canadian small and medium-sized businesses to compete for federal contracts.

Announced August 13 in Kitchener, Ont., the measures are intended to simplify procurement processes, reduce barriers to federal contracting and improve access to government purchasing opportunities.

For Canadian manufacturers, including smaller wood products, millwork, cabinetry and related suppliers, the program could broaden access to federal contracts for goods, services and construction.

The federal government purchases more than $37 billion in goods, services and construction annually. As of June 25, 2026, the Buy Canadian Policy had been applied to solicitations valued at more than $3 billion, with $726 million in contracts awarded.

“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 Rechie Valdez, Minister of Women and Gender Equality and Secretary of State for Small Business and Tourism.

Small and medium-sized enterprises account for about 47.2% of Canada’s private-sector GDP and employ 63.6% of the private-sector workforce, according to the federal government.

The government is also investing $79.9 million over five years through Innovation, Science and Economic Development Canada’s Innovative Solutions Canada program. The funding will support small businesses developing, testing and demonstrating innovative products and technologies, including through federal procurement opportunities.

Under the initiative, Innovative Solutions Canada will be able to award pilot contracts to small businesses, including those developing emerging technologies, and scale procurement contracts for successful innovations through existing commercialization programs.

Public Services and Procurement Canada is also receiving $9.4 million over five years beginning in 2026-27, plus $2 million annually on an ongoing basis, to develop and improve digital tools supporting the Small Business Procurement Program.

One of those tools is the Procura Chatbot, launched in April 2026 to help suppliers find information about federal procurement and doing business with the Government of Canada. The government says the system has since been expanded with a larger information database and simplified access to procurement guidance.

The measures form part of the federal Buy Canadian Procurement Policy Framework, which is intended to increase opportunities for Canadian suppliers within federal purchasing.