Canada Takes New Steps to Help Small Businesses Access Federal Contracts
Latest news on WhatsApp أجدد الأخبار على واتساب
The Canadian government has announced new steps to make it easier for small businesses to compete for federal contracts, as part of a broader effort to modernize government procurement and support the “Buy Canadian” policy.
According to Public Services and Procurement Canada, the first measures under the new Small Business Procurement Program are designed to reduce administrative barriers, simplify the bidding process and give smaller suppliers a fairer chance to participate in federal contracting. The department says the changes aim to help Canadian small businesses play a larger role in delivering government priorities while supporting jobs, innovation and local supply chains.
For many small businesses, federal procurement has often been difficult to navigate. Complex technical requirements, repeated paperwork, long bidding documents and limited resources have made it harder for smaller firms to compete with large companies that already have dedicated teams for government tenders.
The first phase of the new measures begins in the summer of 2026. It includes requiring federal buyers to design some procurement processes with small businesses in mind, so that requirements are proportionate to the size and nature of the opportunity. The government also plans to improve digital tools, including the Procura chatbot, to provide clearer information to suppliers about available opportunities and contract requirements.
By the end of 2026, the government says it will introduce additional steps, including plain-language tender summaries, a “submit once” approach that allows businesses to reuse some documents and information across multiple bids, and tools to help suppliers check whether their submissions are complete before filing. The goal is to reduce the risk of businesses being disqualified for avoidable administrative errors.
The program is also linked to Innovative Solutions Canada, which will receive $79.9 million over five years to support Canadian innovators. Through this stream, companies can develop, test and commercialize new technologies by working with the federal government as an early customer.
The measures form part of the government’s broader Buy Canadian approach, which gives greater priority to Canadian suppliers, content and materials in federal purchasing wherever possible. The new small business procurement program is built around four main goals: improving small business competitiveness, modernizing digital tools, reducing administrative barriers and recognizing trusted suppliers.
Government figures show that Canada awarded $66.9 billion in federal contracts for goods, services and construction in 2024–2025, including $55.6 billion through Public Services and Procurement Canada. While small and medium-sized businesses represent 47.2% of private-sector GDP and employ 63.6% of private-sector workers, they currently receive only about 20% to 30% of the department’s contract value.
The government says making federal procurement easier for small businesses is not only about helping business owners. It is also about increasing competition, strengthening local supply chains and creating jobs in communities across Canada. The changes may also open the door for more participation from suppliers that have previously struggled to access the federal procurement system.
