Public Services and Procurement Canada launches new Small Business Procurement Program measures to modernize federal contracting and boost access for Canadian businesses

Reducing barriers, simplifying processes and increasing access to opportunities under the Buy Canadian Policy

TORONTO, July 6, 2026 /CNW/ - Small businesses are the backbone of Canada's economy, driving innovation, creating good jobs, and strengthening communities across the country. That's why the Government of Canada is taking concrete steps to ensure they have better access to federal opportunities.

Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, and the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced a new set of targeted simplification measures that respond directly to concerns raised by small businesses about the complexity, cost and time required to participate in federal procurement.

In launching the first series of measures under the new Small Business Procurement Program (SBPP), the Government of Canada will work to remove long-standing barriers that have made federal contracting difficult for smaller firms, and to ensure they are better positioned to compete for and win government work. These changes will modernize procurement processes, improve access to opportunities for small businesses, and ensure they can play a stronger role in delivering federal priorities while supporting jobs, innovation, and a more resilient Canadian economy.

In concert with the SBBP, Innovation, Science and Economic Development (ISED) will leverage the Innovative Solutions Canada (ISC) program, which will help connect federal departments to Canadian firms to develop, test and commercialize their innovative technologies.

The ISC program will create an innovation pathway into federal procurement to support innovation-focused procurement opportunities for Canadian small businesses and help the government meet its operational needs.  Bolstered by $79.9 million funding over five years, the ISC will help Canadian innovators develop, test and validate new technologies by providing opportunities to work directly with the federal government as a first customer. It will also expand support for Canadian small businesses to participate in federal procurement, making it easier for them to secure contracts, demonstrate their products at scale and build the track record needed to access new domestic and international markets.

Measures announced today respond to feedback from small businesses seeking to work with the Federal Government, and are designed to remove barriers and create a more accessible, predictable, and efficient procurement experience.

Building on PSPC's procurement modernization initiatives that have been introduced since 2017, the SBPP and ISC programs will reduce complexity, shorten bid preparation times, and improve the ability of Canadian small businesses to compete successfully for federal contracts, and support the Government's Buy Canadian Policy.

By giving more Canadian small businesses a fair shot at federal contracts, these measures will help unlock growth and create good jobs across the country. They will strengthen Canada's industrial base by building more resilient domestic supply chains and ensuring that government purchasing power is working harder to support Canadian businesses and communities. At a time when Canada is focused on building a stronger economy, these measures will help more entrepreneurs turn opportunity into growth and success.

Quotes

"Small businesses are central to Canada's economy, and today's 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."

The Honourable Joël Lightbound
Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant

 "Canadian small businesses are the engine of our economy, creating good-paying jobs and supporting critical industries across the country. By expanding Buy Canadian measures and investing through Innovative Solutions Canada, we are helping Canadian SMEs compete for federal contracts, create good-paying jobs, and grow here at home. As we build a stronger, more resilient economy, we are ensuring taxpayer dollars are invested strategically to support Canadian workers, businesses, and industries."

The Honourable Mélanie Joly
Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"The launch of the Small Business Procurement Program is an important step for Canadian entrepreneurs and small businesses. By reducing barriers and making it easier to compete for federal contracts, these new measures will help more businesses access opportunities to grow, create good jobs, and strengthen their communities. At the same time, they will help build stronger domestic supply chains and ensure more federal procurement supports Canadian businesses and Canadian workers." 

The Honourable Rechie Valdez 
Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism) 

Quick facts

• The Prime Minister announced the Buy Canadian Policy in September 2025 to protect and strengthen Canadian industries
• The Government of Canada began implementing the Buy Canadian Policy in December 2025 to prioritize Canadian suppliers, materials and content in federal procurement.
• The federal government purchases more than $37 billion in goods, services and construction each year. As of June 2, 2026, just a couple of months after its implementation, the Buy Canadian policy has already applied to a portfolio of solicitations valued at over $3 billion with $721 million worth of contracts awarded to date.
• Small and medium-sized businesses represent about 47.2% of private-sector Gross Domestic Product (GDP) and employ 63.6% of the private-sector workforce. The Small Business Procurement Program aims to increase their participation in federal procurement and make it easier to navigate the federal procurement system.
• The Procura AI Chatbot was launched in April 2026 to help suppliers locate general information about the procurement process and how to do business with the Government of Canada. Today's launch of the enhanced chatbot provides a larger information database while simplifying access to basic procurement information.
• Budget 2025 announced $9.4 million over five years, starting in 2026-27, and $2 million ongoing, for Public Services and Procurement Canada to develop and continuously improve the digital tools that will support the implementation of the Small Business Procurement Program under the Buy Canadian Procurement Policy Framework.
• Budget 2025 also announced $79.9 million over five years, starting in 2026-27, for Innovation, Science and Economic Development Canada (ISED) to position Innovative Solutions Canada (ISC) to support the SBPP by awarding pilot contracts to small businesses, including for emerging technologies, and awarding scaled procurement contracts for successful innovations through the program's existing processes, including its Pathway to Commercialization.
• ISC is an existing government-wide innovation program led by ISED that connects federal departments and agencies with Canadian companies, including small and medium sized enterprises, and their innovative technologies. ISC supports Buy Canadian objectives by increasing the availability and maturity of Canadian-developed solutions and connecting these innovations with public sector organizations for validation and procurement. 

Related products

Backgrounder: Simplifying federal procurement for Canadian small businesses

Associated links

Buy Canadian Policy
Selling to the Federal Government - Buy Canadian
News Release: Government of Canada implements Buy Canadian Policy to strengthen Canada's economy and support homegrown industries
Buy Canadian - Backgrounder
Spring Economic Update 2026

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SOURCE Public Services and Procurement Canada

Contacts: Laurent de Casanove, Director of Communications, Office of the Honourable Joël Lightbound, [email protected]; Media Relations, Public Services and Procurement Canada, 819-420-5501, [email protected]