The Canadian federal government is streamlining its 'Buy Canadian' procurement process to make it easier for small and medium-sized businesses to compete in federal contracts.

Minister Joël Lightbound announced three key changes: simplifying the Small Business Procurement Program requirements, improving online user experience with digital tools like chatbots, and standardizing procurement documents.These measures aim to reduce bureaucratic complexity and help businesses navigate government systems more efficiently.The policy, launched in December 2025, was designed to strengthen domestic supply chains amid U.S.trade tensions.Lightbound emphasized that the main barriers for small businesses are not market competition but excessive paperwork and outdated systems.

The government plans to invest $80 million over five years in Innovative Solutions Canada (ISC), which funds entrepreneurs to develop prototypes and test innovations.This follows a recent reduction in the procurement threshold from $25 million to $5 million, opening doors for smaller firms.The changes reflect broader efforts to reduce reliance on U.S.trade and boost domestic economic resilience.