Surbiton Insights

BC procurement changes this fall: what bidders should act on

Thu, 29 Oct 2026 00:00:00 GMT

Photo by Indraadityan Logamurugan on Unsplash

Five BC procurement changes took effect or were announced between mid-September and late October. Two are provincial and three are federal. None of them changes how public work is won. Each one, though, affects a fee proposal, a delivery record, or a closing time that may already be in your pipeline.

This post covers what changed, who it affects, and what to do this week. It does not forecast spending, and it does not repeat the bid or no-bid decision.

All five sit alongside the federal Buy Canadian Policy. Under it, Canadian suppliers receive additional points during bid evaluation. Since June 15, 2026, the policy has applied to strategic procurements of $5 million and above, down from $25 million.

BC procurement changes start with the PST pause

On September 18, the Province said it would delay the provincial sales tax (PST) expansion to professional services that was due to start on October 1. It pointed to new and ongoing international trade disruptions. The Province estimates the pause will save people, local governments and businesses about $260 million in 2026-27.

The pause covers six services: accounting, architectural, engineering, geoscience, non-residential real estate, and security. Under the original design, PST on architectural, engineering and geoscience services would have applied to 30% of the purchase price. On September 29, the Province amended Procedure M (Sales Taxes) in its Core Policy and Procedures Manual (CPPM). The amendment removes all six categories as PST-taxable services.

What to do. Pull every open fee proposal and every bid that has been submitted but not yet awarded. Look for a PST line, or a price built on tax applied to 30% of the fee. If the solicitation is still open, correct the price before closing. If it has closed, ask the contracting authority how it wants the change handled.

If you registered for a PST account, the Province's notice says you should cancel it using eTaxBC or by calling 1-877-388-4440. The Province has described this as a delay and a pause, not a repeal. Keep a note of how your pricing would change if the expansion returns. Where tax has already been invoiced or collected, involve your accountant.

Federal delivery performance is now on the record

Public Services and Procurement Canada's (PSPC) Vendor Performance Management (VPM) Policy took effect on September 18. It is published in the CanadaBuys Buyer's Portal. Vendors are assessed in four categories, cost, quality, schedule and management, using a standard scorecard.

According to PSPC's rollout update, VPM clauses go into new PSPC requests for proposals and non-competitive contracts for goods and services above $100,000. This applies where PSPC is also the technical authority. VPM clauses and scorecards are included in solicitation documents, and buyers publish vendor scorecards in SAP Business Network for the vendor to review.

During the launch phase, scores are not used in future bid evaluations. PSPC has committed to notify vendors at least 90 calendar days before that changes. It has also told a parliamentary committee that VPM by itself will not lead to contract termination or vendor ineligibility, and that vendors have a process to object.

What to do. Read the scorecard in any PSPC solicitation before you set your price and schedule. Treat it the way you would read an evaluation grid: it tells you in advance what will be measured. Name one person to review each scorecard when it appears in SAP Business Network. Keep your own delivery records, so you can use the objection process with evidence if a score looks wrong.

The delivery record you build this year may be the one an evaluator reads later.

Bill C-40 and the Defence Investment Agency

On October 6, the federal government tabled Bill C-40. It proposes to establish the Defence Investment Agency (DIA) as a Crown corporation focused on defence procurement, production, and investment. The government says that status would let the DIA negotiate and manage contracts using commercial practices more familiar to industry. It would remain accountable to Parliament through an Associate Minister of National Defence for Procurement.

This is a bill, not law. For BC firms in the defence and marine supply chain, it signals that contract terms may come to look different from standard federal forms.

What to do. Follow the bill through Parliament. Note which of your current or planned pursuits run through the DIA. Do not change your terms or pricing until the legislation passes and the agency publishes how it will contract.

A free federal channel for complaints and disputes

On October 7, the Office of the Procurement Ombud (OPO) released its 2025-26 annual report. It recorded a record 851 procurement-related cases and 16 requests for alternative dispute resolution (ADR). During the year, OPO launched six reviews of complaints about the award and administration of federal contracts and completed four others.

OPO describes its ADR services as a free way to help settle contractual disputes between suppliers and federal departments. Many smaller firms never use the office because they do not know it exists, or they assume a dispute means lawyers from the start.

What to do. Read OPO's site now, before you have a problem, so you know which service fits which situation. Keep correspondence with federal buyers organized by contract. Where your contract rights or significant money are at stake, involve your lawyer alongside any approach to OPO.

Check closing times after November 1

BC stops changing its clocks this weekend. On November 1, 2026, no change will be made where clocks would previously have gone back an hour. Pacific time is set at UTC-7, and the abbreviation PCT replaces PST and PDT.

A missed closing time cannot be fixed with good writing. Solicitations drafted before the change may still say "PST" or "Pacific Standard Time". The gap between BC and any time zone that still changes its clocks will also shift.

What to do. List every solicitation in your pipeline that closes after November 1. Check the time zone each one states. If it is ambiguous, ask the buyer through the formal questions process before the deadline for questions. Check that your calendars and bid-tracking tools show the correct local time. Then plan to submit well before the stated closing.

What to do this week

Review open and pending fee proposals for PST, and cancel any PST registration you opened for these services.
Find the VPM clauses and scorecard in each live PSPC solicitation, and assign someone to review scorecards as they are posted.
Flag any pursuit that may move to the DIA, and track Bill C-40.
Bookmark OPO's services page and organize federal contract correspondence.
Confirm the time zone for every closing date after November 1.

Each item takes less than an hour for a typical pipeline. If you would like a second reader on pricing or scorecards for a live bid, our Public Sector & Bids practice does this work.

Sources

"Buy Canadian - Backgrounder", Public Services and Procurement Canada. https://www.canada.ca/en/public-services-procurement/news/2025/12/buy-canadian.html
"Question Period Notes: Buy Canadian Policy", Public Services and Procurement Canada. https://search.open.canada.ca/qpnotes/record/pwgsc-tpsgc,PSPC-2026-QP-00031
"B.C. pauses PST expansion to professional services amid ongoing trade uncertainty", Office of the Premier, Province of British Columbia. https://news.gov.bc.ca/releases/2026PREM0034-001089
"Notice 2026-001: Notice to providers of professional services", Province of British Columbia. https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/publications/notice-professional-services
"Core Policy & Procedures Manual Amendments", Province of British Columbia. https://www2.gov.bc.ca/gov/content/governments/policies-for-government/core-policy/amendments
"What's new in the Buyer's Portal", CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/whats-new-portal
"Rollout of the Vendor Performance Management Program - Update", CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/news-and-events/vpm-rollout-update
"Frequently asked questions on vendor performance", CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/frequently-asked-questions-vendor-performance-management
"Standing Committee on Government Operations and Estimates: May 5, 2026", Public Services and Procurement Canada. https://www.canada.ca/en/public-services-procurement/corporate/transparency/briefing-materials/standing-committee-government-operations-estimates/2026-05-05.html
"Introduction of legislation to strengthen Canada's Defence Sector", Defence Investment Agency, Government of Canada. https://www.canada.ca/en/defence-investment-agency/news/2026/10/introduction-of-legislation-to-strengthen-canadas-defence-sector.html
"Procurement Ombud Releases 2025-26 Annual Report, Highlighting the Need for Accountability and Results in Federal Procurement", Office of the Procurement Ombud, Government of Canada. https://www.canada.ca/en/procurement-ombudsman/news/2026/10/procurement-ombud-releases-2025-26-annual-report-highlighting-the-need-for-accountability-and-results-in-federal-procurement.html
"The Office of the Procurement Ombud", Office of the Procurement Ombud, Government of Canada. https://opo-boa.gc.ca/index-eng.html
"B.C.'s new time zone (Pacific time)", Province of British Columbia. https://www2.gov.bc.ca/gov/content/governments/celebrating-british-columbia/daylight-saving-time

Market sizing a lender will accept

Tue, 27 Oct 2026 00:00:00 GMT

Photo by Vitaly Gariev on Unsplash

A lender doesn't read the market sizing section of your plan as a story about opportunity. They read it as a list of claims and check the ones that carry the most weight. The heaviest claim is usually the base number: how many people or businesses are in your trade area. If that number is stale or has no source, the rest of the section goes down with it.

That base has moved more than usual this autumn. Three Statistics Canada releases from the past 60 days change what a careful plan should cite, and another arrives in February. This post covers only the demand side. For costs and revenue, see our earlier piece on building a financial model a lender will believe.

What a lender checks in market sizing

A market section that holds up under review does three things. Every number has a source the reader can open. Every source has a date, so the reader knows which version you used. Every step from the source to your revenue line is marked as either data or assumption.

A plan built this way is easy to check. A plan that isn't invites questions you would rather answer before the meeting. The base number gets checked first, because every later line multiplies it.

The population base moved in September

On September 23, 2026, Statistics Canada estimated Canada's population at 41,798,407 as of July 1, 2026. That is up 189,425, or 0.5%, from a year earlier. The same release revised non-permanent resident estimates, and therefore population estimates, back to July 1, 2021. The release explains one reason: newer Immigration, Refugees and Citizenship Canada (IRCC) data held far more permit-extension records than the data behind the preliminary estimates.

In the revised series, British Columbia's population grew 0.1% in the year to July 1, 2026, slower than the country as a whole. Because the revision reaches back to 2021, BC population figures published before September 23 may not match the current series. A plan written this summer should be checked against it line by line, and the direction of growth it assumed should be confirmed.

The revision itself is routine. Statistics Canada updates its demographic estimates every year with the September release for the second quarter. This year's update reached back five years. Make it a habit: refresh any population figure dated before late September.

The mix of the population shifted too. Non-permanent residents fell by 154,614 in 2025/2026, to 2,779,774, or 6.7% of the population. If your demand leans heavily on temporary residents, size that group on its own rather than relying on the total.

Provincial figures can also hide local ones. Use the narrowest geography your trade area allows, and name that geography in the plan.

Business counts give you a citable base

For business-to-business plans, the base is a count of firms, not people. Statistics Canada's Canadian business counts for June 2026 show 1.37 million employer businesses and 3.78 million non-employer businesses with annual revenue over $30,000. The counts are available for each province and territory, for every census metropolitan area (CMA), and for the census subdivisions within them. That means you can cite a count for the municipality you actually serve.

Two cautions apply. First, businesses are usually counted by location, so one firm with several sites can show up more than once. If you sell to head offices, say so and adjust. Second, the counts cover June and December and are released in August and February. Name the reference month in your plan, and expect a newer edition in February 2027.

Counts are a snapshot. Statistics Canada also publishes experimental estimates of business openings and closures, month by month back to January 2015, with detail by CMA. They show churn in your target customer base. A lender will want to see that if your revenue depends on new firms.

A survey that has ended

The Canadian Survey on Business Conditions for the third quarter of 2026, released August 31, was the last edition. Many plans cite it for business sentiment and cost pressures. You can still cite it, but as a dated, finished source, not as a series you will keep updating.

Its final results bear on pricing. Over the previous 12 months, 27.4% of businesses reported passing tariff-related cost increases on to customers, while 37.7% passed on none. In the third quarter, 59.8% expected cost-related obstacles over the next three months, down from 64.3% in the second quarter. If your market size multiplies customers by an average price, these figures are a good prompt to test whether that price still holds.

Build the number from the bottom up

A top-down figure, such as a share of a national industry total, is hard to defend because it says nothing about who will buy. A bottom-up build starts with the customers you can reach and works up from there. The structure we use has five lines:

Base. The number of people or businesses in your trade area, from a named table, with its reference date.
Filters. The share of that base that fits your offer, by industry, size, age or distance. Cite a source for each filter or label it an assumption.
Reach. The share you can contact in the plan period with your channels and staff. This is nearly always an assumption. Say so.
Conversion. The share of contacted customers you expect to buy. Back it with your sales history, pilot results or letters of intent where you have them.
Price and frequency. Average spend per customer per year, checked against current cost pressure.

Write each line as a sentence a lender can test: "June 2026 business counts show [number] employer businesses in [municipality]; we assume [share] fit our service." Assumptions are fine. Unlabelled assumptions are not.

Assumptions are fine. Unlabelled assumptions are not.

Run a sensitivity on the base

The September revision is a reminder that the base itself can move. Show what happens to your market size, and to the revenue line that depends on it, if the base comes in lower than expected. A simple table with low, central and high cases is enough. Explain how you set the range, for example by the gap between the preliminary and revised estimates for your area.

If the plan only works in the high case, the lender will notice. Better that you notice first.

Re-check before the census lands

Statistics Canada reports a 2026 Census response rate of 98.4% nationally. The first results, population and dwelling counts, are scheduled for February 10, 2027, and those counts will become the new benchmark. Statistics Canada plans to release all 2026 Census topics in major releases by December 2027. Development corporations sizing a market at the Nation level should check that release plan for the topics they need.

If you are seeking financing this winter, date-stamp your market size now and note that you will refresh it after February 10. If your application will be assessed after that date, update the base before you submit.

A practical next step

Open your current plan and list every number in the market section. Beside each one, write its source, its reference date, and whether it is data or assumption. Replace any population-based figure dated before September 23, then add the sensitivity table. If you are also thinking about opening a second location, run the same test on that trade area.

Our Growth & Ventures practice works with owners and founders on plans prepared for lenders.

Sources

"Canada's population estimates: Age and gender, 2026", Statistics Canada, The Daily. https://www150.statcan.gc.ca/n1/daily-quotidien/260923/dq260923a-eng.htm
"Canada's population estimates: Age and gender, 2026 (PDF)", Statistics Canada, The Daily. https://www150.statcan.gc.ca/n1/daily-quotidien/260923/dq260923a-eng.pdf
"Canada's population estimates, second quarter 2026", Statistics Canada, The Daily. https://www150.statcan.gc.ca/n1/daily-quotidien/260923/dq260923b-eng.htm
"Canadian business counts, June 2026", Statistics Canada, The Daily. https://www150.statcan.gc.ca/n1/daily-quotidien/260814/dq260814d-eng.htm
"Experimental estimates for business openings and closures for Canada, provinces and territories, census metropolitan areas, seasonally adjusted (Table 33-10-0270-01)", Statistics Canada. https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3310027001
"Canadian Survey on Business Conditions, third quarter 2026", Statistics Canada, The Daily. https://www150.statcan.gc.ca/n1/daily-quotidien/260831/dq260831a-eng.htm
"Statistics Canada thanks Canadians for their exceptional participation in the 2026 Census", Statistics Canada. https://www.statcan.gc.ca/en/about/statistical-announcements/2026-09-14-exceptional-participation-2026-census
"2026 Census dissemination planning: Overview and release plans", Statistics Canada. https://www.statcan.gc.ca/census-release-plans

Repayable contribution or grant: weighing the new tariff support

Sun, 25 Oct 2026 00:00:00 GMT

Photo by Jelly Marketing on Unsplash

If tariffs have cost your British Columbia business sales, you now have two kinds of federal money to consider. One is non-repayable. The other is a repayable contribution. It is interest-free, but it is still a debt your business must repay. Most firms will apply for the non-repayable money first and think about the rest later. We think the choice deserves the same care as any other capital decision.

What changed in August and September

On August 25, 2026, the federal government announced a $7.5 billion package of measures for workers and businesses. It included an additional $1.5 billion for the Regional Tariff Response Initiative (RTRI). The Canadian Federation of Independent Business (CFIB) reports that expanded RTRI applications opened on September 8, 2026, for businesses directly or indirectly affected by trade disruptions. In British Columbia, Pacific Economic Development Canada (PacifiCan) delivers the program.

The main change is the size of the non-repayable portion. The Department of Finance backgrounder says the cap rises from $1 million to $3 million. It now covers demonstrated liquidity needs as well as pivot or capital investment plans. PacifiCan splits that amount into up to $2 million for liquidity and up to $1 million for pivot projects. Repayable support over $1 million is available for larger transformation projects.

To apply in British Columbia, a business must meet several basic tests. It must be incorporated, for-profit, and located and operating in the province. It needs at least $1 million in annual revenue in one or both of its last two fiscal years. It must also have been viable before the tariffs.

What the non-repayable money covers

The liquidity portion is tied to payroll. PacifiCan's applicant guide sets it at 50% of average eligible monthly payroll, for up to 12 months and no later than March 31, 2028. The maximum is $2 million. The RTRI frequently asked questions (FAQ) adds that funding will not go above your demonstrated need or $2 million, whichever is less. It may also be reduced to account for other government assistance.

The pivot portion is a cost share. The FAQ says a non-repayable contribution normally covers up to 50% of total project costs, where the project shows broader economic benefits. You fund the other half.

Because pivot funding is capped at $1 million, the non-repayable route fits projects of about $2 million or less. Beyond that size, the rest of the money has to come from somewhere else. That is where the repayable side comes in.

How a repayable contribution works under RTRI

The repayable side is built for larger projects. The FAQ says a repayable contribution over $1 million for a larger commercial project can cover up to 75% of total project costs. A single business can receive at most $20 million under RTRI, including liquidity support.

RTRI repayable contributions are interest-free. If you are approved, the payment schedule is set out in your contribution agreement. Other PacifiCan programs show what a schedule can look like. Under the Regional Defence Investment Initiative, now closed to applications, repayment normally began one year after the project was finished. It was paid in equal monthly instalments over five years, with no collateral and no penalty for repaying early.

Those are good terms. Interest-free money is still debt. Each instalment comes out of operating cash flow, possibly in years when tariffs are still hurting sales. Before you take the larger cost share, test the repayments against a cautious sales forecast, not your business plan.

You will also need to show where your share of the project costs comes from. On the defence program, PacifiCan did not accept forecast revenues, receivables, commitments of future funding or SR&ED credit receivables as confirmation of funding. Expect a similar standard and confirm your sources early.

Interest-free money is still debt.

Other tariff support for BC businesses

RTRI is not the only tariff support available. The federal government reports more than $25 billion in support so far, plus the $7.5 billion announced in August.

BDC Pivot to Grow. The Business Development Bank of Canada's new liquidity stream lends $250,000 to $5 million. The terms are 0% interest for the first 12 months, interest-only payments over 36 months, and amortization over 96 months. The Department of Finance says the revenue requirement for BDC's direct tariff programs is lowered to $1 million.
PacifiCan's ongoing repayable programs. The Business Scale-up and Productivity stream offers interest-free repayable funding to incorporated businesses. PacifiCan's general rule is that contributions to for-profit organizations or commercial projects may be repayable.
Canada Strong Diversification Fund. The Department of Finance describes this new stream of the Strategic Response Fund as having an additional $2 billion. It supports tariff-affected companies with shovel-ready projects that maintain existing capital, including medium-sized firms.

Each option has a different cost and makes a different claim on future cash. BDC's 0% rate covers only the first 12 months. The capital maintenance fund fits a narrow need. Combining programs has its own rules, which we covered in an earlier insight on stacking.

Tax treatment differs between grants and loans

The two kinds of support may not be taxed the same way. Under paragraph 12(1)(x) of the Income Tax Act, government assistance is generally counted as income unless it has reduced the cost of a property or an expense. Department of Finance explanatory notes describe an exception for an "excluded loan", which is a bona fide loan that is not forgivable.

If your firm also claims SR&ED, the Canada Revenue Agency's policy applies the same rules to assistance received indirectly from a government organization. How a particular contribution is treated depends on the facts and the agreement. Surbiton does not give tax advice. Take this question to your accountant before you sign.

How to make the choice

Start with the need, not the program. If the problem is a payroll gap over the next year, the liquidity portion fits. If you have a pivot project of about $2 million or less, the 50% non-repayable share may be enough. For a larger project, compare the 75% repayable share against a BDC loan or your own bank.

Then put numbers on each option. Build a three-year cash flow for each one, including repayments and your own share. A financial model a lender will believe works just as well for a funder. Keep the dates in view: liquidity support ends by March 31, 2028, and pivot projects must be completed by March 31, 2029. Nation-owned businesses and development corporations should ask PacifiCan directly which terms apply to them.

This week, list your tariff-related costs and sort them into payroll, pivot and maintenance. Then book an hour with your accountant on tax treatment. Our Funding & Grants practice can help you set up the comparison.

Sources

"B.C. businesses can now access expanded support through the Regional Tariff Response Initiative", Pacific Economic Development Canada, Government of Canada. https://www.canada.ca/en/pacific-economic-development/news/2026/09/bc-businesses-can-now-access-expanded-support-through-the-regional-tariff-response-initiative.html
"Regional Tariff Response Initiative (RTRI)", Canadian Federation of Independent Business. https://www.cfib-fcei.ca/en/tools-resources/regional-tariff-response-initiative-rtri
"Support for Canadian workers and businesses affected by U.S. tariffs", Department of Finance Canada. https://www.canada.ca/en/department-finance/news/2026/08/support-for-canadian-workers-and-businesses-affected-by-us-tariffs.html
"Regional Tariff Response Initiative in British Columbia: Eligible applicants", Pacific Economic Development Canada, Government of Canada. https://www.canada.ca/en/pacific-economic-development/services/funding/regional-tariff-response-initiative/rtri-eligible-applicants.html
"Regional Tariff Response Initiative: Applicant Guide for Businesses", Pacific Economic Development Canada, Government of Canada. https://www.canada.ca/en/pacific-economic-development/services/funding/regional-tariff-response-initiative/rtri-business-applicant-guide.html
"Regional Tariff Response Initiative in British Columbia: Frequently asked questions (FAQs)", Pacific Economic Development Canada, Government of Canada. https://www.canada.ca/en/pacific-economic-development/services/funding/regional-tariff-response-initiative/rtri-faq.html
"Regional Defence Investment Initiative in British Columbia: Funding overview", Pacific Economic Development Canada, Government of Canada. https://www.canada.ca/en/pacific-economic-development/services/funding/regional-defence-investment-initiative/rdii-funding-overview.html
"Prime Minister Carney and Premier Ford launch new action plan to protect workers from tariffs and strengthen Ontario industries", Prime Minister of Canada. https://www.pm.gc.ca/en/news/news-releases/2026/10/21/prime-minister-carney-and-premier-ford-launch-new-action-plan-protect
"New Tariffs, Tighter Cash Flow: BDC Expands Pivot to Grow", Business Development Bank of Canada. https://www.bdc.ca/en/about/mediaroom/news-releases/new-tariffs-tighter-cash-flow-bdc-expands-pivot-to-grow
"PacifiCan's 2026–2027 Departmental Plan: Supplementary Information Tables", Pacific Economic Development Canada, Government of Canada. https://www.canada.ca/en/pacific-economic-development/corporate/transparency/departmental-plans/2026-2027-departmental-plan/supplementary-tables.html
"Explanatory Notes Relating to the Income Tax Act and Other Legislation", Department of Finance Canada. https://fin.canada.ca/drleg-apl/2024/nwmm-amvm-0424-n-2-eng.html
"Assistance and Contract Payments Policy", Canada Revenue Agency. https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/assistance-contract-payments-policy.html

BC business grants this fall: what reopened and who qualifies

Tue, 20 Oct 2026 00:00:00 GMT

Photo by Daulet Turubayev on Unsplash

If your business sells into the United States, the funding open to you changed in late August. A new federal tariff package came first, and new intakes for BC business grants and loans opened within weeks. Most of this money asks you to show tariff impact. Some of it must be repaid, and some of it closes on a fixed date.

This post sorts the new and reopened programs by three questions. Is it a grant or a loan? What evidence of impact does it ask for? When does it close? It covers only what changed in the last 60 days. We have written separately about combining programs and preparing a grant application.

What the August 25 package changed

On August 25, 2026, the Department of Finance announced a $7.5 billion package of new and enhanced measures. It builds on nearly $25 billion in supports over the previous 18 months. It is aimed mainly at small and medium-sized enterprises in the hardest-hit sectors.

Two parts matter most to BC owners. The Regional Tariff Response Initiative (RTRI) received an extra $1.5 billion, effective September 2026. A new Canada Strong Diversification Fund was created for larger projects. Both run through the regional development agencies. In BC, that means Pacific Economic Development Canada (PacifiCan).

The Regional Tariff Response Initiative through PacifiCan

Of everything in the package, the RTRI comes closest to a grant. BC businesses have been able to apply for the enhanced RTRI through PacifiCan since September 8, 2026.

Grant or loan. Both. Eligible businesses can receive up to $3 million in non-repayable support. That is made up of up to $2 million for liquidity and up to $1 million for pivot projects. Repayable support above $1 million is available for larger transformation projects.

Evidence of impact. The program is for businesses affected by tariffs. The August changes raised the non-repayable cap from $1 million to $3 million. They also added support for demonstrated liquidity needs on top of the existing support for pivot and capital investment plans. "Demonstrated" is the word to watch. Expect to show the cash flow strain in numbers, not just describe it.

Deadline. The RTRI provides $3.45 billion over four years. That is a fixed envelope. Whatever is committed early is no longer there for later applicants.

BDC Pivot to Grow is a loan, not a grant

The Business Development Bank of Canada (BDC) expanded its tariff program the same day. The new Pivot to Grow liquidity stream offers loans of $250,000 to $5 million. The loans carry 0% interest for the first 12 months and interest-only payments over 36 months. They amortize over 96 months.

Grant or loan. A loan. The terms are favourable, but every dollar is repaid.

Evidence of impact. The thresholds are specific. For the Liquidity Loan, at least 15% of sales must come from exports to the U.S., and tariffs must equal at least 5% of revenue. BDC also lowered the minimum annual revenue requirement to $1 million and simplified the application.

Deadline. The program runs until March 31, 2028, or until the envelope is fully used, whichever comes first.

Before you apply, ask your accountant to confirm how your U.S. sales and tariff costs are calculated. Those two percentages decide whether you qualify, so you need to be able to defend them.

Two federal funds for larger projects and workforce

The Canada Strong Diversification Fund is a new $2 billion stream of the Strategic Response Fund. It is meant to support tariff-affected firms, including medium-sized firms, with shovel-ready projects. The regional development agencies handle intake and triage, so a BC firm starts with PacifiCan. Shovel-ready means your planning, costing and approvals should already be done. Confirm the contribution terms before you build a project budget around this fund.

The Sectoral Workforce Innovation Fund (SWIF) is run by Employment and Social Development Canada (ESDC). It has had a continuous intake since August 25, 2026, running until funds are exhausted. It offers up to $10 million for projects of up to 36 months. Eligible applicants are not-for-profits, for-profit organizations, municipal governments, Indigenous organizations, training institutions, and provincial and territorial governments.

SWIF pays for workforce projects, not general business costs. "Until funds are exhausted" is still a deadline. You just won't find it on a calendar.

BC business grants with short windows

Northern Development Initiative Trust delivers Phase 2 of the province's Rural and Remote Employment Initiatives Fund (RREIF). Applications opened September 2, 2026. Businesses can receive up to $200,000 and First Nations development corporations up to $75,000. For small and medium-sized businesses, grants cover up to 75% of project costs. The money comes through Canada-British Columbia labour market funding to support communities affected by tariffs. Windows like this one open and close on set dates. Check the current status with Northern Development before you plan around it.

Two federal deadlines fall in the next three weeks.

October 31, 2026. Indigenous Services Canada (ISC) is running a call for proposals to support Indigenous entrepreneurship, under its Access to Business Opportunities stream. It closes at 11:59 pm Eastern Time, which is 8:59 pm in BC. The stream has an annual budget of $850,000. It funds group projects, so it suits organizations that support Indigenous entrepreneurs.
November 9, 2026. The Women Entrepreneurship Strategy (WES) Ecosystem Fund call closes at 11:59 pm Pacific Time. Up to $80 million in non-repayable contributions is available, paid out over four years starting in 2027-28. Proposals come from eligible organizations. Read the eligibility rules before you assume your firm can apply directly.

Most of the new money asks you to prove tariff impact, so the file you build now decides how fast you can apply.

Document your tariff exposure now

Nearly every program above asks one question in different words: how have tariffs affected you? The firms that move quickly when an intake opens already have the answer on paper.

Build a short file this month. It should hold:

U.S. sales as a share of total sales, by year, taken from your financial statements.
Tariffs paid or absorbed, and their share of revenue.
A 12-month cash flow forecast that shows any liquidity gap.
Any pivot or capital project you are considering, with quotes and a timeline.
Lost orders, cancelled contracts or margin changes you can tie to tariffs.

Update the file every quarter. Have your accountant review the figures, because BDC's 15% and 5% tests and the RTRI's liquidity test both depend on them. A complete file won't guarantee approval or change the criteria. It does let you apply while the money is still there.

If you want a second view on which of these intakes fits your business, our Funding & Grants practice can help.

Sources

"Support for Canadian workers and businesses affected by U.S. tariffs", Department of Finance Canada. https://www.canada.ca/en/department-finance/news/2026/08/support-for-canadian-workers-and-businesses-affected-by-us-tariffs.html
"Government of Canada invests over $11 million to strengthen businesses, jobs and communities in Northern B.C.", Pacific Economic Development Canada. https://www.canada.ca/en/pacific-economic-development/news/2026/09/government-of-canada-invests-over-11-million-to-strengthen-businesses-jobs-and-communities-in-northern-bc.html
"B.C. businesses can now access expanded support through the Regional Tariff Response Initiative", Pacific Economic Development Canada. https://www.canada.ca/en/pacific-economic-development/news/2026/09/bc-businesses-can-now-access-expanded-support-through-the-regional-tariff-response-initiative.html
"New Tariffs, Tighter Cash Flow: BDC Expands Pivot to Grow", Business Development Bank of Canada. https://www.bdc.ca/en/about/mediaroom/news-releases/new-tariffs-tighter-cash-flow-bdc-expands-pivot-to-grow
"Pivot to Grow Program", Business Development Bank of Canada. https://www.bdc.ca/en/financing/pivot-grow-loan
"Sectoral Workforce Development Program – Sectoral Workforce Innovation Fund", Employment and Social Development Canada. https://www.canada.ca/en/employment-social-development/services/funding/sectoral-workforce-innovation-fund.html
"Helping businesses adapt, grow, create jobs through new grants", Province of British Columbia. https://news.gov.bc.ca/releases/2026SDPR0040-000992
"Minister Valdez launches call for proposals for the Women Entrepreneurship Strategy Ecosystem Fund", Innovation, Science and Economic Development Canada. https://www.canada.ca/en/innovation-science-economic-development/news/2026/09/minister-valdez-launches-call-for-proposals-for-the-women-entrepreneurship-strategy-ecosystem-fund.html
"Get funding for your group's project to support Indigenous entrepreneurship", Indigenous Services Canada. https://www.isc-sac.gc.ca/eng/1582037564226/1610797399865

Selling a business confidentially: when to tell your staff

Fri, 16 Oct 2026 00:00:00 GMT

Photo by Jelly Marketing on Unsplash

You have a serious buyer, a signed non-disclosure agreement (NDA), and a team that has started to notice closed-door meetings. Most owners treat the question of when to tell staff as a test of nerve. When you are selling a business confidentially, the timing depends mostly on three facts: what your NDA and letter of intent (LOI) allow, how the deal is structured, and who has to know before closing.

Settle those three facts and the timing mostly follows. Leave them open and the news tends to come out on someone else's schedule.

Your staff are already uneasy

Owners often hold back because they fear the news will unsettle people. In the current BC market, many employees are unsettled already. The Canadian Federation of Independent Business (CFIB) reports that more BC businesses have closed than opened for five consecutive quarters. The same CFIB release says 27% of BC small businesses describe their condition as weak or critical.

Ownership change is also more common. The Business Development Bank of Canada (BDC) says in its fiscal 2026 annual report that demand for business transfer capital increased as owners worked through succession, restructuring, and growth under tighter conditions.

In that setting, silence does not reassure anyone. Your staff will fill a gap in information with the worst version they can imagine. What protects both the deal and your people is a plan that says who learns what, and when.

What BC law says happens to employees in a sale

Four rules shape the timing in British Columbia. Each one changes what you can honestly tell staff, and when.

Employment continues through the sale. Under section 97 of the Employment Standards Act, if all or part of a business is disposed of, the employment of its employees is deemed continuous and uninterrupted by the sale, for the purposes of the Act. A sale does not reset the clock. Ask your employment lawyer how that affects service-based entitlements such as termination pay, and who will carry them after closing.

Group terminations have fixed notice periods. Section 64 of the same Act applies if 50 or more employees at a single location are to be terminated within any two-month period. The employer must give written notice of group termination to each affected employee, any certified union, and the minister. Notice must be given at least 8 weeks before the first termination for 50 to 100 employees, 12 weeks for 101 to 300, and 16 weeks for 301 or more.

Union proceedings bind the buyer. Under section 35 of the Labour Relations Code, when a business or part of it is sold, the purchaser is bound by all proceedings under the Code before the sale. Those proceedings continue as if no change had occurred.

Termination pay is a selling cost. CFIB lists termination compensation, notice and/or severance, among the less obvious costs of selling when existing employees do not stay with the business.

Together, these rules mean deal structure decides what you can promise. If everyone moves across, you can tell staff their employment continues. If some jobs end, someone owes termination pay, and a large reduction at one site starts a statutory notice clock that may fall before closing.

Selling a business confidentially, in three stages

A staged plan matches disclosure to the deal's progress. Read your NDA and LOI before you start, because they may limit what you can share and with whom.

Stage one: a small inside circle under NDA. During due diligence, the buyer will want financials, contracts, and payroll records. Someone has to pull them together. Keep this group as small as the work allows, often a controller or senior manager. Put each person under a confidentiality agreement and agree a cover explanation for unusual requests.

Stage two: key people, at a defined point, with retention terms. Buyers usually want to meet the managers who run the business before they commit. Agree with the buyer in advance when that will happen, often once the main deal terms are settled. Bring those people in with something concrete: a retention or stay arrangement that rewards them for seeing the transition through. Telling a key manager without one invites them to start looking elsewhere.

Stage three: the full team, at signing or closing. Tell everyone once you can answer their real questions. Those questions are about jobs, pay, length of service, and who they will report to. An announcement made before you have those answers usually causes more anxiety than it relieves.

Silence does not reassure anyone. A plan that says who learns what, and when, does.

Statutory notice can override this order. If the deal involves group terminations under section 64, the notice dates are fixed by law, and your schedule has to fit around them.

What to have ready for the announcement

Prepare written answers before the meeting. Staff remember the first version they hear.

Whether their job continues, and with whom.
How the sale affects their length of service, confirmed with your lawyer.
Whether pay, benefits, and reporting lines change at closing.
For unionized workplaces, how the sale affects the union relationship.
Who they can talk to with follow-up questions.

Coordinate the message with the buyer. If you each say something different, you lose trust on both sides.

The exception: selling to your employees

One kind of deal reverses the logic. If the buyer is your staff, through a management buyout, a group of employees, or an employee ownership trust (EOT), they cannot stay outside the circle. They need time to organize, arrange financing, and decide whether they want to own the business.

This route is more common than many owners assume. BDC, citing CFIB, reports that about 23% of exiting owners intend to sell to their employees. BDC also notes that advisers usually suggest starting an exit strategy at least two years before the exit. A full succession can take up to five years, and as many as 10 for a family business.

An internal sale needs early, open conversations with the people who might buy. EOTs and other employee-ownership structures also carry tax consequences, so involve your accountant or tax adviser before you raise the idea with staff. Our earlier note on business succession options compares internal and external routes.

Before you say anything to staff

Surbiton does not give legal or tax advice. Bring in an employment lawyer before you announce a sale or change any terms of employment. They can confirm how sections 97 and 64 and the Labour Relations Code apply to your deal.

Then write your disclosure plan on one page. List the people in each stage, the trigger for moving to the next one, and the answers you will give at the announcement. Share it with the buyer and your lawyer before due diligence starts. If you are still getting the business itself in order, start with preparing your business for sale.

Our succession practice works with owners on this sequence.

Sources

"Employment Standards Act [RSBC 1996] Chapter 113", BC Laws, Province of British Columbia. https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/00_96113_01
"Labour Relations Code [RSBC 1996] Chapter 244", BC Laws, Province of British Columbia. https://www.bclaws.gov.bc.ca/civix/document/id/consol4/consol4/96244_01
"B.C. Election 2026: Small Business Priorities", Canadian Federation of Independent Business. https://www.cfib-fcei.ca/en/media/b.c.-election-2026-small-business-priorities
"Succession Start", Canadian Federation of Independent Business. https://www.cfib-fcei.ca/en/site/succession-start
"Annual report 2026: United for entrepreneurs", BDC. https://www.bdc.ca/en/about/corporate-governance/financial-results/annual-report-highlights
"How to make a succession plan", BDC. https://www.bdc.ca/en/articles-tools/change-ownership/plan-succession/3-common-exit-strategies
"Succession planning: Who will take over the family business?", BDC. https://www.bdc.ca/en/articles-tools/change-ownership/plan-succession/family-business-succession-overcoming-barriers

Nation-owned business feasibility: build it in stages

Thu, 15 Oct 2026 00:00:00 GMT

Photo by Zion C on Unsplash

Most development corporations do not lack ideas. What they often lack is a way to test those ideas in order, at a cost that matches what each test can tell them. Nation-owned business feasibility works best as a ladder of three rungs. Each rung is matched to a funder and to the decision in front of the board.

BC funding now marks the bottom and the top of that ladder. A new northern grant pays for outside expertise at the earliest stage. At the top, the Province's equity guarantee program sets a lender-grade test for commercial viability. Federal money from Indigenous Services Canada (ISC) may sit between them. The aim is simple: each study builds on the last, so nothing is paid for twice.

Nation-owned business feasibility works best in stages

The stakes go beyond the balance sheet. In construction, Indigenous employees made up 24.8% of workers in Indigenous-owned businesses in 2022, compared with 4.3% in non-Indigenous-owned businesses. A venture that works tends to employ people from the community.

Growth plans lag, though. A federal profile published in April 2026 found that about 53.0% of Indigenous-owned small and medium-sized enterprises (SMEs) planned to expand into new markets, against 64.7% of all SMEs. That gap has many causes. One a development corporation can control is how its feasibility work is staged. A first study commissioned too large and too early often stalls before anyone can act on it.

Staging fixes this. Each rung asks a narrower question, costs less than the next one, and produces evidence the next funder can use.

Rung one: early expertise in the north

On August 28, 2026, the Province announced the First Nations Business Development Capacity Building program. It provides as much as $75,000 per applicant, covering as much as 90% of eligible costs to access specialized expertise. Applications opened September 2, 2026, through Northern Development Initiative Trust (NDIT). The program runs under Phase 2 of the Province's Rural and Remote Employment Initiatives Fund, which uses Canada-BC labour market funding to support communities affected by tariffs.

The pool is $900,000 for First Nations development corporations across NDIT's service region. At the maximum grant, that covers 12 applicants. Expect competition for it.

The Province says the funding will help development corporations build capacity, negotiate partnerships, and pursue opportunities connected to industrial and infrastructure projects. That fits the first rung well. At this stage you are not asking whether the venture will make money. You are asking whether it deserves a proper study, and on what terms.

Good uses include a market scan, an independent read of a partnership offer from a proponent, or a review of a possible role in a nearby project. Keep the output short: a clear description of the opportunity, the main unknowns, and a scope for the study that would resolve them.

Rung two: a study that proves community benefit

The middle rung is a full feasibility study or business plan. This is where the federal Community Opportunity Readiness Program (CORP) often enters the conversation. Before you design around it, confirm with ISC's BC regional office that your study is an eligible cost for your project.

Two CORP rules should shape the study. First, the program provides a portion of the total project budget, and applicants must show other funding, such as private sector money, other programs, or their own funds. Second, ISC expects community economic benefits to exceed its contribution by a minimum ratio of 5:1.

That ratio is a useful discipline. The study should measure benefits in terms a reviewer can check: jobs, wages, own-source revenue, and contracts kept in the community. This is also where rung one pays off. A sharp scope and an early partner conversation become part of the evidence.

Size matters too. The CORP Regional Process is designed for proposals requesting up to $250,000. If your request is larger, ask ISC early how it will be handled.

Rung three: the lender-grade test

At the top rung, a development corporation asks lenders to put money behind the business. In BC, the First Nations Equity Financing Program (FNEFP) sets the bar.

The program has a cumulative cap of $1 billion for provincial loan guarantees. It has accepted proposals on a continuous basis since spring 2026, and will do so until the room is fully allocated. Projects need a minimum total capital cost of $25 million. Guarantees range from $5 million to $400 million. The Province is clear that a guarantee is not a loan or a grant. It is a backstop that helps applicants secure commercial financing.

The test is demanding. Applicants must show that proposals are commercially viable as a condition of approval. The Province assesses financial and technical risk, the strength of the business case, governance, and team experience. Its due diligence is designed to be similar to what a commercial lender would expect.

Federal options sit on the same rung for larger deals. The Canada Indigenous Loan Guarantee Corporation (CILGC) can provide guarantees between $20 million and $1 billion. The Canada Infrastructure Bank's Indigenous Equity Initiative offers equity loans of $5 million to $100 million, up to 90% of Indigenous equity interest. Our earlier post on Indigenous loan guarantee programs covers how these fit together.

A study written for the next funder is a study you only pay for once.

Sizing each study to the decision

The most common mistake is asking rung-one money to answer rung-three questions. A $75,000 grant cannot produce a bankable model for a $25 million project, and it should not try. Each rung has its own job.

Rung one decides whether the opportunity deserves a full study, and defines that study's scope.
Rung two tests whether the project works and what it returns to the community, in terms ISC can check against the 5:1 benchmark.
Rung three tests whether a lender will finance it, with assumptions held to commercial standards.

Write each rung so the next one can reuse it. Keep a single assumptions register from the start, and record the source of every price, volume, and cost. Name the people who will govern and run the business, because governance and team experience are part of the FNEFP assessment. By the time you apply for a guarantee, much of the application should already exist.

Our note on building a financial model a lender will believe covers the modelling side. For the order of steps in any business, see feasibility before financing.

Bring in your accountant and lawyer before rung three. Equity structure, tax treatment, and partnership terms all carry consequences that a feasibility study does not settle.

A practical next step

Before you apply for anything, write one page for your board. Name the opportunity, the next decision the board needs to make, and the rung that decision sits on. Then match the funder to the rung.

If you are in NDIT's service region and the opportunity is still at the idea stage, the capacity program is the natural place to start. Scope that work so its outputs feed a later CORP proposal, and keep the guarantee test in view from the first day.

Our Growth & Ventures practice helps development corporations plan feasibility work in stages.

Sources

"Helping businesses adapt, grow, create jobs through new grants", Province of British Columbia. https://news.gov.bc.ca/releases/2026SDPR0040-000992
"First Nations Equity Financing Program", Province of British Columbia. https://www2.gov.bc.ca/gov/content/employment-business/economic-development/indigenous-economic-development-resources/first-nations-equity-financing-program
"Launching First Nations Equity Financing Program", Province of British Columbia. https://news.gov.bc.ca/releases/2026FIN0023-000703
"Community Opportunity Readiness Program (CORP) - Program Guidelines", Indigenous Services Canada. https://sac-isc.gc.ca/eng/1100100033417/1613659339457
"Community Opportunity Readiness", Indigenous Services Canada. https://www.sac-isc.gc.ca/eng/1587563567774/1587563589262
"Community Opportunity Readiness Program (CORP) Regional Process", Province of British Columbia (Community Climate Funding). https://communityclimatefunding.gov.bc.ca/funding/e4711a76-07c1-ec11-983f-000d3a09e59c/
"The Canada Indigenous Loan Guarantee Corporation (CILGC)", Canada Indigenous Loan Guarantee Corporation. https://cilgc-cgpac.ca/en
"Canada Infrastructure Bank launches new Indigenous Equity Initiative", Canada Infrastructure Bank. https://cib-bic.ca/en/medias/articles/canada-infrastructure-bank-launches-new-indigenous-equity-initiative/
"SME Profile: Indigenous-owned businesses in Canada", Innovation, Science and Economic Development Canada. https://ised-isde.canada.ca/site/sme-research-statistics/en/research-reports/sme-profile-indigenous-owned-businesses-canada
"The Daily: Economic and Social Reports, January 2026", Statistics Canada. https://www150.statcan.gc.ca/n1/daily-quotidien/260128/dq260128b-eng.htm

Writing an Indigenous participation plan that holds up

Thu, 08 Oct 2026 00:00:00 GMT

Photo by Peter Robbins on Unsplash

Most firms treat an Indigenous participation plan (IPP) as one more scored section of a federal bid. It earns points, someone signs it off, and attention moves to price. That habit misses what the plan becomes once the contract is signed.

Indigenous Services Canada (ISC) says federal departments may ask bidders to submit an IPP with their proposals. The same page is direct about what follows. On award, IPPs become contractual obligations that are tracked, reported on, and legally enforceable. A commitment written to win points is a commitment you will be asked to prove.

Our earlier post on Indigenous participation in public bids covers scoring at bid stage. This one covers delivery after award.

What an IPP commits you to

According to ISC, an IPP may include a bidder's commitments to Indigenous subcontracting, employment, and training. A plan can support a limited bidding process. It can stand on its own where limiting bidding is not practical, or it can meet procurement obligations under a modern treaty.

Public Services and Procurement Canada (PSPC) says in its 2026 to 2027 Departmental Plan that it will keep implementing the mandatory minimum 5% Indigenous procurement target. Its tools include Limited to Indigenous Offers, IPPs, and unbundling opportunities. Your plan therefore feeds a number the department has to report.

Participation is rising. PSPC reports that Indigenous suppliers took part in 7% of its procurement processes in 2022-23, 10% in 2023-24, and 16% in 2024-25. Its target is at least 11% by March 31, 2027. Across government, ISC reports that more than $1.24 billion in contracts went to Indigenous businesses in 2023-24, or 6.1% of eligible contracts. About 40% of that went through set-asides under the Procurement Strategy for Indigenous Business (PSIB).

The rules on what counts are getting stricter

In March 2026 the Office of the Procurement Ombud published a review of contracts awarded to Indigenous businesses. It recommended that the amounts departments report toward the 5% target be updated right away. Those amounts should reflect only work that was paid for and clearly documented as carried out by Indigenous businesses. The Ombud's announcement also pointed to weak oversight and audit practices, and to reporting that overstates the impact of the target.

ISC is reworking its approach. The review sets out ISC's timeline. Engagement with PSPC, the Treasury Board of Canada Secretariat, and federal departments on the policy changes is scheduled for fall 2026, followed by Cabinet approval in winter. ISC expects to finalize the new policy and strategy in winter 2026 and to have them fully in place by April 1, 2027.

The final rules are not yet public, but the direction is clear enough to plan around. Departments will need to show paid, documented work, and they will ask contractors for the evidence.

A commitment written to win points is a commitment you will be asked to prove.

How to write an Indigenous participation plan that holds up

A plan holds up when each commitment can be checked against something outside the bid. Three habits make that possible.

State commitments in dollars and hours. A promise of "meaningful participation" cannot be measured. A subcontract value, a number of employment hours, or a count of training placements can. Tie each figure to a phase of the work so you can report progress as it happens.

Name businesses you can verify. For the 5% target, ISC's definition of an Indigenous business includes businesses registered in the Indigenous Business Directory and businesses on a modern treaty beneficiary business list. Check every named subcontractor against one of these sources before you submit. ISC reviews directory listings about every two years and removes businesses that no longer meet the criteria. Check again before work starts.

Plan for genuine work. The Ombud's review notes that post-award audits check whether businesses still meet the 51% Indigenous ownership and control criterion, along with the 33% Indigenous content criterion. A subcontractor that passes work straight through to others puts both that business and your plan at risk. Commit only to scopes the named business can perform with its own people and equipment. The business decides what it can take on. Your plan should record that conversation, not assume its outcome.

Your records will carry the weight

The weak point in most plans is not the commitment but the evidence. ISC's report on the 5% target for 2023-24 records PSPC's statement that its financial management tools cannot yet reliably and consistently track and report on subcontracting. If the department cannot produce the record, it will ask you for it.

Set up your tracking when the contract starts. For each commitment, keep:

the signed subcontract and its value
invoices and proof of payment to each Indigenous business
hours worked by Indigenous employees, by reporting period
training records, with dates and completions

Report against the plan at each reporting period, not only at closeout. Where you fall short, write down why and what you will do next. A shortfall with a documented reason and a recovery plan gets a different response than a gap found at audit. Ask your lawyer to review how the IPP clauses appear in the contract, including any remedies for shortfalls.

Modern treaties, defence, and BC work

Some contracts carry more than one set of obligations. The CanadaBuys Buyer's Guide notes that Comprehensive Land Claims Agreements and the PSIB are separate frameworks, and some procurements may be subject to both. Read the solicitation to see which applies, and write the plan to meet each one.

Defence is worth watching. In May 2026, National Defence told the House Standing Committee on National Defence that the Defence Industrial Strategy seeks to strengthen Indigenous participation in defence supply chains, infrastructure, and procurement. That work builds on the 5% target. Firms in that supply chain should be ready for participation commitments.

In British Columbia, ISC's figures for 2023-24 put the province at 2.9% of federal contract awards to Indigenous businesses, or $29.22 million. Provincial work has its own rules. The Province's Indigenous Procurement Initiative is co-led by the Ministry of Citizens' Services and the Ministry of Indigenous Relations and Reconciliation. Under the BC Procurement Plan 2024, buyers apply the Social Impact Purchasing Guidelines to services under $75,000. For all other purchases, they consider adding social, Indigenous, environmental, or economic criteria. The same record-keeping works under both federal and provincial rules.

Start with the plan you already have

Take the IPP from your most recent federal contract. For each commitment, find the record that proves it today: the subcontract, the payment, the hours. Where a record is missing, start keeping it now, before ISC's new policy takes effect in April 2027.

For bids still in progress, our post on reading the evaluation grid like an evaluator covers the scoring side. Our Public Sector & Bids practice works with firms on plans they can deliver.

Sources

"Learn how federal Indigenous procurement works", Indigenous Services Canada. https://www.sac-isc.gc.ca/eng/1696513417823/1696513480139
"Public Services and Procurement Canada's 2026 to 2027 Departmental Plan", Public Services and Procurement Canada. https://www.canada.ca/en/public-services-procurement/corporate/transparency/departmental-plan/2026-2027-plan.html
"Facts about federal Indigenous procurement policies and practices", Indigenous Services Canada. https://www.sac-isc.gc.ca/eng/1746637262900/1746637283564
"Procurement Practice Review of Contracts Awarded to Indigenous Businesses", Office of the Procurement Ombud. https://opo-boa.gc.ca/praapp-prorev/2026/epa-ppr-03-2026-eng.html
"Procurement Ombud Calls for Stronger Indigenous Procurement Policy to Advance Economic Reconciliation", Office of the Procurement Ombud, Government of Canada. https://www.canada.ca/en/procurement-ombudsman/news/2026/03/procurement-ombud-calls-for-stronger-indigenous-procurement-policy-to-advance-economic-reconciliation.html
"Mandatory minimum 5% Indigenous procurement target", Indigenous Services Canada. https://www.sac-isc.gc.ca/eng/1691786841904/1691786863431
"Indigenous Services Canada's Report on the Mandatory Minimum 5% Target - Fiscal Year 2023-24", Indigenous Services Canada. https://www.sac-isc.gc.ca/eng/1761738280117/1761738313724
"Indigenous considerations", Buyer's Guide, CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/buyer-s-guide/plan/socioeconomic-considerations/indigenous-considerations
"House Standing Committee on National Defence (NDDN): Defence Industrial Strategy - May 6, 2026", National Defence, Government of Canada. https://www.canada.ca/en/department-national-defence/corporate/reports-publications/proactive-disclosure/2026/nddn-defence-industrial-strategy.html
"Indigenous procurement", Province of British Columbia. https://www2.gov.bc.ca/gov/content/bc-procurement-resources/procurement-strategies-and-initiatives/indigenous-procurement
"BC Procurement Plan 2024", Province of British Columbia. https://www2.gov.bc.ca/gov/content/bc-procurement-resources/procurement-strategies-and-initiatives/bc-procurement-plan-2024

Business valuation: what you expect versus what buyers pay

Tue, 06 Oct 2026 00:00:00 GMT

Photo by Olena Kholina on Unsplash

Many owners set their price by working backward from retirement. They know what they need to live on, they add a cushion, and that becomes the number. Buyers start somewhere else. They begin with the earnings they believe will continue, discount for risk, and check the result against what a lender will finance.

So the business valuation you have in mind and the offer on the table are often far apart. That gap rarely means the buyer is being unfair. It is mostly a gap in risk, and this autumn's market makes that risk easier to see.

Why the two numbers start in different places

Your retirement number tells a buyer about you, not about the business. A buyer cannot pay more because you need more, and a lender will not lend against your plans.

Many owners also find the value hard to pin down. In research the Canadian Federation of Independent Business (CFIB) published in 2023, 43% of owners said they struggled to measure the value of their business. In the same research, 39% said the business relied too heavily on them day to day, and only 9% had a formal succession plan.

Those figures matter more now because a large wave of owners is getting ready to sell. A January 2026 study by the Business Development Bank of Canada (BDC) found that 61% of small and medium-sized businesses (SMEs) are led by owners aged 50 or older. Nearly one in five plan to exit within five years. BDC puts the value of the businesses expected to change hands in that period at $300 billion. For scale, Statistics Canada counted 1.37 million employer businesses in Canada in June 2026.

What the market looks like this autumn

Buyers are paying for future earnings, so the state of the economy shows up directly in their offers. In September, that outlook weakened.

On September 2, the Bank of Canada held its policy rate at 2.25% and said the economy and inflation were evolving broadly as it forecast in July. The same statement said financial conditions had tightened since July and that long-term bond yields had moved up globally, including in Canada. It also said the upside risks to inflation had increased and that new tariffs make growth prospects more uncertain.

The policy rate did not move, but that does not settle the matter for a sale. When debt costs more, a buyer who relies on borrowing can support less price from the same earnings.

Owners are feeling the change too. CFIB reported that small business confidence dropped nearly 10 points in September, to 47.9 on its long-term optimism index. That put the index below the 50-point threshold after a decline that began in July. In British Columbia, the three-month average was 54.2 and declining, as it was in Quebec, Alberta and Ontario. By sector, confidence remains weakest in agriculture, manufacturing and construction.

When buyers expect weaker earnings, they pay less in cash at closing. They move more of the price into terms that depend on how the business performs after the sale.

How buyers approach business valuation

Most buyers follow a similar sequence, even if they describe it differently.

First, they adjust your earnings. They take out personal expenses and one-time items. They also replace your salary with what it would cost to hire someone to do your job. The result can be higher or lower than the profit on your statements.

Next, they ask how long those earnings will last. They look at how concentrated your customers are, how long your contracts run, how stable your staff is, and how much of the business runs through you. Each weakness lowers what they will pay for each dollar of earnings.

Finally, they test the price against what they can finance. A lender looks at how much debt the cash flow can carry. The buyer adds its own equity. If those two amounts do not cover your asking price, the difference has to come from somewhere. Usually it comes from you, as vendor financing or deferred payments.

Your accountant can show you what your adjusted earnings look like. A licensed valuator, such as a Chartered Business Valuator (CBV), can tell you what they are worth.

The gap between your number and the offer is mostly a gap in risk.

Owner dependence and the first-year risk

BDC points out that about two-thirds of companies underperform in the first year after a transfer. Buyers know this and price it in. BDC also notes that buyers often need sellers to stay involved during the integration, and that sellers rarely receive full payment up front.

This is where owner dependence costs the most. If key customers, suppliers or know-how depend on you personally, the buyer is paying for something that leaves when you do. To protect itself, the buyer will offer a lower cash price, ask you to stay through a longer handover, and ask you to carry part of the price as a loan. You take on some of the risk of that first year.

Strong businesses still get strong prices

The same BDC study found there are about seven sellers for every 10 buyers, which means competition for strong businesses. BDC's 2026 annual report says demand for business transfer capital increased as owners worked through succession, restructuring and growth under tighter conditions.

Buyers have both the money and the interest. In a cooler economy they are simply more selective. A well-run business that does not depend on its owner can still attract competing offers. A weaker one gets the terms described above.

Indigenous development corporations as buyers

Indigenous development corporations and Nation-owned businesses are part of this buyer pool, and some now have financing built for acquisitions. On June 5, 2025, BDC and First Nations Bank of Canada announced a $100 million initiative to increase business acquisitions by Indigenous communities and economic development agencies. BDC's annual report says the initiative also supports acquisitions by majority Indigenous-owned businesses.

Each Nation decides what it buys and why. For a development corporation on the buying side, the same discipline applies: price from risk, confirm what lenders will finance, and plan for the first year after closing.

Steps to take before you go to market

Most of the gap is something you can work on, but it takes time. Start well before you plan to sell.

Get an independent valuation. Ask a CBV for a valuation before you set a price. It replaces your retirement number with one a buyer will recognize.
Reduce reliance on you. Hand customer relationships to others, write down how the work gets done, and build a second layer of management.
Clean up your financial statements. Ask your accountant to separate personal and one-time expenses so your adjusted earnings are clear.
See the business as a lender would. Our earlier piece on building a financial model a lender will believe covers what lenders look for.
Review tax and structure early. Budget 2024 proposed raising the Lifetime Capital Gains Exemption (LCGE) to $1.25 million of eligible capital gains, with indexation resuming in 2026. Your accountant can confirm what applies to you. Your lawyer should review any vendor financing or deferred payment terms before you agree to them.

None of this replaces professional advice. Surbiton does not give valuation, tax or legal advice, so involve your CBV, accountant and lawyer early.

A good first step is to write down two numbers: the price you need and the earnings a buyer could verify today. Then ask a CBV to explain the difference. For the wider preparation, see how to get a business ready for sale or our succession practice.

Sources

"Over $2 trillion in business assets are at stake as majority of small business owners plan to exit their business over the next decade", Canadian Federation of Independent Business. https://www.cfib-fcei.ca/en/media/over-2-trillion-in-business-assets-are-at-stake-as-majority-of-small-business-owners-plan-to-exit-their-business-over-the-next-decade
"Historic $300-billion wave of business acquisitions set to reshape Canada's economy: BDC study", Business Development Bank of Canada. https://www.bdc.ca/en/about/mediaroom/news-releases/historic-300-billion-wave-of-business-acquisitions-set-to-reshape-canada-economy
"The Daily: Canadian business counts, June 2026", Statistics Canada. https://www150.statcan.gc.ca/n1/daily-quotidien/260814/dq260814d-eng.htm
"Bank of Canada maintains the policy rate at 2¼%", Bank of Canada. https://www.bankofcanada.ca/2026/09/fad-press-release-2026-09-02/
"Fuel costs, tariff pressures drag small business confidence down in September", Canadian Federation of Independent Business. https://www.cfib-fcei.ca/en/media/fuel-costs-tariff-pressures-drag-small-business-confidence-down-in-september
"Monthly Business Barometer®: September 2026 results", Canadian Federation of Independent Business. https://www.cfib-fcei.ca/en/research-economic-analysis/business-barometer
"Finding your match when buying or selling a business", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/blog/finding-your-match-when-buying-selling-business
"Annual report 2026: United for entrepreneurs", Business Development Bank of Canada. https://www.bdc.ca/en/about/corporate-governance/financial-results/annual-report-highlights
"BDC and First Nations Bank of Canada launch a $100M initiative to boost business acquisitions", Business Development Bank of Canada. https://www.bdc.ca/en/about/mediaroom/news-releases/bdc-and-first-nations-bank-canada-launch-100m-initiative-to-boost-business-acquisitions
"Budget 2024: Tax Measures: Supplementary Information", Department of Finance Canada. https://budget.canada.ca/2024/report-rapport/tm-mf-en.html

Most bids are lost before they are written

Wed, 30 Sep 2026 00:00:00 GMT

Most bids are lost before anyone writes a word. They are lost at the moment a firm decides to pursue a tender it was never well placed to win.

Firms tend to look for the cause of a loss in the submission itself. The writing was thin, the formatting was off, the price was high. Sometimes that is true. More often the problem sits upstream. The firm could not show the experience the grid asked for, or it chased work that suited a competitor better, or it entered a contest decided on price when its strength was quality. Better writing does not fix any of those.

The evaluation is fixed before you start

A public tender tells you, in advance, how it will be judged. That is the most useful fact in public procurement, and the most often ignored.

Federal guidance on CanadaBuys is explicit. Bids are evaluated against mandatory criteria, point-rated criteria, or both, and the minimum and maximum points for each criterion are set out in the tender notice. Mandatory criteria are assessed on a pass or fail basis, and a bid that fails any one of them is considered non-responsive. The buyer's own guidance also notes that mandatory criteria cannot be waived once the solicitation has closed.

In British Columbia, the Province describes the same principle: submissions are evaluated against the criteria set out in the solicitation documents. Some scored processes, such as a Request for Qualifications, require a minimum score.

So the outcome of a bid is shaped, in large part, by the fit between your firm and the criteria. You can read those criteria on the day the opportunity is posted. That is when the real decision should be made.

The cost of saying yes too often

Every pursuit draws on the same small group of people: the ones who know the work, hold the credentials, and can write about it with authority. When a firm says yes to every tender that looks roughly relevant, those people spread thin. The strong pursuits get less attention than they deserve, and the weak ones still lose.

A disciplined no-bid decision is a way of protecting the bids you should win. It also gives your team a clear reason for the work they do take on.

A five-question test for any tender

We put every opportunity through the same five questions before any writing starts. They are simple to ask and uncomfortable to answer honestly.

1. Can we meet every mandatory requirement, as written, today?

Read the mandatory requirements line by line: licences, certifications, insurance, named personnel, years of experience, site visits, and any security requirement. On federal work with security requirements, buyers ask offerors to submit a completed Application for Registration form with their offer, and the Contract Security Program confirms whether offerors meet the requirements before award. If the answer to any mandatory is "almost" or "we could arrange it", treat it as a no until you can prove otherwise.

2. Can we clear the minimum score with evidence we already hold?

Rated criteria reward demonstrated experience. Look at what each criterion asks you to show, then list the projects, references, and people you would actually cite. If you would have to stretch a marginal project to fit, or name someone who is not available, the minimum threshold is at risk.

3. Do we understand the buyer's problem better than the notice does?

The firms that score well have usually understood the buyer's situation before the tender was posted. They have delivered similar work, studied the buyer's earlier contracts, or sat through a debrief. If everything you know about this buyer comes from the notice itself, you are starting behind.

4. Can we win on the stated basis of selection?

Federal tenders may be awarded to the lowest-priced compliant bid, to the best overall value on a combined score, or to the highest technical score within a stated budget. Each favours a different kind of firm. If the award goes to the lowest compliant price and your model is built on senior expertise, ask whether you can compete without discounting the work into a loss.

5. Can we deliver it well without harming the work we already have?

Winning a contract you cannot staff is worse than losing it. Check who would deliver, when, and what they would stop doing. Check cash flow too: know how long you can carry the costs of delivery before the first payment arrives.

How to use the test

Answer the five questions in writing, and keep the answers with the opportunity file. A failed mandatory ends the pursuit. A weak answer on any of the other four needs a stated reason to proceed, and someone senior should own that reason.

Revisit the decision when the buyer issues new information. A change to the scope, the schedule, or the criteria can turn a no into a yes, or the reverse.

If a criterion is unclear, ask. CanadaBuys advises suppliers to put questions about point rating to the contracting officer by the deadline for questions, and the Province of British Columbia notes that suppliers can ask questions about a posted solicitation before it closes. A question asked early costs nothing. An assumption that turns out wrong can cost the bid.

A disciplined no-bid decision is a way of protecting the bids you should win.

What a no-bid decision buys you

Over time, recorded decisions become a pattern. You start to see which buyers, contract types, and selection methods suit your firm, and which do not. That pattern is worth more than any single win, because it tells you where to spend the next pursuit.

Losses feed the same record. CanadaBuys explains that unsuccessful suppliers can request a debriefing, which covers the name of the successful supplier, the contract value, and an outline of the reasons the debriefed supplier was not successful. Ask for one every time, and add what you learn to the file.

The firms that win public work consistently are rarely the ones that bid on everything. They are the ones that decide early, decide honestly, and then put their full effort behind the few pursuits that fit.

Sources

"How bids are evaluated and selected", CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/getting-started/preparing-sell-government/how-bids-evaluated-and-selected
"Specifying evaluation criteria", Buyer's Guide, CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/buyer-s-guide/plan/method-selection/specifying-evaluation-criteria
"Conduct a technical evaluation", Buyer's Guide, CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/buyer-s-guide/receive-and-evaluate/offer-evaluation/conduct-technical-evaluation
"Security in solicitations of offers", Buyer's Guide, CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/buyer-s-guide/plan/contract-security-and-privacy-requirements/security-solicitations-offers
"Following up on a bid", CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/getting-started/preparing-sell-government/how-bid-tender-opportunities/following-bid
"Government procurement processes", Province of British Columbia. https://www2.gov.bc.ca/gov/content/bc-procurement-resources/sell-to-government/government-procurement-processes

Read the evaluation grid the way an evaluator does

Tue, 29 Sep 2026 00:00:00 GMT

An evaluator does not read your bid from front to back the way a client reads a brochure. They read it with the evaluation grid open beside it, one criterion at a time, looking for the evidence that earns the points.

If you want to score well, read the grid the same way before you write anything.

Evaluators score what the grid asks for

Public buyers are bound to the criteria they publish. Federal guidance on CanadaBuys states that evaluations should not be influenced by criteria or factors not specified in the solicitation. In British Columbia, the Province describes the same practice: submissions are evaluated against the criteria set out in the solicitation documents.

That rule cuts both ways. The evaluator cannot penalize you for something the grid does not mention. Nor can they reward you for it. A well-written section on your firm's history earns nothing if no criterion asks for it, and it uses pages you could have spent on the criteria that do.

On federal work, the technical evaluation is the responsibility of the client department, and each evaluator signs the evaluation report. These are careful readers working to a record. Make their job easy and your score is more likely to reflect what you can actually do.

Start with what can disqualify you

Mandatory requirements come first because they are pass or fail. CanadaBuys guidance is direct: offers that fail to meet any of the mandatory criteria are considered non-responsive, and only offers meeting all mandatory criteria go on to point rating.

Before any drafting, build a compliance matrix. List every mandatory requirement in the order it appears, quote its exact wording, and note where in your response you meet it and with what evidence. Include the requirements buried in the instructions to bidders: forms, signatures, page limits, file formats, and submission deadlines. A response that scores well on every rated criterion is worth nothing if it fails a mandatory on page three.

Treat the points as a budget

The solicitation must state the maximum points for each rated criterion, and any minimum thresholds needed to be considered compliant. Those numbers are the buyer telling you what matters most.

Read them as a budget for your effort. A criterion worth a large share of the total deserves your strongest evidence, your most senior reviewer, and a proportionate share of the page count. A criterion worth very little should be answered fully and briefly.

Then look for thresholds. CanadaBuys notes that offers must often meet a minimum overall score and also receive minimum points for specific criteria. A criterion with its own threshold can end your bid even if it carries modest weight. Find those criteria early, and make sure your answer to each one clears the bar with room to spare.

A criterion with its own threshold can end your bid even if it carries modest weight.

Mirror the grid in your structure

The simplest way to help an evaluator is to give them the grid back. Use the same numbering. Use each criterion's wording, or a close version of it, as your heading. Answer the criteria in the order they appear.

Within each answer, address every element the criterion names, in the same sequence. Rated criteria often bundle several requirements into one paragraph. Say a criterion asks for a description of the proposed approach, the risks you foresee, and how you will manage them. An answer that covers approach and risk in depth but leaves mitigation implicit has given the evaluator a reason to hold back points. Short sub-headings for each element remove that doubt.

Where the same evidence supports more than one criterion, restate it briefly in each place rather than pointing the evaluator elsewhere. Each criterion is scored on its own. Do not rely on an evaluator to carry a fact from one section to another.

Match the evidence to the verbs

The verbs in a rated criterion tell you what kind of answer will score. "List" asks for a list. "Describe" asks for an account. "Demonstrate" asks for proof: a named project, its scope, your role, the dates, and the result. CanadaBuys guidance asks buyers to set out in the solicitation how criteria such as knowledge and experience will be assessed. Read that part closely, because it describes the evidence the evaluator has been told to look for.

Respect the qualifiers too. If a criterion asks for projects completed within a stated period, or above a stated value, check every example against those limits before you include it. An example that falls outside them may earn nothing, and it takes the place of one that would have scored.

Know how price and merit combine

Read the basis of selection before you settle the technical approach. Federal buyers use methods such as the lowest evaluated price with mandatory technical criteria, the highest combined rating of technical merit and price, and the highest rated within budget. Each changes the calculation. Where price is decisive, an elaborate technical approach may add cost without adding points. Where technical merit carries most of the weight, a thin response priced low is unlikely to recover.

Follow the instructions on where price belongs. If the solicitation asks for a separate financial offer, keep pricing out of the technical response.

Ask about anything ambiguous

If you cannot tell how a criterion will be scored, ask the contracting authority before the deadline for questions. CanadaBuys advises suppliers to do exactly this for questions about point rating. A clear answer before closing is worth more than a careful guess.

Score yourself before you submit

Before submission, give the response and the grid to someone who did not write it. Ask them to score each criterion strictly, using only what is on the page. Where they hesitate, an evaluator will too. Fix those sections first.

Sources

"Evaluation process", Buyer's Guide, CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/buyer-s-guide/receive-and-evaluate/offer-evaluation/evaluation-process
"Conduct a technical evaluation", Buyer's Guide, CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/buyer-s-guide/receive-and-evaluate/offer-evaluation/conduct-technical-evaluation
"Specifying evaluation criteria", Buyer's Guide, CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/buyer-s-guide/plan/method-selection/specifying-evaluation-criteria
"Including basis of selection", Buyer's Guide, CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/buyer-s-guide/plan/method-selection/including-basis-selection
"How bids are evaluated and selected", CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/getting-started/preparing-sell-government/how-bids-evaluated-and-selected
"Government procurement processes", Province of British Columbia. https://www2.gov.bc.ca/gov/content/bc-procurement-resources/sell-to-government/government-procurement-processes

Feasibility before financing

Mon, 28 Sep 2026 00:00:00 GMT

Many founders approach a lender to find out whether their venture will work. That is the wrong order. A lender is not there to test your idea for you, and a declined application is an expensive way to learn what a feasibility study would have shown.

The questions a lender asks are predictable. They are also the right questions for you to ask of your own venture. The difference is timing. Answer them early and you can still change the plan. Answer them in a lender's office and you can only defend it.

What a lender is weighing

The Business Development Bank of Canada describes how financial institutions review a business loan application using the five Cs of credit:

Character: your credibility as a borrower, including your credit history and your experience.
Capital: how much of your own money you are putting into the project.
Capacity: your income, expenses, and existing debt.
Collateral: assets the lender can turn to if the loan is not repaid.
Conditions: the terms of the loan, and the state of the economy and your industry.

Underneath all five sits one concern: whether the business will generate enough cash to repay the debt. BDC notes that some lenders, itself included, base business loans on cash flow, looking at revenues, expenses, and profit.

For a new venture with no trading history, the lender cannot look at past results. It has to judge the plan. BDC's guidance on start-up loans says bankers need to understand your business model, want to see realistic financial projections for the next 18 to 24 months, and expect research and data showing that your projections and assumptions are realistic. They also want to see that you are sharing the risk with your own money, and that the person running the business can do it.

The questions behind the questions

Translate that into plain questions and you have the outline of a feasibility study.

Who will buy, and why from you? A market exists when specific customers have a need, a budget, and a reason to choose you over the alternatives. Describe them precisely. Show how you know.

What will it cost to open the doors? List every start-up cost: premises, fit-out, equipment, licences, inventory, hiring, and the working capital to carry the business until revenue arrives. Show how each loan dollar would be used.

When does cash turn positive, and what carries the business until then? A monthly cash-flow forecast answers this. It also shows the lowest point your bank balance will reach, which is the number most founders underestimate.

How much of your own money is at risk? Lenders read your contribution as a measure of conviction. Know the figure and where it comes from before you are asked.

Who runs it, and what have they done before? Relevant experience reduces risk in a lender's eyes. Gaps are not fatal if you show how they will be filled.

What happens if it goes more slowly? Run the forecast again with slower sales and higher costs. If the venture only works when every assumption holds, the lender will notice.

Why answering first saves money

The cheapest moment to change a venture is before you commit to it. Once a lease is signed, equipment is ordered, or staff are hired, every change in the plan costs real money. A feasibility study done before those commitments can tell you to change the scale, phase the launch, choose a different site, or stop. Each of those outcomes is cheaper on paper than in practice.

It also changes your conversation with lenders. BDC lists a set of documents lenders ask for, including financial statements, financial projections, how you will use the loan, and your marketing and production plans. Its guidance on business plans warns against assumptions that are not clearly broken down and against arguments made without supporting evidence, and it names feasibility studies, surveys, and market analyses as the kind of support a plan needs. A founder who arrives with that work done is answering the lender's questions before they are asked.

The cheapest moment to change a venture is before you commit to it.

Consider an illustrative case. Say a founder plans a new service business and approaches a lender with a strong idea and a single page of projections. The lender asks how the revenue figures were derived, what the monthly cash low point will be, and how much the founder is contributing. Each answer requires research the founder has not yet done. The application stalls, and the founder pays to do the work anyway, now under time pressure. The same research, done first, would have cost the same and left the founder in control of the timing.

A government-backed loan does not remove the test

Some founders assume a government program makes the lender's questions less important. It does not. The Canada Small Business Financing Program makes it easier for small businesses to get loans by sharing the risk with lenders, but the program's own guidance is clear that financial institutions are solely responsible for deciding whether to approve a loan, and that they must apply the same care and procedures as they would to conventional loans of similar amounts. If one lender declines, the program suggests trying another, since lenders have different criteria.

A program can improve the terms available. It does not change what a lender needs to see.

A feasibility study can say no

The honest purpose of a feasibility study is to find out, before money is committed, whether the venture can stand on its own numbers. Sometimes the answer is yes. Sometimes it is yes with a smaller start, a longer runway, or more capital. Occasionally it is no.

Each of those answers is worth having. The last one is worth the most, because it arrives before the lease, the loan, and the personal guarantee.

Sources

"How to get a business loan even with a bad credit score", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/money-finance/get-financing/find-financing-poor-credit
"How research can help you get a start-up business loan", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/start-buy-business/start-business/get-startup-business-loan
"How to get a business loan in Canada", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/money-finance/get-financing/how-to-get-business-loan-canada
"Mistakes to avoid when building your business plan", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/start-buy-business/start-business/business-plan-how-avoid-common-mistakes
"How a bank looks at your business", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/money-finance/get-financing/how-a-bank-looks-at-your-business
"Frequently asked questions: For small businesses", Canada Small Business Financing Program, Innovation, Science and Economic Development Canada. https://ised-isde.canada.ca/site/canada-small-business-financing-program/en/small-businesses/frequently-asked-questions-small-businesses
"Helping small businesses get loans", Canada Small Business Financing Program, Innovation, Science and Economic Development Canada. https://ised-isde.canada.ca/site/canada-small-business-financing-program/en/find-loan-your-small-business/helping-small-businesses-get-loans

Opening a second location: questions to answer first

Thu, 24 Sep 2026 00:00:00 GMT

Photo by Olek Buzunov on Unsplash

Opening a second location is the natural next step for a business that works. The first site is busy, customers ask for more, and the model seems proven. But the first location's success rests on things that do not automatically travel: the owner's daily presence, a reputation built over years, and often a lease signed on better terms than any available today.

A second location is a new venture with a familiar name. It deserves the same feasibility questions as any new venture, answered before the lease is signed.

Why the first location is not proof

The Business Development Bank of Canada (BDC) describes the change plainly in its tips for expanding to a new location: managing more than one site requires disciplined management, and you cannot do it all yourself. What worked because the owner was always there has to work when the owner is somewhere else.

So the first question is not whether the business works. It is which parts of it work without you, and whether the new site has what the first one had.

Demand at the new site

Every location has its own customers. Describe the catchment for the new site: who lives or works there, how they travel, and what they buy now. List the competitors within that area and what they charge.

Then test the evidence. Do some current customers already come from that area? Have you sold there through delivery, events or online orders? A pop-up, a short-term lease or a partnership can show demand at low cost before you commit to a full fit-out.

Who runs the second location

BDC advises owners to identify the best people in their company and build a strong team for the second location. It also recommends standardizing processes, from marketing and sales plans to human resources practices and financial controls.

That has two consequences. The manager of the new site should be chosen and ready before opening, not hired in the last month. And the first location needs to be able to run without that person, and with less of the owner's time, from the day the second one opens.

A second location is a new venture with a familiar name.

Cost and break-even

Build the budget for the new site from quotes: leasehold improvements, equipment, signage, opening inventory, hiring and training, permits, and the working capital to carry the site until it pays its way.

BDC cautions that it often takes longer than entrepreneurs expect to break even at a new operation, and that the existing business may suffer while staff adjust to new roles. Model the new site's cash monthly, and model the whole business together, so you can see whether a slow opening would also squeeze the first location. BDC's guidance on financial projections suggests a reserve of enough cash for 90 days of operations. Our note on a financial model a lender will believe covers how to build that forecast.

Leasing or buying the space

Most second locations are leased. BDC notes that new businesses are often unable to commit a lot of capital to a building, and that leasing usually makes more sense for a business that is still new. Owning can build wealth apart from the operating company, but it ties up capital that a young second site may need.

If you lease, read the terms closely. BDC stresses the importance of understanding what your landlord does and does not pay for before you commit. Check the term and renewal options, the additional rent for taxes and common costs, who pays for improvements, any exclusivity or use clauses, and whether you must give a personal guarantee. Have a lawyer review it before you sign.

Permits and licences

A new address means new approvals. The Province of British Columbia notes that most local governments require a business licence to operate, and that permit applications can take time to approve and may involve one or more inspections. It recommends starting as early as possible, and points businesses to BizPaL to find the permits they may need from all levels of government.

Zoning, signage, building permits for the fit-out, health permits for food businesses and occupancy approvals can each delay an opening. Contact the local government, or the First Nation if the site is on First Nation land, before you sign the lease.

Financing the expansion

Federal support exists for this kind of expansion. The Canada Small Business Financing Program helps businesses with gross annual revenues of $10 million or less obtain term loans of up to $1,000,000, of which no more than $500,000 may be for equipment and leasehold improvements. The loans are made by commercial lenders, which make the credit decision. They will want to see the same feasibility work described here.

Protect the first location

The first site pays the bills while the second one grows. Before opening, decide who covers your role there, which of its staff can move and which cannot, and what you will do if its sales dip during the opening months. Set a point, in months or dollars, at which you would scale back or close the new site rather than let it drain the business that funds it. Writing that limit down in advance makes a hard decision easier to take later.

A practical next step

Before you sign anything for a second site, write one page that answers each question above with evidence: the demand, the manager, the budget, the break-even month, the lease terms, the permits and the financing. Where an answer is a guess, find out. Where the numbers only work if everything goes right, change the plan or wait.

Our Growth & Ventures practice prepares feasibility studies and financial models for expansions, to the standard lenders and partners expect.

Sources

"5 top tips for successfully expanding to a new location", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/business-strategy-planning/manage-growth/5-tips-expanding-new-location
"6 steps to making financial projections for your new business", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/start-buy-business/start-business/6-steps-making-financial-projections-new-business
"Buy or lease my commercial space?", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/money-finance/buy-lease-commercial-real-estate/buy-or-lease-my-commercial-space
"Apply for permits and licences in B.C.", Province of British Columbia. https://www2.gov.bc.ca/gov/content/employment-business/business/managing-a-business/starting-a-business/permits-licences
"Helping small businesses get loans", Canada Small Business Financing Program, Innovation, Science and Economic Development Canada. https://ised-isde.canada.ca/site/canada-small-business-financing-program/en/find-loan-your-small-business/helping-small-businesses-get-loans

Preparing a grant application before the intake opens

Tue, 22 Sep 2026 00:00:00 GMT

Photo by Veronica Dudarev on Unsplash

A grant intake opens, and the clock starts. Firms that have been waiting for it submit within days. Firms that have not spend the window gathering documents, chasing quotes and discovering an eligibility rule they cannot meet in time. Preparing a grant application is mostly work you can do before the program opens at all.

Why preparation decides a grant application

Public funding is finite. The applicant's guide for CanExport SMEs, the federal export program, puts the point plainly: funding is limited and awarded competitively, and meeting the eligibility requirements does not guarantee funding. The guide notes about $31 million available in 2026-27.

When money is limited, a complete, clear and early application has an advantage. An incomplete one may be returned, delayed or simply outscored.

Timing matters even in programs without a fixed deadline. The B.C. Employer Training Grant accepts applications year round, but its frequently asked questions explain that applications cannot be submitted after the training start date. The program has a 60-day service standard and encourages employers to apply at least 60 days in advance.

Confirm eligibility early

Eligibility rules often depend on records that take time to change. CanExport SMEs, for example, requires an applicant to:

be an incorporated entity, limited liability partnership or co-operative established in Canada;
have between 3 and 500 full-time employees;
have between $300,000 and $100 million in annual revenue in the last complete tax year;
hold an active Canada Revenue Agency business number.

If your business sits near one of those lines, you need to know before the intake opens, not during it. A recent change in structure, a fiscal year-end that has not closed, or revenue booked in another entity can all affect the answer.

If the business number or the right program accounts are missing, the Canada Revenue Agency explains how to register for a business number. Do it well before you need it.

Some programs also require online accounts that take time to set up. The Employer Training Grant asks applicants to use a Business BCeID, and notes that it can take up to two weeks to receive one.

Build the file before the window opens

Most applications ask for the same core evidence. Assemble it in advance and keep it current.

Financial statements. The most recent year-end statements, and interim figures if the year-end is old. Know who prepared them and on what basis.

A project plan. What you will do, when, who will do it and what result you expect. Write it in plain language, with dates and measurable outcomes.

A budget built from quotes. Line-by-line costs backed by supplier quotes or rate cards, not estimates. Mark which costs are eligible under the program and which are not.

Proof of your own share. Most programs fund part of a project and expect you to fund the rest. Pacific Economic Development Canada (PacifiCan), for its Business Scale-up and Productivity program, lists what it will not accept as confirmation of funding: forecasted revenues, accounts receivable, commitments for future funding, and SR&ED credit receivables. Line up a bank letter, a term sheet or cash on hand.

A list of other funding. Record every other government source on the project. Our note on grant stacking explains why programs limit total government assistance.

Preparing a grant application is mostly work you can do before the program opens at all.

Write to the program's own criteria

Every program publishes what it is trying to achieve and how it assesses applications. Read that section first and use its language. If a program funds new export markets, say which market, why now and how you will measure success there. If it funds training, name the skills gap and the jobs that depend on closing it. Reviewers score what the guide asks for, so answer those questions directly and in the same order.

Do not spend too early

Many programs refuse costs incurred before a set date. CanExport SMEs does not cover costs incurred, invoiced or paid before the date the project is submitted in the application. The Employer Training Grant will not accept an application once training has started.

The safe rule is to sign nothing, order nothing and start nothing until you have read the program's eligibility date for costs. If timing is tight, ask the program officer before you commit.

Know who is allowed to apply

Programs set rules about who submits the application, and those rules apply to advisers too. The Employer Training Grant states that third parties, including grant writers, trainers and fee-based service providers, cannot apply for an employer. Employers must apply for themselves and must not share their BCeID login with a third party.

Payment arrangements are also restricted in some programs. PacifiCan lists commissions paid to consultants to secure funding among the costs its program will not cover.

An adviser can still add a great deal: finding the right program, testing eligibility, building the budget, and drafting and reviewing the content. The applicant signs, submits and remains responsible for what the application says.

A short checklist before the intake opens

Confirm eligibility against the current program guide, not last year's.
Check that registrations and online accounts are active.
Update financial statements and project budgets.
Collect quotes for every major cost.
Secure written proof of your own share of the funding.
List every other government source on the project.
Note the earliest date from which costs are eligible.

A practical next step

Pick the one or two programs most likely to fit your next project and read their current guides this month. Then build the file as if the intake opened next week. If the project also needs a lender, the same budget can feed a financial model a lender will believe.

Our Funding & Grants practice identifies programs, tests eligibility and prepares applications with clients, who submit them in their own name.

Sources

"CanExport SMEs 2026-2027: complete applicant's guide", Trade Commissioner Service, Government of Canada. https://www.tradecommissioner.gc.ca/en/our-solutions/funding-financing-international-business/canexport-smes/applicants-guide-2026-27.html
"Frequently Asked Questions: B.C. Employer Training Grant", WorkBC, Province of British Columbia. https://www.workbc.ca/find-loans-and-grants/industry-and-employers/bc-employer-training-grant/frequently-asked-questions
"BSP: Funding overview", Pacific Economic Development Canada. https://www.canada.ca/en/pacific-economic-development/services/funding/business-scale-up-productivity/bsp-funding-overview.html
"Business number and CRA program accounts", Canada Revenue Agency. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/registering-your-business/register.html

Getting a business ready for sale: the two-year runway

Thu, 17 Sep 2026 00:00:00 GMT

Photo by Zoshua Colah on Unsplash

Getting a business ready for sale is mostly work that happens long before a buyer appears. Buyers pay for two things above all: a business that runs without its owner, and financial records that need no explaining. Neither can be produced in a few months.

The Business Development Bank of Canada (BDC) recommends that owners begin preparing at least five years before retirement to put value-building steps in place. Its guide to succession planning sets a floor of 18 to 24 months before the desired exit. Two years is the shortest runway that works well. Here is how to use it.

Why a business ready for sale needs two years

The main constraint is the financial record. BDC notes that potential buyers typically want to track the financial performance of a business over at least the previous three years. Any improvement you make today, whether a cost removed or a pricing change, needs time to appear in a full year of results. A buyer will discount improvements that exist only in the last few months.

The second constraint is people. Handing customer relationships and decisions to a management team is slow, and buyers will want to see it working, not promised.

Two years out: the records

Start with the numbers a buyer will read.

Upgrade the financial statements. BDC suggests three years of financial reports prepared under a review engagement by a Chartered Professional Accountant (CPA). If your statements are currently prepared on a lighter basis, change that now.

Separate the owner from the business. BDC advises keeping a lid on operating costs and avoiding unnecessary expenses, especially those linked to the owner's lifestyle. Personal vehicles, family members on payroll who do not work in the business, and similar items all have to be explained and adjusted during due diligence. It is better to remove them.

Tidy the corporate record. Minute books, share registers, shareholder agreements and permits should be current. Gaps found by a buyer's lawyer slow a deal and erode trust.

Plan the tax. The lifetime capital gains exemption applies to up to $1.25 million of eligible capital gains on dispositions on or after 25 June 2024. Whether a sale qualifies depends on how the business is structured, and some planning has to be done well before a sale. Ask your accountant early.

Eighteen months out: make yourself replaceable

Reliance on the owner is one of the most common barriers to a sale. The Canadian Federation of Independent Business (CFIB) found that 39% of owners planning to exit say their business is too reliant on them for day-to-day operations.

BDC puts it directly: prospective buyers cannot buy you, they are buying your operations. Use this period to:

appoint or develop managers who make day-to-day decisions without you;
introduce those managers to your key customers and suppliers, and let them own the relationships;
write down how the business runs: pricing, quoting, purchasing, hiring and the other processes that live in your head;
consider retention arrangements for the staff a buyer will most want to keep.

Then step back. BDC suggests that owners consider stepping down as chief executive years before retirement, so a successor has time to show what they can do. Even six months of the business running under someone else's day-to-day direction gives a buyer evidence rather than a promise. It also tells you, before a buyer finds out, where the gaps still are.

Prospective buyers cannot buy you. They are buying your operations.

Twelve months out: value and contracts

Get a professional view of value. BDC recommends a chartered business valuator for an objective and realistic understanding of your company's value, or to judge whether a buyer's offer is reasonable. Valuators use earnings-based, market-based and asset-based methods. Market methods often apply a multiple of earnings before interest, taxes, depreciation and amortization (EBITDA) or of revenue. BDC also cautions that a valuator's figure is a guideline, and that the final price depends on the market and the buyer.

A valuation a year out leaves time to act on what it shows. If the gap between the value and your expectations is large, you can still improve the business or adjust the timing.

Check the contracts. Buyers will ask whether key contracts can be transferred to them. Read your lease, major customer agreements, supplier contracts and licences for change-of-control and assignment clauses. Renew a short lease, or negotiate an option to extend, before you go to market.

Six months out to sale: buyers and confidentiality

With the business prepared, the search for a buyer can begin. BDC describes several kinds of buyer: strategic buyers in your industry, financial partners, your own management team and the next generation of your family. Each values different things, so decide early which you want to approach.

Protect confidentiality throughout. BDC advises using non-disclosure agreements with every potential buyer before sharing sensitive information, and warns against creating a panic among customers and suppliers who learn you are for sale before you have told them. Decide in advance when and how you will tell your staff.

For larger businesses, BDC suggests hiring a mergers and acquisitions adviser to run the sale process. For smaller ones, a well-organized information package and a clear process still make a large difference.

A practical first step

Count back two years from the date you would like to sell, and put the steps above into a calendar. If that start date has already passed, the runway is shorter than it should be. That is a reason to start this month, not to rush the sale.

Our earlier note on business succession options compares the main routes to an exit. Our business succession planning page explains how we help owners prepare, alongside their accountant, lawyer and a licensed valuator.

Sources

"How to plan your exit from your business", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/change-ownership/plan-succession/thinking-about-retiring-how-plan-your-exit
"Budget 2025 Implementation Act, No. 1 (S.C. 2026, c. 3)", Justice Laws Website, Government of Canada. https://laws.justice.gc.ca/eng/AnnualStatutes/2026_3/page-1.html
"Over $2 trillion in business assets are at stake as majority of small business owners plan to exit their business over the next decade", Canadian Federation of Independent Business, 10 January 2023. https://www.cfib-fcei.ca/en/media/over-2-trillion-in-business-assets-are-at-stake-as-majority-of-small-business-owners-plan-to-exit-their-business-over-the-next-decade
"Business valuation: What's your company worth?", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/change-ownership/sell-business/business-valuation-whats-your-company-worth
"Finding the right buyer when you sell your business", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/change-ownership/sell-business/how-find-right-buyer-for-your-business
"How to create a succession plan", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/change-ownership/plan-succession/3-common-exit-strategies

Where public spending is heading, and what it means for BC firms

Tue, 15 Sep 2026 00:00:00 GMT

Photo by Ewan Streit on Unsplash

Public spending in Canada is changing in three ways at once. Federal buyers are favouring Canadian suppliers. Defence budgets are rising quickly. And in British Columbia, the Province is slowing the pace of its capital program after years of rapid construction. For BC engineering, construction and consulting firms, each change affects which pursuits are worth the effort and how a submission will be scored.

The scale of public spending

The federal government is one of the largest buyers in the country. In 2024-25, the Government of Canada awarded $66.9 billion in contracts for goods, services and construction, of which Public Services and Procurement Canada awarded $55.6 billion.

The rules that govern how that money is spent changed this past year.

Buy Canadian is now a scoring rule

Budget 2025 described the new Buy Canadian Policy as a move from "best efforts" to a clear obligation to buy Canadian. When domestic suppliers are not available, purchases are to include Canadian content or come from trusted partners, and those cases require ministerial approval. The federal policy on prioritizing Canadian suppliers and Canadian content applies in stages. It covered strategic procurements of $25 million and up published after 16 December 2025, and strategic procurements of $5 million and up published after 15 June 2026.

Strategic procurements are those above the thresholds in sectors such as defence, health, infrastructure, and information and communications technology. The policy gives buyers several tools:

limiting a competition to Canadian suppliers and eligible trading partners;
reducing a Canadian supplier's financial proposal by 10% for evaluation purposes;
allocating 25% of the total evaluation score to a Canadian value-added criterion, or applying a 25% price-based credit instead.

The same announcement set out a second policy, which requires Canadian-produced steel, aluminum and wood products in large federal construction and defence projects, where supplies are available. It applies to projects over $25 million that need at least $250,000 in those materials.

For consulting and construction firms, the practical effect is that Canadian content is now something to document, not just to state. Expect to show where your team is based, where the work is done, and where materials come from.

Public spending is shifting towards defence

The largest new stream of federal money is defence. Budget 2025 proposed $81.8 billion over five years, starting in 2025-26, to rebuild, rearm and reinvest in the Canadian Armed Forces. That includes $19.0 billion over five years to repair and sustain military capabilities and invest in defence infrastructure, such as ammunition and training facilities, and $10.9 billion for digital infrastructure.

The government has also changed how defence buying is done. In October 2025 it announced the Defence Investment Agency, set up within the Public Services and Procurement Canada portfolio to accelerate defence procurement.

Defence work is not only for defence contractors. Bases need buildings, utilities, roads and environmental work. Projects need cost estimators, schedulers and engineers. Many of these contracts carry security requirements, and clearances take time to obtain. Firms that want a share of this work should start that process before the opportunity they want is posted.

Canadian content is now something to document, not just to state.

Housing has a new federal buyer

On 14 September 2025, the federal government launched Build Canada Homes, a new agency whose mission is to build and finance more affordable homes. A new agency means new procurement processes, new standing offers and new evaluation approaches. Firms in housing design, construction and project management should follow its notices closely in its early years, while its supplier relationships are still forming. Its first contracts will show which delivery models and partners it prefers.

BC is repacing its capital plan

The Province's priorities are different, and its pace is slowing. Budget 2026, released on 17 February 2026, invests $37.7 billion in taxpayer-supported capital over three years. That includes $13.8 billion for transit and transportation infrastructure, $11.1 billion for new and upgraded health-care facilities, and $3.9 billion to build, renovate and seismically upgrade schools. Commercial Crown corporations expect to spend a further $15.3 billion over three years.

The Minister of Finance described this as carefully repacing the capital plan. For firms, that means fewer new starts in some programs and stiffer competition for the projects that proceed. Transportation and health care remain the largest categories, so pursuits there deserve the most attention.

What it means for BC consultants

A few adjustments follow from all of this.

Document your Canadian content. Keep a current record of where your staff are based, where your work is performed, and the origin of materials you specify or supply. Expect to be asked for it in federal bids.

Check your partners. If you team with firms outside Canada, understand how that affects your Canadian value-added score before you sign a teaming agreement.

Prepare for defence work early. Security clearances, facility requirements and past performance all take time to build. Decide now whether defence infrastructure is a market you want.

Follow the capital plan, not the headlines. In BC, transportation and health-care facilities carry most of the provincial capital budget. Build relationships with the owners of those programs before their tenders are posted.

Keep Indigenous participation in view. The federal 5% target still applies alongside Buy Canadian. Our note on Indigenous participation in public bids covers what evaluators look for.

A practical next step

Review your pipeline for the next 12 months against these shifts. For each pursuit, note whether it is likely to be a strategic procurement, whether Canadian content will be scored, and whether security requirements apply. Drop the ones you cannot compete for, and start preparing for the ones you can.

Our Public Sector & Bids practice tracks federal and BC opportunities and helps firms decide which to pursue.

Sources

"Government of Canada implements Buy Canadian Policy to strengthen Canada's economy and support homegrown industries", Public Services and Procurement Canada, 16 December 2025. https://www.canada.ca/en/public-services-procurement/news/2025/12/government-of-canada-implements-buy-canadian-policy-to-strengthen-canadas-economy-and-support-homegrown-industries.html
"Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements", CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buy-canadian-policy/policy-prioritizing-canadian-suppliers-and-canadian-content-strategic-federal-procurements
"Budget 2025, Chapter 4", Government of Canada. https://budget.canada.ca/2025/report-rapport/chap4-en.html
"Government announces Defence Investment Agency", National Defence, October 2025. https://www.canada.ca/en/department-national-defence/maple-leaf/defence/2025/10/government-announces-defence-investment-agency.html
"Budget secures B.C.'s future, protects critical services", BC Gov News, Ministry of Finance, 17 February 2026. https://news.gov.bc.ca/releases/2026FIN0003-000158
"Budget 2025, Chapter 3", Government of Canada. https://budget.canada.ca/2025/report-rapport/chap3-en.html
"Budget 2025, Chapter 2", Government of Canada. https://budget.canada.ca/2025/report-rapport/chap2-en.html

Indigenous loan guarantees for equity in major projects

Thu, 10 Sep 2026 00:00:00 GMT

Photo by Peter Robbins on Unsplash

Ownership stakes in major projects, from transmission lines to power plants, are increasingly part of the discussion between project proponents and First Nations, Métis and Inuit communities. A common obstacle is capital. An equity stake in a large project can cost hundreds of millions of dollars, and few communities can fund that from their own resources.

Indigenous loan guarantees exist to close that gap. Two programs matter most to Nations and development corporations in British Columbia: the federal Indigenous Loan Guarantee Program and the Province's First Nations Equity Financing Program.

Why equity stakes need help with financing

Buying into a project usually means borrowing against the future income from that stake. Lenders price that loan on risk. The Province of British Columbia names the barriers plainly: its program is intended to address limited credit history, insufficient collateral and high borrowing costs. When the federal program was launched, its announcement linked these challenges to the Indian Act and the legacy of colonialism.

The result, without support, is a loan that costs more or is not offered at all. Either can make a sound investment unworkable.

How an Indigenous loan guarantee works

The Province describes a loan guarantee as not a loan or a grant, but a financial backstop that enables applicants to secure commercial financing. The borrower signs a loan agreement with a lender, and the guarantor supports that agreement. The guarantor is only involved if the borrower defaults.

Because a government guarantor stands behind the loan, the lender's risk falls, and so does the price of the loan. The Department of Finance says the federal program supports Indigenous groups in obtaining more favourable borrowing rates, making it more affordable for most communities to take a greater share in the benefits of major projects.

The federal Indigenous Loan Guarantee Program

The federal program was launched on 17 December 2024 with up to $5 billion in loan guarantees for natural resource and energy projects. It is run by the Canada Indigenous Loan Guarantee Corporation (CILGC). Budget 2025 confirmed that the government had doubled it to $10 billion, and announced that CILGC would work with Indigenous investors on greenfield, or new-build, projects.

The program's eligibility rules are specific:

Guarantees range from $20 million to $1 billion per transaction.
Only Indigenous groups, or their wholly owned subsidiaries, may apply.
In a consortium, Indigenous groups that meet the program's criteria must contribute at least 25% of the value of the investment.
An application needs a clear statement of support from the group's leadership, such as a band council resolution.
The investment must be in a major project: a large or capital-intensive asset that earns its revenue mainly from operating, leasing or commercial use. Gaming and casino projects are not eligible.

The process runs from an expression of interest through eligibility assessment, due diligence, a term sheet, approval, community approvals and documentation, and then ongoing monitoring.

The scale is now visible. In June 2026, the federal government announced a guarantee supporting about $715 million in financing for seven Williams Treaties First Nations in Ontario to acquire a significant minority stake in the Darlington New Nuclear Project. It described it as the largest Indigenous loan guarantee ever issued in Canada.

A guarantee lowers the cost of the loan. It does not change the economics of the project.

BC's First Nations Equity Financing Program

British Columbia opened its own program to applications on 16 June 2026. It has a total cap of $1 billion and supports First Nations in obtaining equity loans for new investments or significant expansions of existing projects within their territories.

Its terms differ from the federal program in useful ways:

Guarantees may cover up to 20% of a project's total capital cost, from a minimum of $5 million to a maximum of $400 million.
There are two project categories: small and medium projects of $25 million to $125 million in capital costs, and large projects above $125 million.
Eligible sectors include natural resources, energy, tourism, agriculture and aquaculture, among others.
The program page lists eligible applicants as BC-based Indigenous governing bodies, such as band councils and modern Treaty Nations, and First Nations development corporations and other entities they own and control, with proof of support.

The Province accepts proposals on a continuous basis until the available guarantee room is fully allocated, and it applies due diligence similar to what a commercial lender would expect.

What lenders and guarantors will still test

A guarantee changes who carries the risk of default. It does not change whether the project will earn what its sponsors say. The questions a Nation's council and its advisers should ask are the same questions a lender will ask.

Will the distributions cover the debt? Model the cash the stake is expected to pay out each year against the loan payments, in a slow year as well as a good one.

What does the community own? Understand the rights attached to the shares: board seats, information rights, restrictions on sale, and what happens if the project needs more capital.

What could go wrong? Construction delays, cost overruns, commodity prices and regulatory change all affect distributions. Find out who bears each risk under the project agreements.

Who is advising whom? A project proponent's financial model is written to sell the deal. The Nation needs independent financial, legal and tax advice of its own.

A practical next step

If an equity offer is in front of your council or development corporation, start with an independent review of the project's financial model and the cash it will actually distribute. Then check each program's eligibility rules against the deal structure before you approach a lender.

Our Funding & Grants practice prepares feasibility work, financial models and guarantee applications to the standard lenders and councils need. Firms partnering with Nations on public work may also find our note on Indigenous participation in public bids useful.

Sources

"Launching First Nations Equity Financing Program", BC Gov News, Ministry of Finance, 16 June 2026. https://news.gov.bc.ca/releases/2026FIN0023-000703
"Government announces largest Indigenous loan guarantee in Canadian history to support Darlington New Nuclear Project", Department of Finance Canada, 23 June 2026. https://www.canada.ca/en/department-finance/news/2026/06/government-announces-largest-indigenous-loan-guarantee-in-canadian-history-to-support-darlington-new-nuclear-project.html
"Indigenous Loan Guarantee Program", Canada Development Investment Corporation, 17 December 2024. https://cdev.gc.ca/indigenous-loan-guarantee-program/
"Budget 2025, Chapter 1: Building a stronger Canadian economy", Government of Canada. https://budget.canada.ca/2025/report-rapport/chap1-en.html
"Program", Canada Indigenous Loan Guarantee Corporation. https://cilgc-cgpac.ca/en/program
"First Nations Equity Financing Program", Province of British Columbia. https://www2.gov.bc.ca/gov/content/employment-business/economic-development/indigenous-economic-development-resources/first-nations-equity-financing-program

A financial model a lender will believe

Tue, 08 Sep 2026 00:00:00 GMT

Photo by Alejandro Luengo on Unsplash

A financial model is an argument. It says that this business, run this way, will earn enough cash to repay what it borrows. A lender reads it the way a careful sceptic reads any argument: by testing the premises.

Most models that fail that test are not wrong in their arithmetic. They fail because the assumptions are hidden, the timing is annual when the risk is monthly, or the debt only works if every number lands exactly as hoped. Each of those can be fixed before the model reaches a lender.

What a lender looks for in a financial model

The Business Development Bank of Canada (BDC) sets out what banks ask for. They review financial statements to understand a company's financial health, profitability and capacity to repay debt, and they typically require a monthly cash flow forecast for the rest of the current year and the following year. BDC also warns that overly optimistic figures undermine your credibility and can make future loans harder to obtain.

A government-backed loan does not change this. Under the Canada Small Business Financing Program, financial institutions are solely responsible for making the decision to approve a loan. The model still has to persuade a lender.

So a lender is looking for three things. Can the business repay? Are the numbers realistic? And can the lender see how you reached them?

Build from drivers, not totals

A model that says "Year 1 revenue: $1.2 million" invites one question: why? A model that builds revenue from customers, price and frequency answers it.

Break every large number into the few drivers that produce it. For a service business, that might be billable staff, hours per week, utilization and rate. For a shop, it might be foot traffic, conversion and average sale. For a contractor, it might be a pipeline of named bids with a realistic win rate.

Then put every driver on one assumptions page, with its source beside it. Market research, quotes from suppliers, a signed lease, comparable businesses, your own trading history. A lender who can trace a number to its source spends less time doubting it.

Monthly cash, not annual profit

Profit and cash are different things, and new ventures fail on cash. BDC's guide to financial projections for a new business recommends a cash flow projection that shows monthly inflows and outflows for the first 12 months of operations, with quarterly or yearly projections for the second year.

Monthly timing exposes what annual totals hide. Customers who pay in 60 days, inventory bought before it sells, an annual insurance premium, a slow first quarter. The lowest point in the bank balance is usually the most important number in the model. BDC suggests setting aside a cash reserve with enough cash for 90 days of operations.

The lowest point in the bank balance is usually the most important number in the model.

Show that the debt can be serviced

A lender's central question is whether cash flow will cover the loan payments, with room to spare. BDC defines the debt service coverage ratio as earnings before interest, taxes, depreciation and amortization (EBITDA) divided by principal and interest. It describes a ratio of 2 or higher as healthy and a ratio of around 1 as less healthy, and notes that what counts as healthy varies between lenders.

Show that ratio in every period of the model, not just on average. A business can look comfortable over a year and still miss payments in its weakest months.

Expect covenants too. BDC explains that a covenant is a promise that a borrower makes to a lender as part of a loan agreement. Common financial covenants set a minimum debt service coverage ratio, a maximum debt-to-equity ratio and a minimum working capital ratio. In a serious or uncorrected breach, the lender can call in the loan. If your model shows a covenant you would likely breach in month 14, find out now.

Test the plan before the lender does

BDC recommends preparing most likely, optimistic and pessimistic scenarios for each projection. The pessimistic case matters most. Slow the sales ramp by three months, raise the main costs by 10%, and see what happens to the cash low point and the coverage ratio.

Then find the breaking point. How far can sales fall before the business cannot pay its debt? How many months of delay can the cash reserve absorb? A model that states its own limits reads as honest. A model that only works when everything goes right reads as a sales document.

If the plan includes grants or other public funding, model them on the dates you expect the money to arrive, not the dates you apply. Our note on grant stacking explains why the amounts can also change.

Make it easy to check

Lenders and their credit teams read many models. Help them.

Keep inputs separate from calculations. All assumptions in one place, no numbers typed into formulas.

Link the three statements. The income statement, balance sheet and cash flow should reconcile in every period. If the balance sheet does not balance, nothing else will be trusted.

Label the version. Date it, and keep a short note of what changed since the last one.

Write a one-page summary. The loan amount, its use, the repayment schedule, the coverage ratio in the base and pessimistic cases, and the three assumptions the plan depends on most.

A practical next step

Before you send a model to a lender, give it to someone who did not build it. Ask them to find the source of every assumption and the month with the lowest cash balance. Where they struggle, a lender will too.

Our Growth & Ventures practice builds and reviews financial models for new ventures and expansions, to the standard lenders, funders and boards expect.

Sources

"How to get a business loan in Canada", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/money-finance/get-financing/how-to-get-business-loan-canada
"6 steps to making financial projections for your new business", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/start-buy-business/start-business/6-steps-making-financial-projections-new-business
"What is the debt service coverage ratio (DSCR)?", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/debt-service-coverage-ratio
"What are loan covenants?", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/covenants
"Frequently asked questions: For small businesses", Canada Small Business Financing Program, Innovation, Science and Economic Development Canada. https://ised-isde.canada.ca/site/canada-small-business-financing-program/en/small-businesses/frequently-asked-questions-small-businesses

Business succession options: sale, family or employees

Thu, 03 Sep 2026 00:00:00 GMT

Photo by Nico Smit on Unsplash

Most owners have a preferred successor in mind long before they plan a sale. A daughter who grew up in the business, a manager who runs it day to day, or a competitor who has asked more than once. Those preferences matter. But the business succession options open to you are not equal, and the differences in price, timing and tax can be large.

The Business Development Bank of Canada (BDC) describes three common exit strategies: a family transfer, a management or employee buyout, and a sale to a third party. Here is what each one asks of you.

A family transfer

Passing the business to a child keeps it in the family and lets the owner stay involved. BDC notes that it reduces outside involvement and allows continued influence in operations. It also warns that not every successor is easy to train, and that conflict at work and at home is a real risk.

Tax used to discourage family sales. Selling shares to a child's corporation could be taxed as a dividend rather than a capital gain, under an anti-avoidance rule in section 84.1 of the Income Tax Act. A 2021 change opened an exception, and Parliament then tightened it. The Fall Economic Statement Implementation Act, 2023, which received royal assent on 20 June 2024, ensures that only genuine intergenerational business transfers are excluded from that rule.

The Department of Finance has summarized what genuine means. The parent gives up control, transfers the economic interest and the management of the business, the children keep control for a minimum period, and at least one child works in the business. There are two ways to qualify. An immediate transfer is completed over about three years under stricter conditions. A gradual transfer allows more flexibility but takes between five and 10 years. The rules apply to transactions on or after 1 January 2024.

A family transfer is still a sale. Agree the price, the payment terms and the roles of children who are not joining the business, and put them in writing.

Selling to managers or employees

A management or employee buyout suits owners who have no family successor or who want to protect the culture they built. BDC notes that it limits the need for due diligence, since the buyers already know the business. The main weakness is money. Management often has limited access to capital, which affects the price and terms, and vendor financing is typically required. A failed attempt can also damage morale.

Two newer structures give employee ownership more options. An employee ownership trust (EOT) is a form of employee ownership in which a trust holds shares of a corporation for the benefit of its employees. The rules apply to transactions after 31 December 2023. Federal law also offers a capital gains exemption on qualifying sales to an EOT. The Budget 2025 Implementation Act, No. 1 received royal assent on 26 March 2026. It amended that exemption and added a similar one for the first $10 million in capital gains on the sale of a business to a worker cooperative.

The conditions are detailed, and they cover who owns the shares before the sale, how the business is run, and who can benefit afterwards. They are worth testing with your accountant before you raise the idea with staff.

The business succession options open to you are not equal.

A sale to a third party

An outside sale can be to a competitor, a supplier, a private investor, a private equity firm, or a development corporation owned by a First Nation or other Indigenous community. BDC describes a sale to another operating company as a good option for shareholders looking for a clean exit and the highest possible value.

The price comes with scrutiny. Outside buyers will examine your records, your customers, your contracts and your staff in detail. BDC notes that buyers prefer stable businesses that show strength and profitability. A business that depends on the owner, or whose books need explaining, will sell for less or not at all.

Comparing the business succession options

The right route depends on what you want most. A few questions help.

Is price the priority? An outside sale usually offers the best chance of the highest value, but takes the most preparation.

Is continuity the priority? A family or employee transfer keeps the business closer to how you built it, but often means accepting payment over time.

Who can pay? Children and employees rarely have the capital to buy outright. Expect vendor financing, and judge whether the business can carry the payments.

How much tax will you keep? The lifetime capital gains exemption now applies to up to $1.25 million of eligible capital gains on dispositions on or after 25 June 2024, with indexation resuming in 2026. The intergenerational, EOT and worker cooperative rules add their own conditions. The after-tax result can differ sharply between routes.

We give no tax or legal advice. Every one of these questions needs your accountant and lawyer, and a licensed valuator if price is in doubt.

A practical next step

BDC advises that succession planning should begin at least 18 to 24 months before your desired exit. For a family or employee transfer, start earlier, because successors need time to learn the business and to arrange financing.

This month, write down the two routes you would consider, and ask your accountant to estimate the after-tax proceeds of each. Our earlier note on small business succession in BC explains why so many owners face this choice at once. Our business succession planning page sets out how we help owners compare the routes and prepare.

Sources

"How to create a succession plan", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/change-ownership/plan-succession/3-common-exit-strategies
"Fall Economic Statement Implementation Act, 2023 (S.C. 2024, c. 15)", Justice Laws Website, Government of Canada. https://laws.justice.gc.ca/eng/AnnualStatutes/2024_15/page-1.html
"Bill C-59: Fall Economic Statement Implementation Act, 2023, briefing material", Department of Finance Canada. https://www.canada.ca/en/department-finance/corporate/transparency/2024/nffn-part-2.html
"Employee Ownership Trusts (EOT)", Canada Revenue Agency. https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2023-made-canada-plan-strong-middle-class-affordable-economy-healthy-future/employee-ownership-trusts.html
"Budget 2025 Implementation Act, No. 1 (S.C. 2026, c. 3)", Justice Laws Website, Government of Canada. https://laws.justice.gc.ca/eng/AnnualStatutes/2026_3/page-1.html

Grant stacking: combining programs without losing them

Tue, 01 Sep 2026 00:00:00 GMT

Photo by Anastasiya Dalenka on Unsplash

A founder finds two programs that both fit a project and assumes the business can claim both. Often it can. But grant stacking has rules, and they are set program by program. Get them wrong and a program will reduce its contribution, or ask for money back after the project is done.

The rules are not hidden. They sit in each program's applicant guide, usually under a heading about other funding or total government assistance. The trouble is that each program draws the line in a different place, and counts different things against it.

What grant stacking means

Stacking is using more than one source of government assistance for the same project. Programs rarely forbid it. Instead, they set a ceiling on the total share of project costs that all governments together may cover, and they reduce their own contribution if you go over.

That ceiling usually counts every level of government. A federal program will look at provincial and municipal money too, and often at money from Crown corporations.

The limits differ by program

Three programs show how much the rules vary.

CanExport SMEs. The 2026-27 applicant guide for this federal export program says it funds up to 50% of eligible costs, and that total government assistance cannot exceed 75% of total project costs. Funding from federal departments, Crown corporations, and provincial, territorial and municipal governments all counts towards that limit.

Business Scale-up and Productivity. Pacific Economic Development Canada (PacifiCan) offers interest-free repayable contributions to incorporated businesses in BC. Its funding overview states that any government assistance applied to project costs may reduce BSP funding to keep total government support at no more than 50%. That assistance includes Scientific Research and Experimental Development (SR&ED) credits and other federal or provincial tax credits.

B.C. Employer Training Grant. The provincial training grant takes a different approach. Its frequently asked questions explain that you cannot receive ETG funding when training costs are already covered by another funding source, such as a government grant or bursary. You can still apply to the ETG for any costs that another source does not cover.

The same project could sit under a 75% ceiling in one program and a 50% ceiling in another. The lowest applicable ceiling is the one that binds.

A simple worked example

Take an illustrative export project with $100,000 in eligible costs. CanExport could fund up to 50%, or $50,000. Suppose a provincial program also agrees to cover $30,000 of the same costs.

Together that would be $80,000, or 80% of the project. CanExport's ceiling is 75%, so total government assistance can be no more than $75,000. With $30,000 already coming from the province, CanExport's share would drop to $45,000. The business still gains from stacking, but by less than it expected.

The lowest applicable ceiling is the one that binds.

Tax credits count too

Owners often forget that tax credits are a form of government assistance, and that the relationship runs both ways.

PacifiCan counts SR&ED and other tax credits towards its 50% limit, and advises applicants to exclude SR&ED-eligible costs from a BSP application when possible.

In the other direction, the Canada Revenue Agency explains that SR&ED is meant to give incentives on the net costs of performing SR&ED. Government assistance, which the policy defines to include a grant, subsidy or forgivable loan, reduces the qualified SR&ED expenditures of the project it relates to. A grant for research work can therefore shrink the tax credit on that same work.

Neither effect is a reason to avoid either program. It is a reason to plan them together, with your accountant, before the first application goes in.

Your own share has to be real

Programs that fund part of a project expect the business to fund the rest, and they check. PacifiCan's BSP overview lists what it will not accept as confirmation of the applicant's funding: forecasted revenues, accounts receivable, commitments for future funding, and SR&ED credit receivables. A stacking plan that relies on a tax refund to cover the business's own share may not pass that test.

Repayable money also counts. BSP contributions are interest-free, but they are repaid in monthly instalments over five years, starting one year after the project ends. They still count as government support on the project, and the repayments belong in your cash-flow forecast.

Grant stacking without losing funding

A few habits prevent most stacking problems.

Build a funding map. List every cost line in the project and assign each one to a single source: a specific program, a tax credit, a loan or your own money. No cost line should be claimed twice.

Find the ceiling for each program. Note each program's limit on total government assistance and what it counts. Work out the binding ceiling for the project as a whole.

Disclose every source. Name all government funding in every application, including amounts you have applied for but not yet received. A program that learns about other funding late is more likely to reduce or recover its contribution.

Respect each program's start date. CanExport's guide says it does not cover costs incurred, invoiced or paid before the date the project is submitted in the application. Other programs set their own eligibility dates. Spending early can make costs ineligible everywhere.

Plan the cash. Many programs reimburse after you spend. BSP, for example, reimburses eligible costs up to four times a year. The business has to carry the costs in between.

A practical next step

Before you apply to a second program, build the funding map for the project and check it against each program's ceiling. If the numbers only work when every program pays its maximum, change the plan now rather than after an approval letter.

Our Funding & Grants practice prepares funding maps and applications that hold up when programs compare notes. If you are combining programs on a current project, start a conversation.

Sources

"CanExport SMEs 2026-2027: complete applicant's guide", Trade Commissioner Service, Government of Canada. https://www.tradecommissioner.gc.ca/en/our-solutions/funding-financing-international-business/canexport-smes/applicants-guide-2026-27.html
"BSP: Funding overview", Pacific Economic Development Canada. https://www.canada.ca/en/pacific-economic-development/services/funding/business-scale-up-productivity/bsp-funding-overview.html
"Frequently Asked Questions: B.C. Employer Training Grant", WorkBC, Province of British Columbia. https://www.workbc.ca/find-loans-and-grants/industry-and-employers/bc-employer-training-grant/frequently-asked-questions
"Assistance and Contract Payments Policy", Scientific Research and Experimental Development Tax Incentive Program, Canada Revenue Agency. https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/assistance-contract-payments-policy.html

Indigenous participation in public bids: what evaluators want

Thu, 27 Aug 2026 00:00:00 GMT

Photo by Chad Montgomery on Unsplash

Indigenous participation in public bids is no longer a side issue for firms that sell to the federal government. It is built into how departments plan their buying, and into how some contracts are scored. For engineering, construction and professional services firms, that changes who you bid with and how you describe the arrangement.

It also raises the bar. Buyers and oversight bodies are now checking whether Indigenous participation is real. Firms that treat it as a box to tick are taking a growing risk.

The federal 5% target

Indigenous Services Canada (ISC) sets out the rule plainly: federal departments and agencies must ensure that a minimum 5% of the total value of contracts are held by Indigenous businesses. The requirement was phased in across 96 departments and agencies, with all of them expected to meet or exceed the target no later than the end of the 2024 to 2025 fiscal year.

The government reports that it is ahead of the target overall. According to ISC, in 2023-24 the Government of Canada awarded over $1.24 billion in contracts to Indigenous businesses, representing 6.1% of all eligible government contracts. That is a national total. Individual departments are at different points, and each has its own plan for how to get there.

How set-asides work

The main tool is the Procurement Strategy for Indigenous Business (PSIB). Under it, some contracts are reserved for Indigenous businesses. The federal buyer's guide on Indigenous considerations explains that a procurement must be set aside if the primary recipients or end users are an Indigenous population and the value exceeds $5,000. Departments may also choose to set aside any other procurement for qualified Indigenous businesses.

Eligibility is specific. ISC states that a business must be at least 51% owned and controlled by Indigenous people to be listed in the Indigenous Business Directory. A joint venture can qualify, but the agreement must show that the Indigenous partner has a lead role, with direct responsibility for managing and executing core business activities.

There is a second test that firms often overlook. ISC's compliance guidance states that at least 33% of the total value of work performed under a PSIB contract must be performed by the Indigenous business awarded the contract. Other businesses that also meet the ownership test can count towards that share. Owning the contract is not enough. The work itself has to be done.

Where Indigenous participation in public bids is scored

Set-asides decide who may bid. In other procurements, Indigenous participation can affect the score.

Modern treaties are the clearest case. The buyer's guide notes that when goods, services or construction will be delivered in an area covered by a comprehensive land claim agreement, the contracting obligations of that agreement apply. Several of those agreements require socioeconomic evaluation criteria in solicitations when feasible. The criteria cover subcontracting to beneficiary businesses, employment, training and skills development, and regional offices. Bidders must provide proof of their efforts and commitments.

Read those criteria the way an evaluator will. A commitment to hire "where possible" gives an evaluator little to score. A stated number of positions, a training plan with named courses, and a subcontract with a named business give them something concrete. Every commitment you make becomes a contract term, so make only the ones you can keep and report on.

Owning the contract is not enough. The work itself has to be done.

Scrutiny is increasing

ISC reports that since 2023 it has taken on the vast majority of Indigenous Business Directory assessments and audits itself. In October 2024 it began a review of every entry in the directory to confirm that listed businesses still meet the requirements.

The Office of the Procurement Ombud (OPO) went further. Its 2026 review of contracts awarded to Indigenous businesses found limited verification of Indigenous business status before award, and a failure to monitor whether the work was completed by Indigenous suppliers. It warned that if the 33% rule is not applied, non-Indigenous businesses may use Indigenous businesses as shell companies that meet the ownership test on paper but do not do the work.

For bidders, the direction is clear. Expect more checking of ownership, control and who actually delivers.

What a genuine partnership looks like

The firms that do this well start early and build arrangements that would make sense even without a set-aside. In practice, that means four things.

The Indigenous business does real work. Its share of the scope reflects its capacity and is large enough to meet the 33% rule with room to spare. It is not limited to administration or a share of profit.

Control matches ownership. Decisions, staffing and money flow in the way the joint venture agreement says they do. An evaluator or auditor reading the agreement should see the lead role in practice, not only on paper.

Capacity is built, not borrowed. Training, mentoring and equipment arrangements help the Indigenous partner win work on its own later. That is the purpose of the policy.

The partnership respects the Nation's own priorities. Many First Nations and their development corporations have their own procurement and economic development policies. Learn them before you propose anything.

British Columbia is moving in a similar direction. The Province describes its Indigenous Procurement Initiative as working towards culturally appropriate procurement practices and an Indigenous-specific procurement plan.

A practical next step

Before your next federal pursuit, check whether the opportunity is set aside, whether the solicitation includes socioeconomic criteria, and what each would require of your team. If you intend to bid with an Indigenous business, agree the scope split, the decision rights and the reporting in writing before the solicitation closes.

Our Public Sector & Bids practice helps firms plan participation commitments and write them so evaluators can score them. If you are weighing a partnership for an upcoming bid, start a conversation.

Sources

"Mandatory minimum 5% Indigenous procurement target", Indigenous Services Canada. https://www.sac-isc.gc.ca/eng/1691786841904/1691786863431
"Facts about federal Indigenous procurement policies and practices", Indigenous Services Canada. https://www.sac-isc.gc.ca/eng/1746637262900/1746637283564
"Socioeconomic considerations: Indigenous considerations", Buyer's Guide, CanadaBuys, Government of Canada. https://canadabuys.canada.ca/en/buyer-s-portal/buyer-s-guide/plan/socioeconomic-considerations/indigenous-considerations
"Procurement Strategy for Indigenous Business compliance audit information", Indigenous Services Canada. https://www.sac-isc.gc.ca/eng/1407949234714/1610985664338
"Procurement Practice Review of Contracts Awarded to Indigenous Businesses", Office of the Procurement Ombud, 2026. https://opo-boa.gc.ca/praapp-prorev/2026/epa-ppr-03-2026-eng.html
"Procurement strategies and initiatives", Province of British Columbia. https://www2.gov.bc.ca/gov/content/bc-procurement-resources/procurement-strategies-and-initiatives

Small business succession in BC: the retirement wave

Tue, 25 Aug 2026 00:00:00 GMT

Photo by Matt Hanns Schroeter on Unsplash

Small business succession is about to become one of the busiest parts of the BC economy. A large share of owners expect to step away within the next decade, and most of them have not written down how.

That is not a reason for alarm. It is a reason to plan. The owners who prepare will have more choices about who takes over, on what terms and when. The ones who wait will find that their timing is set by health, fatigue or the market rather than by them.

The numbers behind the retirement wave

The Canadian Federation of Independent Business (CFIB) surveyed owners for its 2023 report on succession. It found that over three-quarters (76%) of small business owners are planning to exit their business within the next decade. CFIB estimates that over $2 trillion in business assets could change hands in that period. Retirement was the most common reason, cited by 75% of those planning to leave.

The age profile points the same way. In the federal Survey on Financing and Growth of Small and Medium Enterprises for 2023, 60% of primary decision makers were 50 years of age or older.

British Columbia has a large stake in this. Innovation, Science and Economic Development Canada counts 170,512 small employer businesses in BC as of December 2024, the most in Western Canada. The CFIB figures are national, but there is little reason to think BC owners are younger or better prepared than the rest of the country.

Few owners have a written plan

The striking finding is not how many owners plan to leave. It is how few are ready. CFIB found that only 9% have a formal business succession plan. The rest either have an informal plan or none at all.

An informal plan usually lives in the owner's head. It might be "my daughter will take it over" or "a competitor has always wanted to buy us". Neither is a plan until someone has tested it: whether the successor wants the business, whether the buyer can finance it, and what the business is worth to either of them.

Why sellers need more time than they expect

CFIB asked owners what stood in their way. The top three obstacles were finding a suitable buyer or successor (54%), measuring the value of the business (43%), and a business too reliant on the owner for day-to-day operations (39%).

Each of those takes time to fix.

Finding a buyer. Family members need years to learn the business, if they want it at all. Employees need time to organize financing. Outside buyers need to find you, and a business that is not ready for scrutiny will lose them in due diligence.

Setting a value. Owners often carry a number in mind that has little to do with what a buyer can pay from the business's cash flow. Closing that gap usually means improving the business, not arguing about the price.

Reducing reliance on the owner. A business where the owner holds every key customer relationship, approves every quote and knows where everything is filed is hard to sell. Buyers pay less for it, or ask the owner to stay on for years. Building a second layer of management takes time.

The owners who prepare will have more choices about who takes over, on what terms and when.

What the retirement wave means for buyers

For buyers, more owners leaving should mean more businesses to choose from. Investors, entrepreneurs, newcomers to BC, competitors and Indigenous development corporations are all potential buyers of established businesses. Choice is not the same as quality, though. Many businesses coming to market will not be ready, and some will not be sound.

Due diligence is where buyers find out. The Business Development Bank of Canada (BDC) advises buyers to review accountant-prepared financial statements for at least the past three to five years, along with tax returns, bank statements and records on margins, customers and receivables. BDC notes that due diligence for a business acquisition can range from six to 12 weeks or longer, and that buyers should confirm that key contracts can be assigned to them.

Financing is the other test. Many deals are funded partly by the seller. BDC explains that vendor financing typically amounts to 10% to 15% of the transaction amount, with repayment usually over three to five years and payments often deferred for the first year. A seller who agrees to carry part of the price is showing confidence in the business. A seller who refuses is telling you something too.

Small business succession works better with advisers involved

CFIB found that 43% of owners turn to accountants for help with succession and about a quarter work with lawyers. Those are the right people for tax, structure and contracts. A succession also needs someone to look at the business the way a buyer will: the records, the dependence on the owner, the key contracts and the staff.

We do that work in our Deals & Investment practice, alongside the owner's accountant, lawyer and a licensed valuator. We do not give legal, tax or valuation advice.

A practical first step

If you own a business and expect to leave it within 10 years, write down three things this month: when you would like to leave, who you think could take over, and what you believe the business is worth. Then ask your accountant whether the financial statements would support that value to an outside buyer.

The gap between your answers and your accountant's is your succession plan's starting point. Our page on business succession planning sets out the routes owners usually compare and the runway each one needs.

Sources

"Over $2 trillion in business assets are at stake as majority of small business owners plan to exit their business over the next decade", Canadian Federation of Independent Business, 10 January 2023. https://www.cfib-fcei.ca/en/media/over-2-trillion-in-business-assets-are-at-stake-as-majority-of-small-business-owners-plan-to-exit-their-business-over-the-next-decade
"Summary of the Survey on Financing and Growth of Small and Medium Enterprises 2023", Innovation, Science and Economic Development Canada. https://ised-isde.canada.ca/site/sme-research-statistics/en/survey-data-and-analysis/survey-financing-and-growth-small-and-medium-enterprises/summary-survey-financing-and-growth-small-and-medium-enterprises-2023
"Key Small Business Statistics 2025", Innovation, Science and Economic Development Canada. https://ised-isde.canada.ca/site/sme-research-statistics/en/key-small-business-statistics/key-small-business-statistics-2025
"How to conduct due diligence when buying a business", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/start-buy-business/buy-business/buying-business-conducting-due-diligence
"Vendor financing (VTB) for mergers and acquisitions", Business Development Bank of Canada. https://www.bdc.ca/en/articles-tools/start-buy-business/buy-business/how-vendor-financing-can-help-your-acquisition