EDC — Export Guarantee Program
Canada
Maximize your access to working capital
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
grant_single|deadlines
- grant_single|openingDateJuly 09, 2024
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
- Wholesale trade
- Finance and insurance
grant_single|grantors
- Government of Canada
- Export Development Canada (EDC)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a working capital solution that provides guarantees to your financial institution so they can extend your line of credit and provide term loans or margin international assets or inventory.
grant_single_labels|projects
The Export Guarantee Program (EGP) is designed to support businesses in expanding their international presence by providing guarantees for increased access to working capital. Eligible activities include managing day-to-day operating costs, expanding into new international markets, and supporting foreign investments.
- Manage your day-to-day operating costs with increased working capital financing.
- Expand sales into new international markets and buy equipment or relocate inventory close to buyers.
- Support investments outside Canada for setting up international affiliates or expanding global business ventures.
grant_single|admissibleProjectsExample
$900,000
Calgary
Development of a new logistics hub for food exports
$150,000
Kelowna
Financing an international marketing campaign for a small winery
$400,000
Vancouver
Financing the expansion of export operations for a tech startup
$600,000
Toronto
Establishing a new trade office for apparel exports to Asia
$1,200,000
Montreal
Investment in renewable energy projects for international expansion
$250,000
Halifax
Securing a new international sales contract for a recycling cooperative
grant_single_labels|admissibility
Eligibility for the Export Guarantee Program is contingent upon meeting certain financial and operational criteria.
- The company must have an established lending agreement with a willing financial institution.
- The company must be engaged in international sales activities.
- The company should need the financing to manage cash flow, grow international business, or support international investments.
grant_eligibility_criteria|who_can_apply
Eligible applicants for the Export Guarantee Program (EGP) are Canadian businesses seeking working capital to support international operations and growth. The program partners with financial institutions to extend these benefits.
- Businesses with an existing loan agreement with a financial institution willing to collaborate under the EGP.
- Companies with significant international sales and market expansion plans.
- Enterprises needing increased borrowing capacity for investments outside of Canada.
- Businesses looking to finance international assets or relocate inventory closer to buyers.
grant_eligibility_criteria|eligible_expenses
The Export Guarantee Program focuses on aiding businesses in managing their cash flow, expanding their international presence, and supporting investments beyond Canada. It enables financial institutions to increase lending capabilities for qualified businesses aiming to enhance their export operations.
- Expanding sales into new international markets.
- Acquiring new equipment necessary for international business activities.
- Locating inventory closer to international buyers to improve supply chain efficiency.
- Setting up international affiliates to support global expansion.
- Acquiring or expanding businesses within global markets.
- Managing day-to-day operating costs through increased working capital financing.
- Obtaining pre-shipment financing to support export activities.
grant_eligibility_criteria|zone
The Export Guarantee Program supports various financial needs related to international business expansion and investment.
- Extension of your line of credit for managing day-to-day operating costs.
- Provision of term loans for expanding sales into new markets or buying new equipment.
- Financing seasonal bulges or pre-shipment needs.
- Supporting international investments, such as setting up an international affiliate or acquiring a business globally.
- Locating inventory closer to international buyers.
grant_single_labels|criteria
The Export Guarantee Program evaluates applications based on several factors related to international sales and the financial institution’s lending agreement to ensure the program is the best fit for the business. Crucial criteria also involve assessing the company’s credit rating and the amount of financing needed.
- Amount of international sales produced over time
- Financial institution’s willingness to establish a loan agreement
- Credit rating
- Duration of coverage
- Amount of financing needed
grant_single_labels|register
- Step 1: Contact Your Financial Institution
- Email, call, or meet with your financial institution to discuss your eligibility for the EGP.
- Understand the terms and conditions your financial institution has for working with EDC under the EGP.
- Step 2: Assess Loan Agreement
- Work with your financial institution to establish or assess a loan agreement that will be supported by the guarantee.
- Ensure that the agreement aligns with your business goals for international growth or investment.
- Step 3: Gather Required Information
- Prepare documentation that outlines your international sales history and financial information.
- Ensure full understanding of the loan limits and guarantee conditions, capped at US $25 million exposure.
- Step 4: Application Process
- Work with your financial institution to submit an application for the EGP through their contact with EDC.
- Provide any additional documentation EDC or your financial institution requires during this process.
- Step 5: Finalize and Confirm
- Upon approval, finalize the loan agreement with your financial institution incorporating the EGP.
- Review any closing conditions or additional paperwork needed as stipulated by the EDC or your FI.
grant_single_labels|otherInfo
The following are additional considerations that may be relevant for applicants:
- Fees associated with the EGP are determined based on various factors including credit rating and duration.
- The collaboration with a financial institution is crucial as they must be willing to establish a loan agreement.
- The cap for EGP coverage is US $25 million, which includes all EGP guarantees combined.
- All guarantee arrangements are underwritten by Export Development Canada (EDC), sharing risk with financial institutions.
grant_single_labels|contact
1-800-229-0575
Apply to this program
Enhance Your Business with the Export Guarantee Program
The Export Guarantee Program (EGP) by Export Development Canada (EDC) is designed to facilitate international business growth by providing guarantees of up to US $25 million to financial institutions. This enables businesses to access the necessary capital to manage operating costs, invest abroad, and expand into new markets.
Detailed Insights into the Export Guarantee Program and Its Benefits for Your Business
The Export Guarantee Program (EGP) offered by Export Development Canada (EDC) serves as a vital tool for Canadian businesses looking to enhance their export initiatives and international reach. This program provides a working capital solution by offering guarantees to financial institutions on behalf of the exporting company, which helps these institutions extend favorable financial support to eligible businesses. The EGP is particularly beneficial as it addresses the common challenges faced by exporters, such as managing cash flow, accessing additional financing for international growth, and supporting international investments.
In today’s global economy, having adequate financing is crucial for businesses to manage their operational costs and capitalize on growth opportunities. The EGP facilitates this by allowing companies to increase their lines of credit or secure term loans which can be used for day-to-day operations, tackling seasonal peaks, or even pre-shipment financing. Managing cash flow becomes notably easier with such financial support, as businesses can align their funding with operational requirements without the stress of financial constraints.
Moreover, for businesses aiming to expand their international footprint, whether it’s penetrating new markets or scaling operations, the EGP provides the necessary financial backing. This is essential for scenarios that involve purchasing new equipment, relocating inventory closer to international buyers, or simply having the additional capital to cover unexpected expenses that may arise during international expansion. The EGP offers a flexible solution that helps in aligning financial resources with strategic business objectives, ensuring that companies can seize new opportunities as they arise.
Another significant advantage of the Export Guarantee Program is its support in international investments. Whether a business is considering setting up an affiliate overseas, acquiring a new business, or expanding existing operations in a foreign market, the EGP can amplify borrowing capacity. This support results in increased financial leverage which is often necessary to establish or expand international ventures.
The mechanics of the EGP involve EDC sharing the risk with financial institutions via a guarantee, which encourages these institutions to offer more substantial financial packages to businesses. This set-up is crucial for businesses that might otherwise find it challenging to secure advantageous financing terms from banks wary of lending for international ventures. The program structure, wherein the financial institution establishes a loan agreement with the business, ensures that funding can be catered to the specific needs of different business scales and objectives.
The eligibility criteria for the EGP are designed to ensure that this solution is the right fit for businesses looking to expand or enhance their exporting capacity. Considerations include the volume of international sales, existing lending agreements, and other relevant business factors that demonstrate the potential for growth through increased financing support.
Overall, the Export Guarantee Program is a significant initiative supporting Canadian businesses in their quest for international success. It provides a strategic impetus for companies to optimize their operational efficiency, manage financial risks, and capitalize on global opportunities. By participating in this program, businesses not only secure necessary financial backing but also align their capabilities with global market demands, positioning themselves for sustainable growth and competitive advantage in the international arena.
