EDC — Export Guarantee Program
Canada
Maximize your access to working capital
grant_single|update January 24, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateJuly 9, 2024
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
- Wholesale trade
- Finance and insurance
grant_single|grantors
- Export Development Canada (EDC)
- Government of Canada
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|terms_and_conditions
The Export Guarantee Program provides various financing modalities designed to enhance your financial institution's ability to support your export activities. These modalities aim to effectively manage cash flow, support international expansion, and bolster international investments.
- Guarantees of up to US $25 million to your financial institution to extend lines of credit, provide term loans, or margin international assets or inventory.
- Flexible financing options to manage day-to-day operating costs, including increases to operating lines, seasonal bulges, or pre-shipment financing.
- Access to additional financing for expanding sales into new markets, purchasing new equipment, or positioning inventory closer to buyers.
- Increased borrowing capacity to support international investments, such as setting up an international affiliate or expanding an existing business in a global market.
grant_single_labels|projects
The Export Guarantee Program (EGP) provides financial solutions supporting businesses in managing cash flow, growing international sales, and investing in global markets. Eligible activities under this program include various financing options facilitated through financial institutions.
- Obtaining working capital financing for operating costs, including an increase in operating lines, seasonal bulges, or pre-shipment financing.
- Accessing financing to expand into new international markets, purchase new equipment, or strategically position inventory closer to international buyers.
- Increasing borrowing capacity to support investments such as establishing or expanding international affiliates or businesses abroad.
grant_single|admissibleProjectsExample
$ 400,000
Financing the expansion of export operations for a tech startup
$ 900,000
Development of a new logistics hub for food exports
$ 150,000
Financing an international marketing campaign for a small winery
$ 600,000
Establishing a new trade office for apparel exports to Asia
$ 1,200,000
Investment in renewable energy projects for international expansion
$ 250,000
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_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|apply
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
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