EDC — Export Guarantee Program
At a glance
- No Condition
- Open Date : November 14, 2019
- All industries
- Export Development Canada
- Government of Canada
Overview
Eligibility criteria
To be eligible for this grant, your company must have a financial institution willing to establish a loan agreement and meet the following criteria:
- Your company must have a track record of international sales.
- Your financial institution must agree to the terms of the Export Guarantee Program.
Who is eligible
Eligible companies for the Export Guarantee Program include:
- Companies looking to increase access to financing for international sales
- Businesses willing to establish a loan agreement with a financial institution
Eligible expenses
There are eligible expenses for the Export Guarantee Program:
- International sales-related expenses
- Asset financing expenses
- Facility size-related expenses
Eligible projects & activities
There are specific projects or activities eligible for the Export Guarantee Program (EGP):
- Export contracts, sales or agreements
- International investments in foreign markets
- Expansion or foreign ownership financing
- Working capital loans for export-related projects
Evaluation & selection criteria
Evaluation and selection criteria for the Export Guarantee Program:
- Amount of international sales produced over time
- Financial institution's lending agreement
- Other relevant factors considered by EDC
How to apply
- Step 1: Contact Export Development Canada (EDC) and inquire about the Export Guarantee Program (EGP)
- Step 2: Provide EDC with information about your company's international sales history and the lending agreement with your financial institution
- Step 3: EDC will evaluate your eligibility for the EGP based on the provided information
- Step 4: If eligible, work with your financial institution to establish a loan agreement under the EGP
- Step 5: Determine the value of the guarantee based on the type and size of the loan
- Step 6: Agree on fees based on your credit rating, coverage duration, and financing amount
Export Guarantee Program Summary
The Export Guarantee Program (EGP) provides a guarantee to your financial institution to share the risk and security, encouraging them to increase your access to necessary financing. Qualification requires your FI to establish a loan agreement with your company, and the guarantee value varies based on the loan type and size.
Export Guarantee Program Explained
The Export Guarantee Program (EGP) offered by EDC is a valuable tool for businesses looking to expand their international sales by facilitating access to financing. The program works by providing a guarantee to your financial institution, reducing their risk and incentivizing them to lend to your company.
To qualify for the EGP, your FI must be willing to enter into a loan agreement with your business. The guarantee value is determined based on factors such as the type and size of the loan, with the maximum percentage guaranteed depending on the assets being financed and the facility size.
Under the EGP, your total coverage is capped at a US $25 million exposure, allowing for substantial financial support. Additionally, fees for the program are calculated based on your credit rating, the duration of coverage needed, and the amount of financing required.
EDC carefully evaluates each application to ensure the Export Guarantee Program is the best fit for your business. They consider factors such as your history of international sales, the lending agreement with your FI, and other relevant aspects to provide you with the optimal financing solution.
