EDC — Export Guarantee Program
Last Update: January 24, 2025
Canada
Maximize your access to working capital
EDC — Export Guarantee Program at a glance
Eligible Funding
- No Condition
Timeline
- Open Date : July 9, 2024
Financing Type
Loans and Capital investments
Eligible Industries
- Manufacturing
- Wholesale trade
- Finance and insurance
Grant Providers
- Export Development Canada (EDC)
- Government of Canada
Status
Open
Overview of the EDC — Export Guarantee Program program
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.
Financing 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.
Eligible projects & activities
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.
Examples of admissible projects:
$ 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
Eligibility criteria of the EDC — Export Guarantee Program program
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.
Who is eligible?
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.
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.
Eligibility criteria of the EDC — Export Guarantee Program program
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
How to apply to the EDC — Export Guarantee Program program
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.
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.
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.
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.
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.
Additional information
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.
Contact Export Development Canada (EDC)
1-800-229-0575
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