EDC — Performance Security Insurance
Canada
Protection against letter of guarantee losses
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateJuly 01, 2024
- grant_single|closingDateJuly 09, 2024
grant_single|financingType
Other Support
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Government of Canada
- Export Development Canada (EDC)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Protect your cash flow, get coverage of up to 95% of your insured losses if a customer wrongfully calls a letter of guarantee or if a call is triggered by you not being able to meet your obligations due to specific political risks.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$760,000
Calgary
Financial coverage for the export of medical equipment to Turkey
$475,000
Vancouver
Coverage for wrongful calls of guarantee on exported agricultural machinery to Russia
$570,000
Ottawa
Coverage on exporting IT solutions to Nigeria
$1,425,000
Edmonton
Protection against wrongful calls for exported clean energy technology to India
$1,140,000
Montreal
Protection against wrongful calls for a construction project in Brazil
$1,900,000
Toronto
Coverage for wrongful calls on a renewable energy project in Mexico
grant_single_labels|admissibility
Eligibility is determined by EDC based on review of the letter of guarantee, conditions and economic outlook in your customer’s country, and the customer’s profile.
- Review of the letter of guarantee
- Conditions and economic outlook in the customer’s country
- Customer’s profile
grant_eligibility_criteria|who_can_apply
Eligible companies for this grant must meet the criteria set by EDC, including having a letter of guarantee, a stable economic outlook in their country, and a suitable customer profile.
- Companies with a letter of guarantee
- Companies with a stable economic outlook in their country
- Companies with a suitable customer profile
grant_eligibility_criteria|eligible_expenses
There are eligible expenses for this grant. The summary of eligible expenses includes:
- Commercial risks coverage for wrongful or excessive calls of the bank instrument by the counterparty
- Political risks coverage for rightful calls due to non-performance under the contract related to war, government actions, or acts of God
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. Eligibility is determined by EDC based on a review of the letter of guarantee, conditions and economic outlook in the customer’s country, and the customer’s profile. Commercial risks include wrongful or excessive calls of the bank instrument by the counterparty, while political risks involve rightful calls due to non-performance under the contract based on specific events.
- Review of the letter of guarantee
- Conditions and economic outlook in the customer’s country
- Customer’s profile
- Commercial risks: wrongful or excessive calls of the bank instrument
- Political risks: rightful calls due to non-performance under the contract based on specified events
grant_single_labels|register
- Step 1: Submit the letter of guarantee for review by EDC
- Content: Provide the necessary documentation for EDC to assess eligibility
- Implications: EDC will evaluate the conditions, economic outlook, and customer profile
- Step 2: Wait for EDC's decision on eligibility
- Content: Await the review process by EDC
- Implications: EDC will determine if the application meets the criteria for the grant
- Step 3: Address any additional requirements if needed
- Content: Fulfill any additional conditions requested by EDC
- Implications: Ensure compliance with EDC's criteria for approval
Apply to this program
Grant Summary
This grant provides financial protection to Canadian companies exporting goods or services by guaranteeing payments from international buyers. Eligibility is determined based on factors like the customer's profile and economic outlook in their country.
Understanding the Export Development Canada (EDC) Guarantee Program
The Export Development Canada (EDC) Guarantee Program offers a valuable risk management tool for Canadian exporters. By providing a guarantee of payment, this program helps mitigate commercial and political risks associated with exporting goods or services to international markets.
Eligibility for the program is determined by EDC through a thorough review of the customer's profile, the economic conditions in their country, and the details of the transaction. Commercial risks covered by the guarantee include wrongful or excessive calls on bank instruments by the counterparty, based on contractual terms and bid processes.
Political risks, such as war-related disturbances, permit cancellations, or government actions that affect payment obligations, are also addressed under the program. This ensures that Canadian exporters are protected from unforeseen events that could impact their international trade transactions.
Overall, the EDC Guarantee Program serves as a safety net for Canadian exporters, giving them the confidence to pursue international business opportunities while minimizing the financial risks involved. By leveraging this program, exporters can navigate global markets more securely and expand their reach with greater peace of mind.
