EDC — Performance Security Insurance

Q: How much funding can be received?

There is no informations about how much funding can be received.

Q: What is the deadline to apply?

The application deadline for this grant program was July 9, 2024.

Q: Is the EDC — Performance Security Insurance a grant, loan, or tax credit?

EDC — Performance Security Insurance is a Other Support

Q: Who are the financial supporters of the EDC — Performance Security Insurance?

EDC — Performance Security Insurance is funded by Export Development Canada (EDC), Government of Canada

Q: Who is eligible for the EDC — Performance Security Insurance program?

To be eligible for the EDC — Performance Security Insurance program, you must: • Eligibility determined by EDC review of the letter of guarantee • Consideration of conditions and economic outlook in the customer’s country and customer profile

Q: Who can I contact for more information about the EDC — Performance Security Insurance?

You can contact Export Development Canada (EDC).

Q: Where is the EDC — Performance Security Insurance available?

The EDC — Performance Security Insurance program is available across Canada.

Last Update: July 29, 2025

Canada

Protection against letter of guarantee losses

At a glance

Eligible Funding

No Condition

Timeline

Open Date : July 1, 2024
Closing date : July 9, 2024

Financing Type

Other Support

Eligible Industries

All industries

Funds Providers

Unspecified

Program status

Open

Overview

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.

Activities funded

Participation in international contracts or tenders requiring performance guarantees.
Engagement in export projects where performance security is requested by a foreign counterparty.
Execution of contractual obligations abroad that may be exposed to commercial or political risks.

Examples of admissible projects:

$ 760,000

Financial coverage for the export of medical equipment to Turkey

$ 475,000

Coverage for wrongful calls of guarantee on exported agricultural machinery to Russia

$ 1,900,000

Coverage for wrongful calls on a renewable energy project in Mexico

$ 1,140,000

Protection against wrongful calls for a construction project in Brazil

$ 570,000

Coverage on exporting IT solutions to Nigeria

$ 1,425,000

Protection against wrongful calls for exported clean energy technology to India

Eligibility

Eligibility is determined following Export Development Canada's (EDC) review of the letter of guarantee.
Consideration is given to the conditions and economic outlook in the customer’s country and the customer’s profile.

Who is eligible?

Companies seeking to insure performance security instruments for export contracts
Businesses exposed to commercial and political risks in international markets

Eligible expenses

Amounts relating to losses incurred due to wrongful or excessive call of a bank instrument by the counterparty, as outlined in a signed contract or bid process.
Amounts associated with rightful call of the bank instrument by the counterparty resulting from war, cancellation or non-renewal of export or import permits, government actions, or acts of God occurring outside of Canada.

Selection 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

How to apply

Prepare Documentation

Review the terms and conditions of the letter of guarantee.
Analyze the economic outlook in your customer’s country and assess the customer’s profile.
Identify and document both commercial risks and political risks associated with the project.

Contact EDC

Reach out to EDC representatives to confirm your eligibility based on the prepared documentation.
Seek clarification on any specific requirements or additional documents needed.

Complete Application Forms

Obtain and fill out the necessary application forms provided by EDC.
Ensure all information is accurate, complete, and aligns with your initial documentation.

Submit Application

Compile all completed forms and supporting documents such as the letter of guarantee and risk assessments.
Submit the application package via EDC’s designated submission channel, which may be an online portal or physical mail.

Acknowledge Receipt

Upon submission, note any confirmation or application reference number provided by EDC.
Keep records of all submitted documents and confirmations for future reference.

Additional information

Coverage may include both commercial and political risks associated with performance security instruments.
Risk assessment is influenced by country conditions and the specific profile of the counterparty.
Issues related to unresolved commercial disputes between the customer and the counterparty are noted in risk evaluation.
Acts of God occurring outside Canada may impact coverage eligibility under political risks.

Documents and links

EDC — Performance Security Insurance

Apply to this program

Frequently Asked Questions about the EDC — Performance Security Insurance Program

Here are answers to the most common questions about the EDC — Performance Security Insurance. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.