Export Guarantee Program – Export Development Canada (EDC) (2022)

Description:

Through the Export Guarantee Program EDC shares the risk with the applicant’s bank by providing a guarantee on the money he borrows, increasing access to working capital in order to grow on foreign markets.

Comments on Funding:

It is a risk sharing guarantee. EDC’s total exposure under one or multiple guarantees in support of one’s business cannot exceed $10 million (USD).

When a financial institution’s customer wants more from their operating line of credit (such as an increase in facility limit, or consideration of other changes to terms), but the request is more than the financial institution is comfortable with, EDC will consider guaranteeing up to 75% of the total facility, if benefit to the customer is clear. 

The Export Guarantee Program guarantee fee is a flat fee calculated on the guaranteed amount using an EDC risk-based pricing grid together with the applicant’s financial institution’s estimate of the projected usage of the facility (for revolving lines). A setup fee of 25 basis points is applied to a guarantee greater than $500,000.

Eligibility:

The applicant must:

  • EDC looks at the amount of international sales applicants have produced over time and their financial institution’s lending agreement, as well as other factors.

Applications Steps:

Documentation Needed:

Applicants should contact EDC to discuss their business needs (those new to EDC must call at 1-800-229-0575 or complete the Product Inquiry form; existing customer must contact their EDC account manager to discuss their business needs).

Other Things to Note:

We’ve adjusted the EGP so that until December 31, 2021, EDC will consider supporting companies manufacturing personal protective equipment (PPE) and related COVID-19 medical supplies. The end buyer of the goods must be a provincial or federal government, or one of their agencies or divisions, or is otherwise an exporter.

Testimonials:

HockeyShot: A top-shelf approach to selling internationally

Ciele Athletics: Performance, protection and seamless style

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