Export Guarantee Program

By mmuise
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.

Deadline: -
Eligibility:

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.

Application Steps:

The applicant must:

1. complete the application form, sign it together with the borrower and the guarantors,

2. e-mail the form to the borrower to complete the Borrower profile ang sign it,

3. Submit the above-mentioned and the required documentation to EDC.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

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About the author
mmuise