If your Canadian business exports goods or services, getting enough working capital can be tough. The EDC Export Guarantee Program (EGP) helps Canadian exporters get more financing from their bank by sharing risk with your lender. Instead of lending money to you directly, Export Development Canada (EDC) gives your bank a guarantee, making it easier for your bank to approve or increase your credit.
The EDC Export Guarantee Program is not a grant. It is a federal guarantee that supports loans, lines of credit, or other bank financing.
Here’s how it works:
EDC guarantees part of your bank’s financing
EDC shares the risk with your bank. This makes your bank more comfortable lending to Canadian exporters.
Your bank is your main contact
You do not apply directly to EDC. Your bank account manager works with EDC to set up the guarantee.
Funding supports export-related working capital
You can use the financing for inventory. It also covers receivables, supplier payments, and costs linked to growing your international sales.
Because the guarantee is behind the scenes, many businesses use EGP without knowing their loan is supported by EDC.
To use EGP through your bank, your business must meet several requirements.
Typical eligibility includes:
Startups may qualify sometimes, but EGP usually works best for companies with export experience and established financials.
GrantHub’s eligibility matcher can help Canadian exporters check if their business fits EDC-backed financing programs.
The application process starts with your bank. Here are the steps:
Talk to your bank account manager
Tell them you are exporting or expanding internationally and need more working capital.
Your bank reviews your needs
They will look at your cash flow, export contracts, receivables, and growth plans.
Your bank contacts EDC
If EGP is a good fit, your lender sends a request to EDC for a guarantee.
EDC and your bank review your business
Both check your risk, export exposure, and business stability.
Financing is issued with an EDC guarantee
If approved, your bank gives you a new or larger credit facility with EDC sharing the risk.
There is no public deadline. EGP is open all year, as long as your bank and EDC approve your application.
EDC does not set a fixed maximum for the Export Guarantee Program. The amount depends on:
In most cases, EGP supports six- or seven-figure credit facilities for established exporters. The exact amount is decided case by case.
Canadian exporters and their banks should keep these points in mind:
1. Thinking EGP is a grant
The Export Guarantee Program is repayable financing. You must repay your bank.
2. Contacting EDC before your bank
Applications start with your financial institution. If you contact EDC first, they will usually send you back to your bank.
3. Waiting until cash flow is a problem
EGP works best when planned before export growth. It is not meant as an emergency fix.
4. Not showing how financing supports exports
Your bank and EDC need to see that the money will help your international sales or expansion.
All advice here is specific to Canadian exporters and Canadian banks.
Using tools like GrantHub can help you find other programs that may work well alongside EGP.
Q: Do I apply directly to EDC for the Export Guarantee Program?
No. Applications must go through your Canadian financial institution, which works with EDC for you.
Q: Is the EDC Export Guarantee Program non-repayable?
No. This is not a grant. The program guarantees bank financing, which you must repay under your loan or credit agreement.
Q: Can the EGP be used for domestic expenses?
Yes, if those expenses help your export activity. This includes inventory, staffing, or supplier payments tied to international sales.
Q: Can Canadian startups access the Export Guarantee Program?
Some may qualify, but EGP usually requires active export business and a good banking relationship.
Q: Does EGP replace other EDC products?
No. You can use EGP with other EDC solutions, like credit insurance or bonding, if needed.
All answers here are for Canadian exporters and Canadian banks.
If your Canadian business is exporting or planning to grow internationally, the EDC Export Guarantee Program can help you get bank financing without giving up ownership or control. Start by talking to your bank about your export plans. Then, look into other export funding and support programs that could work with EGP. GrantHub helps Canadian businesses find and compare these opportunities by industry, province, and growth plans.
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