Domestic Surety Bonding and Bank Guarantees
To create more capacity in the marketplace, we have partnered with Canadian financial institutions, bonding and surety companies so that they can provide you with the bonding solutions you need to support your domestic business. This was made possible when the Government of Canada extended our ability to provide this support. Our domestic powers have been extended by another year to March 12, 2014 or until such time that new regulations are adopted.
Through this partnership, we can provide re-insurance to surety companies for bonds they provide to cover your domestic business. We can also provide bank guarantees for your domestic business. This can help free up your credit capacity as our bank guarantees can replace the collateral your financial institution usually requires when they post a performance guarantee on your behalf.
Guidelines and Eligibility
- Our domestic bonding solutions are available to qualified Canadian companies involved in trade-related sectors of the economy.
- We can only facilitate new and incremental commitments; not existing surety bonds or bank guarantees.
- We will only consider surety bonds and bank guarantees related to contract performance (including advance and progress payments, performance, labour and material).
- We can provide up to a maximum of 50 per cent risk sharing to our surety partners.
- Your company must be an existing client of the surety or the financial institution that is seeking additional capacity from EDC.
Who to contact
Companies should direct all domestic surety requests to private surety providers. The Surety Association of Canada
can help you learn more about the surety services available in Canada.
For domestic bank guarantees, talk to your bank, or complete an inquiry online.
The above information describes, in general, EDC services and is not a commitment to provide them. Only the documentation supplied by EDC, in connection with any transaction, provides the full detail and terms and conditions.
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