Domestic Finance

Working with other financial institutions, EDC can now provide more support to meet the working capital and domestic financing needs of Canadian companies involved in trade-related sectors of the economy.

Partnering with Canadian financial institutions
EDC’s financing is available to qualified Canadian companies in the form of direct loans to your company, which are made alongside loans from your financial institution, co-lending or guarantees given to your financial institution to enable them to better meet your financing needs.

EDC is also partnering with the Business Development Bank of Canada (BDC) and Canada’s private sector financial institutions through the Business Credit Availability Program (BCAP), where together we can make credit available to meet the needs of Canadian companies. For more information on BCAP click here.

Financing capacity to support more companies
Another way EDC can support the financing needs of Canadian companies is through our Export Guarantee Program (EGP), which provides a guarantee to your financial institution so that they can extend additional credit to you. Over the next two years, this program is now available to meet the needs of Canadian companies involved in export trade who may not meet our traditional exporter criteria of $5 million in export sales or 15% of total sales derived from exports.

EDC’s expanded domestic powers were enacted in mid March. By June 30 EDC had provided $646 million in financing for Canadian business. For more information on these transactions, click here.

Guidelines & eligibility
EDC’s capacity will be available through financial institutions, which will generally assume a larger portion of the risk than EDC.

To qualify, your financial institution must be willing to establish a credit arrangement with your company and participate in the financing.
EDC financing support is largely directed at trade-related sectors of the economy where EDC can bring its expertise such as transportation, mining, resources, light manufacturing, and information technology.
EDC won’t participate in equity for domestic-oriented companies.
Transactions in specialized sectors of retail, wholesale, tourism, entertainment and real estate are not eligible for support.
Infrastructure financing, projects like hospitals, schools and other social infrastructure are not eligible, as they are addressed by other federal and provincial stimulus packages. However, they may still be eligible for support under EDC’s bonding program.

Who to contact
Companies should first ask their bank about EDC or BDC financing support for their Canadian operations. You can also contact BDC or EDC for more information. Companies with annual revenues of $50 million or less should contact BDC, and those with annual revenues of more than $50 million should contact EDC.

Current EDC customers can contact their EDC account manager, or call 1-866-283-2957 weekdays between 8 a.m. and 6 p.m. EST, or submit an inquiry online.

More information on EDC’s domestic financing, bonding and credit insurance here.