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EDC export guarantee program used by more SMEs


OTTAWA, Ont.–More than 630 small- to medium-sized enterprises (SMEs) used Export Development Canada’s (EDC) Export Guarantee Program (EGP) in 2015, a 15 per cent increase over 2014.

The increase was driven, in part, by an evolution in the EGP’s level of coverage. Beginning in late 2014, EDC began guaranteeing up to 100 per cent of a bank’s loan to a Canadian SME, up from the previous limit of 75 per cent. As a result, the program surpassedCAD 1 B in annual volume for the first time in 2015.

“The EGP is a difference maker because it makes it much easier for banks to say ‘yes’ to the financing requests of Canadian SMEs,” said Bruce Dunlop, Vice President, Commercial Markets and Small Business, EDC.

“Regular access to financing is critical for SMEs to grow their business through trade, but global economic conditions continue to challenge domestic lenders when they consider providing trade financing. The EGP addresses the needs of the SMEs and their banks, so everybody wins.”

The EGP is a risk-sharing guarantee that EDC provides to the bank of an exporter. It assures the bank that a percentage of a loan it provides to an exporter will be repaid. With the guarantee in place, banks can feel more comfortable lending larger amounts to Canadian companies, whether they are already exporters or planning to become exporters.

“The rise in demand from Canada’s SMEs speaks to the versatility and flexibility of the EGP, which can be tailored to meet a small company’s needs,” added Dunlop. “The EGP is designed to meet the unique needs of SMEs when they want to break into new markets or purchase new equipment to take on important orders, or to support their international investments.”


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