Selling outside Canada creates pressure on cash flow and risk. Longer payment terms, foreign buyers, and upfront costs can stall growth—even when demand is strong. Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) help exporters finance expansion and reduce risk, so you can grow without giving up control.
Canada’s federal export system works with your bank. It does not replace your bank. The tools below are not grants. They are guarantees, loans, and project financing that make international growth possible when traditional lending does not meet your needs.
The EDC Export Guarantee Program helps you access more financing from your existing bank by reducing the bank’s risk.
How it works
Key details
This is a common way Canadian exporters finance growth without giving up ownership.
Many international contracts require bonds or standby letters of credit. These often tie up cash or collateral.
The Account Performance Security Guarantee helps solve this problem.
What it covers
Why it matters
This tool is useful for exporters in construction, manufacturing, engineering, and services.
For large international projects, standard loans may not be enough.
EDC Structured and Project Finance supports complex, high-value export projects.
Eligibility highlights
This option is designed for infrastructure, power, utilities, extractive industries, and major industrial projects.
While EDC focuses on risk-sharing, BDC provides direct financing to exporters facing external pressure.
The BDC Pivot to Grow Loan supports companies affected by trade uncertainty, including U.S. tariffs.
Key terms
This loan is often used with EDC guarantees for a stronger financing package.
Most successful exporters use both institutions together:
Tools like GrantHub’s eligibility matcher can help you filter programs by province, industry, and export activity in seconds.
Assuming EDC offers grants
EDC provides guarantees, insurance, and financing—not non-repayable grants.
Applying to EDC before talking to your bank
Most EDC guarantees are bank-led. Start with your account manager.
Waiting until cash flow is tight
These tools work best when planned before signing large export contracts.
Ignoring contract security requirements
Performance bonds and letters of credit can quietly drain working capital if not structured properly.
Q: Is EDC financing only for large exporters?
No. Many EDC tools support small and mid-sized businesses, as long as you have export activity and a bank relationship.
Q: Can I use EDC if I only export to the U.S.?
Yes. U.S. exports qualify as international business for EDC programs.
Q: Do EDC guarantees replace my bank loan?
No. Your bank still provides the loan. EDC shares the risk with the lender.
Q: Is the Export Guarantee Program always open?
Yes. The EGP is an ongoing program with year-round availability.
Q: Can BDC and EDC be used at the same time?
Yes. Many exporters combine BDC loans with EDC guarantees for stronger financing.
If your business is planning international growth, involve EDC and BDC early in your financing strategy. Start by talking to your bank about your export plans and ask about EDC guarantees. Review BDC loan options if you need direct financing for trade challenges. Use GrantHub to check federal and provincial export-related funding and financing programs across Canada. Make sure you know which options fit your export profile before meeting with your bank.
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