Broader mandate will help more companies brave the challenges of these extraordinary times
- The Government of Canada has enabled domestic powers for Export Development Canada (EDC) during the COVID-19 crisis.
- This broader mandate and scope will enable EDC to provide emergency liquidity for micro-, small- and medium-sized domestic companies through Canadian financial institutions and private credit insurers.
- Through the Business Credit Availability Program (BCAP), EDC will guarantee new operating credit and cash-flow term loans that financial institutions extend to small- to medium-sized enterprises, up to $6.25 million. The program cap for this guarantee will be a total of $20 billion for export sector and domestic companies.
To further help Canadian businesses facing extreme financial challenges brought on by the global response to coronavirus (COVID-19), the Government of Canada has expanded EDC’s domestic capabilities until December 31, 2021, effective immediately.
“EDC has 75 years of experience supporting Canadian businesses as they pursue international opportunities,” said EDC President and CEO Mairead Lavery. “Today, working with the Business Development Bank of Canada (BDC), we’re excited to expand our support to companies focused domestically, helping them get through this incredibly challenging time.”
Broadening EDC’s mandate and scope of activity will enable EDC to help Canada’s financial institutions provide financing and credit solutions to domestic-oriented businesses, helping even more Canadian companies raise the credit necessary to survive this unprecedented crisis.
“Canadian businesses, especially small in size, are the backbone of our economy and are at the heart of our communities across the country,” said Minister of Small Business, Export Promotion and International Trade, Mary Ng. “By expanding EDC’s capabilities within Canada, we will be able to give more direct support to businesses and entrepreneurs who need it most in the face of COVID-19.”
These measures are on top of those included in the previously announced Business Credit Availability Program (BCAP), which, on account of EDC’s temporarily broadened mandate, is now open to all Canadian businesses regardless of their exporting status.
The Government of Canada will also endeavor to ensure that micro- and small- sized businesses have access to the capital they need to see them through the current challenges with the creation of the $25-billion Canada Emergency Business Account program.
Through this program, Canada’s financial institutions will be providing emergency liquidity support to micro- and small- sized businesses affected by COVID-19. Businesses can access loans of up to $40,000 to cover non-deferrable costs such as payroll, rent, insurance and utilities.
These financial products will be available to existing business clients of the financial institutions, that can be contacted for more information.
Export Development Canada (EDC) and the Business Development Bank of Canada (BDC), both of which are financially sustainable Crown corporations, are working together to respond to the needs of Canadian companies during the COVID-19 pandemic. Working in partnership with the Government of Canada and private and public sector partners, they are using each other’s strengths and products and services to help Canadian businesses navigate these extraordinary times. Together, they will help provide emergency economic relief to mitigate the economic impact on Canadian businesses.
Customer Support/Access to information
- New to EDC and seeking more information? Please call 1-800-229-0575 or tell us how we can help here.
- Current EDC customers needing working capital and financial solutions should contact their account manager.
- Existing customers needing any assistance with insurance products and online portals should contact 1-866-716-7201 and support@edc.ca.
- If you require additional support or are seeking more information, you can visit the Government of Canada website Resources for Canadian Businesses for the latest updates on relief measures available to Canadian businesses.
For more information on BCAP: https://www.canada.ca/en/department-finance.html