What’s new

EDC is committed to continually pursuing new ways to improve so we can better serve our financial institution partners. We also do it for you, so you can continue to build your existing client relationships and forge new ones as a trusted source of expert advice. Check here for the latest updates on resources for you and your clients as we refine and add to our suite of solutions.

In consultation with our partners, Export Development Canada (EDC) is continuing to streamline and improve the processes related to our suite of working capital solutions, to better support you by: 

• Decreasing the turnaround time on new deals, renewals and amendments 
• Reducing manual interventions and non-value activities 
• Responding to market conditions to better meet Canadian exporters where they are today and help them grow their business

Some key improvements we’ve recently made to our Export Guarantee Program (EGP), include:

• Adding a new section to the EGP amendment form to provide clarity on which scenarios require an EDC consent/amendment and which ones don’t 
• Increasing the EGP guarantee duration to 36 months for EGPs up to US$10 million
• Increasing our EGP guaranteed amount to US$25 million (from $10 million)
• For term loan support, increasing our maximum tenor up to 10 years (from eight years)

If you have general questions about the EGP, check out our FAQs, which are also available for the Account Performance Security Guarantee (APSG) and Foreign Exchange Facility Guarantee (FXG). Note: We’ve also been working with your head office to continue to optimize your financial institution’s (FI) internal policies and procedures for EDC solutions.  

In addition to the improvements mentioned above, we’re continuing to digitize our forms, bringing them from PDFs to web-based versions, and working to standardize all of our current guarantee product forms. In 2023 EDC looks forward to continued engagement with our financial institution partners.

The end of 2022 brings with it the end of EDC’s domestic powers and wind-down of the EDC Trade Recovery Guarantee. All remaining domestic powers—which were granted to EDC in response to the COVID-19 pandemic—will come to an end as planned on December 31, 2022 as EDC reverts to its traditional export mandate. This includes non-export applications for Select Credit Insurance (SCI), enhanced coverage for domestic Portfolio Credit Insurance (PCI) and ITG bonding opportunities where domestic powers were extended through 2022. All domestic policies currently in place, and new policies that become effective before Dec. 31, 2022, will be supported by EDC until their end date. In addition, the EDC Trade Recovery Guarantee, a temporary working capital solution, will be retired as of Dec. 31, 2022. 

In 2023 EDC looks forward to continued engagement with our financial institution partners.

Some of your exporting clients may be facing evolving conditions during this period—from pent-up consumer demand to increased costs due to inflation, supply chain disruptions and ongoing pandemic pressures. 

With the Business Credit Availability Program (BCAP) Guarantee ending for new loans on Dec. 31, 2021, Export Development Canada (EDC) has launched a new program to continue providing financial support to your clients as they get back to global business. We’re working diligently with your financial institution (FI) to determine if our new solution is a good fit for you. 

The EDC Trade Recovery Guarantee is an 80% guarantee by EDC to FIs on new operating lines or term loans. Its parameters and streamlined process are similar to the BCAP Guarantee, but the EDC Trade Recovery Guarantee is available exclusively to Canadian exporters. 

Further details and next steps will be provided from your FI, if they choose to proceed. To learn more, visit our new Solutions page or talk to your FI’s internal support team.

The onboarding period for the EDC BCAP Guarantee—which includes both the EDC BCAP Guarantee and the EDC BCAP Mid-Market Guarantee, will come to an end on December 31, 2021. As a result, EDC BCAP Guarantee coverage won’t extend to any new transactions after December 31, 2021. Effective Guarantees put in place prior Dec. 31, 2021 will continue to be guaranteed under the program for up to five years, according to the guarantee agreement. Please see our BCAP Guarantee FAQs for the latest details.

At the beginning of the pandemic, EDC deployed several temporary measures to support non-exporting businesses. Many of these measures have already come to an end. The remaining temporary measures, other than Trade Partnership Insurance and Select Credit Insurance, will come to an end on December 31, 2021 as we revert to our traditional mandate of providing financial and risk management solutions to Canadian exporting companies. The following products will no longer be available to non-exporting businesses as of Dec. 31, 2021: Export Guarantee Program (EGP), Account Performance Security Guarantee (APSG) and Foreign Exchange Facility Guarantee (FXG).

We recognize the impacts of COVID-19 continue to pose challenges and we remain committed to working closely with our FI partners to help Canadian businesses navigate these impacts. We are working diligently to ensure we have programs in place to continue to support Canadian exporters through this time, based on the feedback we have received.

The pandemic continues to impact and reshape Canadian companies with both challenges and opportunities. In the months ahead, we believe the EDC BCAP Guarantee will continue to play an important role in supporting these businesses as they adjust and recover.  To facilitate this, the program will continue to be available to support new qualifying clients and/or transactions until December 31, 2021.The deadline under the EDC BCAP Guarantee program was previously scheduled for June 30, 2021. This extension includes both the EDC BCAP Guarantee and EDC BCAP Guarantee Mid-Market programs. 

Jan 2021: New Oil and Gas (O&G) climate reporting requirement

EDC’s Climate Change Policy outlines its proactive and mandatory reporting approach for businesses aligned to the recommendations outlined by the Task Force on Climate-Related Financial Disclosures (TCFD).

Please let your O&G clients know about our tips and tools for creating a Climate Change Report including other helpful resources to help them meet EDC’s expectations for TCFD-aligned reporting.

Dec 2020: Temporary measures for COVID-19

Like the fluctuating economy, EDC’s solutions will continue to evolve. As of December 2020, some of the temporary measures have become permanent. These permanent measures now reflect EDC’s business moving forward and have been incorporated into our existing processes and standards. 

For complete details on what’s currently available to support your clients, please check out the temporary measure section of our Financial Institution Resource Hub. 

Sept 2020: FI section refresh

You may have noticed that the section of our website directed at our FI partners has changed. That’s because we want you to have the best resources possible to serve and enrich your client relationships. It was also important to us that we revamp this section to create a clearer, more user-friendly environment for you to access the tools you need for your business to flourish. We hope you like what you see—there will be much more to come!

Sept 2020: Temporary measures for COVID-19

Like the fluctuating economy, EDC’s solutions will continue to evolve. To help you meet your clients’ need for increased flexibility, access to cash flow, and tailored solutions while they navigate the pandemic’s impact on their business, EDC made short-term modifications to several of our products (March 2020). Some of those product modifications have now been withdrawn (as of September 30, 2020) and other measures have been extended (until December 31, 2020 or December 31, 2021). 

July 2020: EDC BCAP Guarantee enhancements

• EDC is extending support for new transactions until June 30, 2021. (The current cut-off date is September 30, 2020.)
  
• EDC is also extending the special conditions outlined in the Softening of Duty of Care of the Bank as a result of the COVID-19 Crisis section of the EDC BCAP Guarantee Approval until June 30, 2021.
• We will be inserting a clarification regarding the EDC BCAP Guarantee Use of Funds guidelines relating to dividend payments made by Indigenous community-owned corporations.
• New EDC BCAP Guarantee FAQs: More details in a new section called “When to use this solution”
• To share with your clients: EDC BCAP Guarantee brochure.
  
  

June 2020: Addressing increased risk in the foreign exchange market

• The FXG provides a 100% irrevocable and unconditional guarantee on the notional risk limit determined by your FI, helping you meet your customers’ needs without impacting their existing working capital.
  
• As part of the temporary measures enacted due to COVID-19, we’ve streamlined the FXG underwriting process for:
  • new requests of up to US/CAD$1 million;
  • increases on existing FXGs up to US$50,000 or 25% (whichever is higher) of the current facility amount, with a maximum of US/CAD$2 million; and
  • we offer a six-month payment deferral on FXG fees.
• Our pricing table has also been adjusted to align with the market and be more reflective of risk, which may mean lower fees for your EDC FXG clients, depending on their credit risk. 
• For further details and to discuss specific transactions, please reach out to your EDC account manager.
  
  

June 2020: Rethinking renewals for EDC’s Account Performance Security Guarantee

To better serve our customers, we reviewed the processes we have in place for EDC’s Account Performance Security Guarantee (APSG). We determined that, as of June 2020, we will no longer renew facilities that haven’t been used in the last 12 months, unless a specific upcoming need has been identified. All impacted clients and FI partners will be informed by email. Each email will have only two recipients: the account manager at your FI who has a client with this product, and the client who uses it. If you want to talk about any transactions or have any concerns, contact the relevant EDC account manager.

June 2020: Export Guarantee Program updates

When your customer wants more from an operating line of credit that uses the Export Guarantee Program (EGP)—such as an increase in the facility limit, or changes to the borrowing base terms that increase availability—but the request is more than your financial institution is comfortable with because of additional risk caused by the client’s increase in exports, EDC can help. If your customer has a BB- credit rating or better, we’ll consider guaranteeing up to 75% of the total facility, as long as the benefit to the customer (like a greater facility limit or adjusted terms) is clear.

June 2020: EGP approval timing 

Please note that due to a significant increase in volume, we have temporarily adjusted our standard EGP credit adjudication timing for EGP approvals to 15 business days for new requests and 20 business days for renewals.