This program is a great opportunity for your business to secure the financing you need to grow and manage your operations. By participating, you can access up to $25 million in guarantees, which can help your financial institution extend your line of credit, provide term loans, or margin international assets or inventory.

Key Benefits:

• Manage Cash Flow: Increase your operating line, get seasonal bulge financing, or pre-shipment financing to handle day-to-day costs.
• Expand Internationally: Obtain funds to enter new markets, purchase new equipment, or position your inventory closer to buyers.
• Support Investments: Increase borrowing capacity to support international investments, such as setting up affiliates or expanding businesses abroad.

The Export Guarantee Program shares the risk with your financial institution, making it easier for you to get the financing you need. This program is designed to help you grow your business with confidence and ease.

Type of Financing: Loan Guarantee

Repayment Terms and Interest Rates:

• The Export Guarantee Program (EGP) provides guarantees of up to US $25 million to your financial institution.
• The guarantee encourages your financial institution to extend your line of credit, provide term loans, or margin international assets or inventory.
• The specific repayment terms and interest rates will be determined by your financial institution based on your creditworthiness and the loan agreement.

Eligible Expenses:

• Working capital financing to manage day-to-day operating costs.
• Financing to expand sales into new markets.
• Purchasing new equipment.
• Locating inventory closer to buyers.
• Supporting international investments, such as setting up an international affiliate or acquiring/expanding a business in a global market.

Ineligible Expenses:

• The funds cannot be used for domestic investments or expenses unrelated to international business activities.

Fees:

• Fees are determined based on your credit rating, the duration of coverage, and the amount of financing needed. Specific fee details will be provided by your financial institution.

The Export Guarantee Program helps your business get the financing it needs by working with your financial institution. You can receive guarantees of up to $25 million. This means your bank can extend your line of credit, provide term loans, or use your international assets or inventory as collateral.

Use the money to:

• Manage day-to-day operating costs
• Expand sales into new markets
• Buy new equipment
• Position your inventory closer to buyers
• Support investments outside of Canada, like setting up an international affiliate or expanding a global business

How it works:

• The program shares the risk with your financial institution, encouraging them to lend you more.
• The guarantee amount varies based on the type and size of the loan.
• Your total coverage is capped at $25 million.
• Fees are based on your credit rating, the duration of coverage, and the amount of financing needed.

This program is a great opportunity to increase your access to working capital, helping you grow and manage your international business more effectively.