EDC — Assurance pour cautionnement bancaire ### 📋 Eligible Entities - Canadian exporters and businesses engaged in international trade - Small, medium, and large enterprises (SMEs and larger corporations) - Companies requiring bank guarantees or letters of credit for international contracts - Businesses with cross-border payment obligations - Trade finance participants seeking risk mitigation on performance bonds ### 💰 Funding Details - Coverage Level: Up to 95% of insured losses - Product Type: Insurance/Guarantee protection (not a grant or loan) - Repayability: Not applicable—this is insurance coverage with premiums paid by the insured party - Cost Structure: Premium-based product (costs vary by risk profile, contract value, and coverage scope) - No matching requirement: Standalone insurance product ### 🛠️ Approved Expenses This is a risk mitigation insurance product, not direct funding. Coverage applies to: - Protection against wrongful calls on bank guarantees or letters of credit - Coverage for inability to meet contractual obligations due to insured risks - Performance bond protection - Bid bond and tender guarantee coverage - Export contract financial security requirements - Cross-border trade payment obligations ### ⚠️ Conditions & Milestones - Applicant Must: Have a valid international trade contract or obligation requiring a bank guarantee - Risk Assessment: EDC evaluates creditworthiness and contract terms before issuing coverage - Premium Payment: Ongoing premiums required to maintain active coverage - Claims Process: Losses must be documented and verified; EDC pays up to 95% of eligible insured losses - Coverage Limits: Subject to contract value and risk exposure assessment - Documentation Required: Contract terms, bank guarantee documents, and evidence of loss triggering event - No Timeline Restrictions: Coverage remains active as long as premiums are paid and underlying obligations exist