EDC — Surety Bond Insurance

📋 Eligible Entities - Canadian exporters and businesses pursuing international contracts - Small and medium-sized enterprises (SMEs) - Businesses seeking to bid on contracts or projects requiring performance bonds - Companies working with surety providers - Businesses in all sectors that require bonding to secure contracts ### 💰 Funding Details - Type: Surety bond insurance program (not a direct grant; risk mitigation tool) - Structure: EDC provides backing/guarantees to surety companies to increase bonding capacity - Cost: Businesses pay premiums to surety providers; EDC reduces insurer risk - Matching: No matching requirement from applicant - Repayability: Not a loan—bonds are insurance products with standard premium costs - Benefit: Improved access to bonding at potentially more favorable rates than without EDC backing ### 🛠️ Approved Expenses - Contract bonds (bid bonds, performance bonds, payment bonds) - Tender requirements for government or large commercial contracts - Project-based bonding for construction, service delivery, or supply contracts - International contract performance guarantees - Bonding capacity expansion to pursue larger or multiple contracts simultaneously ### ⚠️ Conditions & Milestones - Must work with an EDC-approved surety provider - Business must meet surety underwriting standards and credit requirements - Bonds are issued based on project-specific terms and surety assessment - Premiums and bond terms depend on business profile, contract value, and risk - Availability subject to surety company participation in EDC program - No guaranteed approval; surety makes final bonding decisions - Typical timeline: application and approval within weeks, depending on contract complexity - Must maintain ongoing relationship with surety provider for bond maintenance