EDC — Foreign Exchange Facility Guarantee ### 📋 Eligible Entities - Canadian exporters actively engaged in international trade - Small and medium-sized enterprises (SMEs) with foreign exchange exposure - Large corporations with cross-border transactions - Businesses with EDC-approved financial institutions or foreign exchange service providers - Companies with demonstrated export revenue or committed foreign sales contracts - Entities with a valid business registration in Canada - Organizations with established banking relationships and credit history ### 💰 Funding Details - Coverage Type: 100% risk transfer guarantee (not a direct grant) - Contract Duration: Foreign exchange contracts up to 3 years - Collateral Requirement: None—no collateral posting required - Risk Transfer: EDC assumes 100% of the credit risk on eligible FX contracts - Cost: Guarantee fees apply (charged by financial institution based on risk profile) - Repayability: This is a guarantee facility, not a loan—repayment tied to underlying FX contract performance - Maximum Exposure: Determined per contract and negotiated with your financial institution ### 🛠️ Approved Expenses - Foreign exchange hedging on international sales and receivables - Currency protection for cross-border supply chain payments - FX forward contracts on committed export orders - Protection against currency fluctuations on foreign-denominated invoices - Working capital FX needs related to international operations - Multi-currency transactions covering 3-year periods ### ⚠️ Conditions & Milestones - Must work through an EDC-approved financial institution or FX service provider - Eligible contracts must be tied to documented business transactions (export sales, import purchases, or legitimate commercial exposure) - No collateral posting required, but credit assessment by financial institution still applies - Contracts limited to maximum 3-year term - Must maintain active export operations or demonstrable foreign exchange exposure - Financial institution conducts underwriting and determines final approval - EDC provides guarantee only—institution manages day-to-day contract administration - Businesses must comply with EDC