Accord Financial and Export Development Canada Introduce Trade Recovery Guarantee Program

While the business credit availability program (BCAP) guarantee officially ended on Dec. 31, 2021, Accord Financial and Export Development Canada (EDC) understand that there are still challenges brought on by the COVID-19 pandemic, such as supply chain issues, labor shortages and, most recently, high inflation.

As a result, Accord Financial is continuing to partner with EDC to offer solutions to help Canadian exporters access the financing they need to manage through the current uncertainties in the business environment and to get back on track for growth. As part of the continued partnership, Accord and the EDC are providing a trade recovery guarantee program that gives qualifying businesses access to up to $6.25 million in additional working capital.

The working capital from the program is available through operating lines of credit or term loan facilities. EDC will provide a guarantee to Accord for 80% of the value of the loans. The program, which will run until the end of 2022, will also have a streamlined process for smaller businesses requiring up to $1 million. In addition, the program will include credit facilities for terms up to 60 months. In terms of fees, the 1.8% EDC guarantee fee can be deferred six months and there are no EDC set-up fees.

Borrower for the program must qualify as either a direct, indirect or future exporter and be a Canadian corporation. Borrowers using the program cannot use proceeds to repay, refinance or make an unscheduled reduction in an existing credit facility. However, proceeds borrowers may use proceeds to make regularly scheduled lease or loan payments on existing credit facilities.

Previous
Previous

Exeter Finance Renews Contract with Solifi

Next
Next

King Trade Capital Provides $3MM PO Finance Facility to Housewares Company