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Master Pre-Shipment Financing Guarantee Agreement

The Pre-Shipment Financing Program is a partnership between the province’s Business Investment Corporation (BIC) and Export Development Canada (EDC) to provide new and expanding small businesses with access to loans for working capital or for the acquisition of fixed assets needed to complete export contracts (i.e.contracts to supply goods or services outside of Canada). EDC provides a risk-sharing guarantee to BIC, which in turn provides a pre-shipment loan, with a view to assisting businesses in their efforts to open new markets and thus expand their businesses.

Who Can Apply

Although all small and medium-sized businesses located and operating in Newfoundland and Labrador, including corporations, co-operatives and other similar structures, are eligible to apply, the program will target strategic growth sectors, such as manufacturing, information technology, secondary processing, aquaculture, bio-tech, marine services, knowledge-based industries and agrifoods.

The applicant must clearly demonstrate that it has the appropriate financial structure and the overall management ability and technical expertise required to complete the project. In addition, the applicant must provide written confirmation that it is in possession of an export contract for goods and services, which meets EDC’s environmental and Canadian Benefits Policies, and that it has applied for EDC’s Credit Insurance.

Available Funding

The program may provide assistance up to $500,000 in the form of an interest-bearing loan with all normal security taken for working capital financing including an assignment of the credit insurance. If approved, the loan will not be disbursed until the applicant provides written confirmation of EDC Credit Insurance along with a signed assignment of the insurance to BIC.

How To Apply

Concurrent with an application for Credit Insurance, which may be obtained by contacting EDC

Export Development Canada

Head Office
151 O’Connor
Ottawa, ON
Canada
K1A 1K3

Toll Free: 1-888-332-3777

Web: http://www.edc.ca

To Find Out More

Eligible exporters should contact any office of the Department of Innovation, Business and Rural Development. For assistance call 1-800-563-2299 or contact the IBRD office nearest you.