EDC — Account Performance Security Guarantee (APSG)

Insider Tip

The APSG is initiated through your bank, not directly through EDC — call your business banking relationship manager first and ask if they participate in the EDC APSG program. Major Canadian banks (RBC, TD, BMO, Scotiabank, CIBC, National Bank) and many credit unions are participating lenders. Pre-approval is available before you win a contract, so set it up proactively before bidding on international projects. There is no setup cost — you only pay when a letter of guarantee is actually issued, and the monthly rate is pre-negotiated. Critically, APSG guarantees do NOT count toward the 75% government assistance stacking cap, so they can be layered on top of IRAP, CanExport, and other grants.

Rejection Pitfalls 6

• Business has no export activity or credible export plans
• Foreign buyer or contract involves a sanctioned country or jurisdiction
• Company has unacceptable credit risk (weak financials, history of defaults)

Success Profile

Canadian manufacturer, construction firm, or technology company that wins international contracts requiring performance bonds or bid bonds. Most valuable for businesses with multiple simultaneous export contracts that would otherwise tie up significant collateral in letters of guarantee. Particularly relevant for defence, energy infrastructure, and large-scale construction exporters.

Evaluation Criteria

EDC evaluates APSG applications on three dimensions: (1) Company assessment — financial health, management capability, technical capacity, and export track record; (2) Contract assessment — nature of the performance security required, contract value, and deliverables; (3) Country risk — EDC's proprietary risk rating of the foreign buyer's country. No competitive scoring against other applicants — this is a commercial risk assessment.

Application Steps

Required Documents 7

Eligible Expenses 7

• Bid bonds — required when submitting proposals on international contracts
• Performance bonds — guaranteeing contract completion to international buyers
• Advance payment guarantees — securing buyer advance payments made before delivery
• Warranty bonds — guaranteeing post-delivery warranty obligations
• Lease bonds — securing international equipment lease arrangements
• Supplier guarantees — guaranteeing payment to international subcontractors
• Regulatory guarantees — meeting foreign regulatory bonding requirements

Ineligible Expenses 5

• Purely domestic contracts with no export component
• Transactions involving sanctioned countries or entities
• Contracts that fail EDC's ESG screening
• Speculative performance bonds not tied to a real export contract
• Refinancing of existing domestic obligations

Intake Periods

Continuous — no intake windows or application deadlines. APSG facilities can be established at any time and pre-approved before contracts are won.

Deadline Notes

APSG is a continuous, on-demand facility with no application windows. Coverage can be pre-approved so exporters can respond immediately to contract opportunities. No annual intake cycle.

Open Application Portal →

Ineligible Organizations

• Businesses with no export activity and no credible export plans
• Companies operating in sanctioned jurisdictions
• Companies that fail EDC's ESG screening
• Companies with unacceptable credit risk
• Companies without a banking relationship at a participating Canadian financial institution

Compatible Programs

Clawback Risk

Low Risk

No clawback risk — APSG is a guarantee instrument, not a cash disbursement. If a letter of guarantee is called, EDC covers the claim (and may seek recovery from the exporter as part of the commercial arrangement). No repayment of a grant is involved.