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The following financing programs available specifically
to U.S. agricultural and commodity exporters through
the Commodity Credit Corporation (CCC) of the U.S.
Department of Agriculture. Additionally, agricultural
exporters may be elligible for additional, non
ag-specific programs for financing.
Export credit guarantee programs (below)
provide U.S. exporters and bankers protection against
default on repayment of a credit extended for an export
sales transaction. The programs cover both political
and commercial defaults.
U.S. exporters benefit by being able to make a sale
that might not be made without a payment guarantee.
With a CCC guarantee, U.S. bankers can extend more
attractive rates of interest for longer periods than
commercial terms. Importers benefit by being able
to negotiate better-than-commercial rates of interest
and longer periods for repayment with their bank.
The Export Credit Guarantee Program (GSM-102) and
the Intermediate Export Credit Guarantee Program
(GSM-103) underwrite credit extended by the private
banking sector in the United States (or, less commonly,
by the U.S. exporter) to approved foreign banks
using dollar-denominated, irrevocable letters of
credit to pay for food and agricultural products
sold to foreign buyers. GSM-102 covers credit terms
up to three years. GSM-103 covers longer credit
terms up to 10 years. Under GSM-102/103, the CCC
does not provide financing, but guarantees payments
due from foreign banks. Contact: Martha Keplinger,
(202) 720-3324; fax (202) 720-2949; e-mail: martha.keplinger@fas.usda.gov
The Supplier Credit Guarantee Program (SCGP) provides
a guarantee, in the event of an importer's default,
on a portion of a U.S. exporter's open account receivable.
U.S. exporters can purchase coverage for agricultural
commodities or product sales where short-term credit
has been extended directly to the importer. The
payment obligation of the importer must be evidenced
by a signed promissory note as prescribed by CCC.
While the SCGP emphasizes high-value or value-added
agricultural commodities, any agricultural product
may be considered. Contact: Martha Keplinger, (202)
720-3324; fax (202) 720-2949; e-mail: martha.keplinger@fas.usda.gov
The Facility Guarantee Program provides credit
guarantees for the sale of manufactured goods and
services to enhance and establish agribusiness-related
facilities overseas that primarily handle, store,
distribute, or process U.S. agricultural products
and commodities. The FGP assists importers in acquiring
needed manufactured goods and services while protecting
exporters from most of the risk of nonpayment by
the foreign bank. Contact: William Hawkins, 202-720-3241;
fax (202) 720-0938; e-mail: HawkinsW@fas.usda.gov
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