Export Guarantee Program

Objective

The U.S. Department of Agriculture's (USDA) Export Credit guarantee Program (GSM-102) provides credit guarantees to encourage financing of commercial exports of U.S. agricultural products, while providing competitive credit terms to buyers. By reducing financial risk to lenders, credit guarantees encourage exports to buyers in countries, mainly developing countries that have sufficient financial strength to have foreign exchange available for scheduled payments. The program guarantees credit extended by the private banking sector in the U.S. (or, less commonly, by the U.S. exporter) to approved foreign banks using dollar-denominated, irrevocable letters of credit for purchases of U.S. food and agricultural products by foreign buyers. USDA's Foreign Agricultural Service (FAS) administers the program on behalf of the Commodity Credit Corporation (CCC), which issues the credit guarantees. GSM 102 covers credit terms of up to three years; maximum terms may vary by country.

Who Can Apply

• Unrestricted by Entity Type

Export Credit guarantee Program (GSM-102) provides credit guarantees to encourage financing of commercial exports of U.S. agricultural products, while providing competitive credit terms to buyers. By reducing financial risk to lenders, credit guarantees encourage exports to buyers in countries, mainly developing countries, that have sufficient financial strength to have foreign exchange available for scheduled payments. This Program provides guarantees to lenders.

Who Benefits

• U.S. Territories
• Small business
• Profit organization
• Farmer/Rancher/Agriculture Producer
• Small Business Person
• Federally Recognized Indian Tribal Governments

Exporters or the exporters assignee are the direct beneficiaries and must meet the applicant eligibility requirements. Interested parties, including U.S. exporters, foreign buyers, banks, may request that the CCC establish a GSM-102 program for a country or region. Prior to announcing the availability of guarantees, the CCC evaluates the ability of each country and foreign bank to service CCC guaranteed debt.

Assistance Types

• Loan Guarantee

Program Contact

juan.mccoy@usda.gov
2027200370