Commercial Export Financing
Export Credit Guarantee Programs
The Commodity Credit
Corporation (CCC), of USDA, administers export
credit guarantee programs for
commercial financing of U.S.
agricultural exports. The programs
encourage exports to buyers in
countries where credit is necessary
to maintain or increase U.S. sales,
but where financing may not be
available without CCC guarantees.
Export Credit Guarantee Program
(GSM-102) covers credit terms up to
three years. GSM-102 underwrites
credit extended by the private
banking sector in the United States
(or, less commonly, by the U.S.
exporter) to approved foreign banks
irrevocable letters of credit to pay
for food and agricultural products
sold to foreign buyers.
The Commodity Credit Corporation's (CCC) Facility Guarantee
Program (FGP) provides payment guarantees to facilitate the
financing of manufactured goods and services exported from
the United States to improve or establish agriculture-related
facilities in emerging markets. By supporting such facilities,
the FGP is designed to enhance sales of U.S. agricultural
commodities and products to emerging markets where the
demand for such commodities and products may be
constricted due to inadequate storage, processing, or handling capabilities for such products.