Facility Guarantee Program
The Facility Guarantee Program is designed to boost sales of U.S. agricultural products in countries where demand may be limited due to inadequate storage, processing, handling, or distribution capabilities. The program provides credit guarantees to facilitate the financing of manufactured goods and U.S. services to improve or establish agriculture-related facilities in emerging markets.
Under the FGP, the Commodity Credit Corporation (CCC) reduces the financial risk to lenders by guaranteeing payments due from approved foreign financial institutions to U.S. sellers or financial institutions.
Facility Guarantee Program Regulations
New to the Program? Start by submitting the Exporter Qualification Application
Participants are advised to note the following program parameters and limitations that are referenced in 7 CFR 1493 subpart C.
- Maximum tenor: 10 years
- Maximum guarantee coverage (principal): 100% (after deduction of the initial payment)
- Initial payment percentage: 15%
- Eligible local costs percentage: Up to 30%
- Eligible interest: the lesser of (1) the interest rate specified between the U.S. financial institution (or seller) and the foreign financial institution; or (2) 80 percent of the average investment rate of the most recent 52-week Treasury bill auction as announced by the Department of Treasury prior to the date the eligible interest rate is established or adjusted. For a given contractual event, the interest rate used to calculate eligible interest will be established as of the date of performance and remain in effect through the first interest and/or principal due date. CCC will adjust that rate as of each interest and/or principal due date. The adjusted rate shall take effect on the day after an interest and/or principal due date and remain in effect though the next interest and/or principal due date. [Note: In the event of any discrepancy between this website and the payment guarantee, the language on the payment guarantee shall prevail.]