Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.
Uses and Use Restrictions
CCC guarantees payments due from approved foreign banks to exporters or financial institutions in the U. S. However, the financing must be obtained through normal commercial sources.
Typically, 98 percent of principals and a portion of interest are covered by a guarantee.
because payment is guaranteed, financial institutions in the U. S. can offer competitive credit terms to the foreign banks, usually with interest rates based on the London Inter Bank Offered Rate (LIBOR).
Any follow-up on credit arrangements between the foreign bank and the importer are negotiated separately and are not covered by the CCC guarantee.
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 countires-mailnly developing countries- that have sufficient financial strenght to have foreign exchange available for scheduled payments.
This Program provides guarantees to lenders.
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.
No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
Preapplication coordination is not applicable.
Environmental impact information is not required for this program.
This program is excluded from coverage under E.O.
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. CCC must qualify exporters for participation before accepting guarantee applications. An exporter must have a business office in the U.S. and must not be debarredor suspended from any U.S. government program. Financial institutions must meet established criteria and be approved by CCC. CCC sets limits and advises each approved foreign bank on the maximum amount CCC will guarantee for that bank. The
The CCC-approved foreign bank issues a dollar-denominated, irrevocable letter of credit in favor of the U.S. exporter, ordinarily advised or confirmed by the financial institution in the U.S. agreeing to extend credit to the foreign bank. The U.S. exporter may negotiate an arrangement to be paid as exports occur by assigning to the U.S. financial institution to the right to process that may become payable under the CCC"s guarantee. Under this arrangement, the exporter would also provide transaction-related documents required by the financial institution, including a copy of the export report, which must also be submitted to CCC.
Contact the headquarters or regional office, as appropriate, for application deadlines.
Agricultural Trade Act of 1978; 0MB 7 CFR 1493, Part A.
Range of Approval/Disapproval Time
Please contact the headquarters or regionaloffice for addition approval information.
Formula and Matching Requirements
Statutory Formula: Title 7, Chapter 14, Part 1493. CCC will review documents submitted under a claim. If all information and documents are in good order and meet the requirements of the regulations, CCC will pay to the exporter (or the exporter"s assignee) the lesser of 1) the guarantee value stated in the payment guarantee, plus eligible interest; 2) the guaranteed percentage, indicated in the payment guarantee, of the exported value as indicated in the Evidence of Export, plus eligible interest.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
The payment guarantee applies to a credit period established in the application, and coverage begins either on the date(s) of export or the date when interest begins to accrue, whichever is earlier. Coverage will continue during the credit term specified in the payment guarantee. However, the payment guarantee does not become effective until the date of export. Method of awarding/releasing assistance: by letter of credit.
Post Assistance Requirements
No reports are required.
This program is excluded from coverage under OMB Circular No. A-133. Recipients under this program are subject to audit by the Office of the Regional Inspector General, U.S. Department of Agriculture.
For CCC audit purposes, the U.S. exporter must obtain documentation to show that the commodity arrived in the eligible country, and the exporter or the exporter"s assignee must maintain all transaction documents for five years from the date of completion of all payments.
(Guaranteed/Insured Loans) FY 10 Not Available; FY 11 $1,050,000,000; FY 12 Estimate Not Available
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines, and Literature
Program Announcements issued by the Foreign Agricultural Service provide information on specific country and commodity allocations, length of credit period, and other program information and requirements.
Regional or Local Office
See Regional Agency Offices. For more information, contact:
Director, Credit Programs Division, Office of Trade programs
FAS/USDA, Stop 1025, 1400 Independence Ave SW Washington DC 20250-1025.
Operations Division 1400 Independence Ave SW Washington DC 20250-1025
Stop 1025, Washington, District of Columbia 20250 Phone: (202) 720-2949 Fax: (202) 720-6211
Criteria for Selecting Proposals
A part of a series produced by The Huffington Post in celebration of #GivingTuesday, which will take place this year on December 3, Kathy Calvin and Henry Timms vouch that we are living in a new era of philanthropy.