WASHINGTON, Aug. 25, 2005 – The U.S. Department of Agriculture's Foreign Agricultural Service today launched a new Web site that will expedite and simplify documentation for three USDA export financing programs. The General Sales Manager Online System enables U.S exporters and U.S. banks to submit required documentation online, or electronically, for the GSM-102, Supplier Credit Guarantee and Facility Guarantee Programs. These programs facilitate commercial financing of U.S. agricultural exports.
Users must establish an online account before they can submit applications for payment guarantees as well as submit the following via the Internet: assignments of payment guarantees, amendments to guarantees, evidence of export reports, and notices of default.
The new online system increases data reliability and reduces document-processing time for the three programs, which 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 U.S. government guarantees. The system also helps fulfill USDA's eGovernment goals by providing online trade assistance and electronic access to USDA loan programs.
The Export Credit Guarantee Program (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 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.
The Supplier Credit Guarantee Program (SCGP) guarantees payments on promissory notes from importers for a percentage of the face value up to 180 days. The Facility Guarantee Program (FGP) provides payment guarantees to facilitate the financing of U.S. goods and services exported to improve or establish agriculture-related facilities in emerging markets.
Additional information about the GSM Online System is available at http://www.fas.usda.gov/excredits/gsmonline/intro.asp.
Exporters who need further information should contact the Contract and Registration Branch of FAS at (202) 720-3224, or by email at AskGSM@fas.usda.gov. U.S. banks needing further information should contact the Financial Management Division of the Farm Service Agency at 703-305-0957.
FAS news releases are available on the Internet at http://www.fas.usda.gov. For more information about Web access, contact FAS' Public Affairs Division at (202) 720-7115.
Lallie Leighton (202) 720-2061