Funds for marketing U.S. products overseas

FAS offers the Market Access Program (MAP) which provides direct cost-share assistance to non-profit agricultural trade associations who assist U.S. companies in entering and expanding sales in foreign markets. Some of these trade associations then offer assistance to cooperatives and small companies for promotion of their brand name products overseas, and may be reimbursed for up to 50 percent of their eligible export promotions.

The four largest of these organizations are the State Regional Trade Groups (link needed) are non-profit international trade associations which assist U.S. food and agricultural exporters in entering and expanding sales in foreign markets. The four SRTGs serve companies across the United States as follows:

• Food Export USA-Northeast: Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont.

• Mid-America International Agri-Trade Council: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin.

• Southern U.S. Trade Association: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia, West Virginia.

• Western U.S. Agricultural Trade Association:  Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming

Financial guarantees/insurance
New and experienced exporters can benefit from export guarantee and insurance programs. These programs promote exports by providing exporters greater access to credit and credit risk protection.

• USDA administers the Export Credit Guarantee Program (GSM-102) and the Intermediate Export Credit Guarantee Program (GSM-103), which underwrite credit extended by the private banking sector for up to three and ten years, respectively, on exports of food and agricultural products.

• USDA also administers the Supplier Credit Guarantee Program (SCGP), which provides short term guarantees (up to 180 days) on a portion of credit exporters have directly extended to the importers for the purchase of U.S. agricultural commodities and products.

• The Facility Guarantee Program (FGP), administered by USDA, provides payment guarantees to improve or establish agriculture-related facilities in emerging markets.

• The SBA International Trade Loan Program provides financing for small businesses to expand their market or upgrade their facilities to improve their competitive position.

• The Export-Import Bank has several loan, guarantee and insurance programs to help the exporter.

• The Overseas Private Investment Corporation also has a program for export loan guarantees.

Export incentive programs

The Export Enhancement Program (EEP), helps U.S. produced agricultural goods compete with products from subsidizing countries, especially the European Union.

The Dairy Export Incentive Program (DEIP) aims to develop export markets for U.S. dairy products where they are not competitive because of the presence of subsidized products from other countries.

Other important sites:

The Department of Commerce International Trade Administration carries a list of multinational banks which the exporter can apply to for various programs.

The Department of Commerce International Trade Administration publishes a basic Guide to Exporting which will help you identify the options for financing export transactions.

Once you have arranged your financing package, you will need to determine how you will be paid for your goods. The USDA website on methods of payment provides a comprehensive guide to the choices you have, including the risks and costs involved.

The SBA also provides information on financing through venture capital.