USDA GSM-102 Export Credit Guarantee Program
The world's most powerful agricultural trade finance instrument. GA-Ameri Plus provides authorized access to GSM-102 guarantees across 140+ eligible countries.
What Is the GSM-102 Program?
The Export Credit Guarantee Program (GSM-102) is administered by the USDA Foreign Agricultural Service through the Commodity Credit Corporation (CCC). It guarantees repayment of private, short-to-medium term financing that US banks extend to approved foreign banks, enabling US exporters to offer competitive credit terms in markets where financing may be limited.
Established
Agricultural Trade Act of 1978, Section 102
Administrator
USDA Foreign Agricultural Service / CCC
Coverage
98% of principal + portion of interest
Terms
6 to 36 months
How GSM-102 Works
US Exporter
Ships eligible agricultural commodities to approved foreign buyer under an export contract
Foreign Bank
Issues an irrevocable Letter of Credit to the US exporter's bank guaranteeing payment
US Bank
Extends financing to the US exporter against the LC, providing working capital
USDA CCC
Issues a guarantee certificate covering 98% of the financed amount against default
Repayment
Flows from foreign bank to US bank; USDA covers any default under the guarantee
Why GSM-102 is the Gold Standard
Sovereign-Grade Security
USDA CCC guarantee qualifies as sovereign under Basel III, reducing bank risk-weighted assets to 0%
Competitive Credit Terms
Offer 6–36 month payment terms that match or beat competitor financing from China, EU, and Brazil
140+ Eligible Countries
Broadest coverage of any agricultural trade finance program globally
98% Principal Protection
Near-total guarantee coverage enables banks to lend at competitive rates
Fast Execution
GA-Ameri Plus delivers 72-hour term sheets and 10-day LC processing
Basel III Compliant
Guaranteed portions receive 0% risk weight under standardized approach
Eligible Commodities
CBOT/KCBT exchange-referenced. All commodities subject to USDA FAS eligibility confirmation. Contact GA-Ameri Plus for current approved commodity list.
Global Eligible Markets
Latin America
12 eligible countries
- • Mexico
- • Guatemala
- • Dominican Republic
Basel III / Basel IV Compliance Advantage
USDA CCC guarantees are recognized as sovereign guarantees under the Basel III standardized approach. The guaranteed portion of GSM-102-backed transactions receives a 0% risk weight, materially reducing bank capital requirements and enabling more competitive lending rates. GA-Ameri Plus structures all transactions to maximize Basel III capital relief for participating financial institutions.
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Related USDA Programs
Facility Guarantee Program (FGP)
For agricultural infrastructure financing including grain storage, processing mills, cold chain, and port infrastructure. Terms up to 10 years. Eligible for sovereign and government buyers.
EOR Program
Export Operations & Risk coverage for US exporters. Covers political risk, currency inconvertibility, and commercial default beyond the GSM-102 guarantee.