Facility Credit Guarantee Program

The Facility Credit Guarantee Program is a Commodity Credit Corporation credit guarantee program to encourage the construction or improvement of agriculture-related storage, processing, or handling facilities in emerging markets.

Coverage

The CCC provides repayment guarantees 95% of the covered value of the project, and a portion of interest on a variable rate basis on loans of one to ten years. The longer-term goal of the FGP is to expand sales of U.S. agricultural commodities and products to emerging markets. The CCC agrees to pay exporters or their assignee in the event a foreign bank fails to make payment pursuant to the terms of an irrevocable letter of credit.