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Fact File:
Export Assistance for Small and Disadvantaged Businesses
The U.S. government offers a variety of services to help small and disadvantaged businesses export food and agricultural products. Here is a listing of those services and agency contact information.
U.S. Department of Agriculture
Foreign Agricultural Service (FAS): Offers a variety of programs and trade services to assist small and disadvantaged businesses to develop, maintain, and expand markets for U.S. agricultural commodities. Two programs in particular--the Foreign Market Development Program and the Market Access Program (MAP)--are well suited for small firms wishing to export. Each program conducts marketing activities by working with companies through nonprofit commodity groups, trade associations, and State departments of agriculture and their regional associations. Under MAP, 56 percent of the funds for promotion of branded products went to small entities in 1996, up from 41 percent in 1994. Virtually every U.S. agricultural product entering world trade is promoted by one of FAS’ market development activities, which cover more than 80 countries. Contact the Marketing Operations Staff, Tel.: (202) 720-5521.
U.S. Trade Assistance and Promotion Office (TAPO): The Trade Assistance and Promotion Office (TAPO) of the FAS is the first point of contact for information on foreign markets for agricultural products. The TAPO staff can provide basic export counseling and direct you to the appropriate USDA offices to answer your specific technical questions on exporting. In addition, the staff can provide country and commodity-specific foreign market reports that focus on best market prospects and contain contact information on distributors and importers. Contact the Trade Assistance and Promotion Office, Tel.: (202) 720-7420 or Fax.: (202) 690-4374.
Trade Shows: International trade shows and exhibitions for food and agricultural products provide an economical way for small businesses to meet foreign buyers and consumers, test a new product or market, and assess the competition. FAS organizes U.S. pavilions at major international trade shows. Low-cost exhibitor services include a fully appointed booth, publicity, market research, educational programs, product shipment, and assistance with customs clearance. For more information, contact the Trade Show Office, Tel.: (202) 690-1182 or Fax.: (202) 690-4374.
Information on the Foreign Agricultural Service’s programs and trade services is available through the FAS Home Page on the Internet at: http://www.fas.usda.gov. The FAS Home Page provides access to facts, figures, analysis, and activities on agricultural trade -- around the clock and around the world.
Office of Small and Disadvantaged Business Utilization: The Office of Small and Disadvantaged Business Utilization (OSDBU) fosters the use of small, disadvantaged, minority, and women-owned businesses as federal contractors within the U.S. Department of Agriculture (USDA). OSDBU is the Department’s central point of contact for all inquiries from industry on how to do business with USDA. OSDBU's primary goals are to provide maximum opportunities for small, disadvantaged, minority, and women-owned businesses to participate in USDA's contracting process and to assist small businesses in becoming more competitive.
To receive detailed information on how to do business with USDA or on programs that are available to the small business community, contact the Small Business Office, Tel.: (202) 720-7117.
Small Business Administration (SBA)
Export Working Capital Program (EWCP): To help small businesses export, SBA has developed the new Export Working Capital Program. SBA’s EWCP, which replaces the former Export Revolving Line of Credit, provides short-term, transaction-specific financing. Exporters may use this program for pre-export financing of labor and materials; financing receivables generated from these sales; and/or standby letters of credit used as performance bonds or payment guarantees to foreign buyers. The EWCP provides repayment guarantees up to $750,000 to commercial lenders and offers exporters preliminary commitments that encourage lenders to provide credit. To be eligible, the small business must have been in operation, though not necessarily exporting, for at least 12 months. Interest rates and fees are negotiable between the lender and the small business exporter. Contact the Office of International Trade, Tel.: (202) 205-6720 or Fax.: (202) 205-7272.
Office of International Trade: This office works to encourage small business exports and to assist small businesses seeking to export. The office sponsors "how to" and market-specific publications for exporters. It also coordinates the Small Business Administration's export initiatives, and offers two loan guarantee programs designed specifically for international trade. Contact the Office of International Trade, Tel.: (202) 205-6720 or Fax.: (202) 205-7272.
International Trade Loan Guarantee Program: This program helps small businesses that are engaged in or preparing to engage in international trade, as well as small businesses adversely affected by competition from imports. SBA can guarantee up to $1.25 million, less the amount of SBA’s guaranteed portion of other loans outstanding, to the borrower under SBA’s regular lending program. Loans are made by lending institutions, with the SBA guaranteeing a portion of the loan. The applicant must establish either that the loan proceeds will significantly expand existing export markets or develop new export markets, or that the small business is adversely affected by import competition. Proceeds may be used for working capital and/or facilities or equipment. Contact the Office of International Trade, Tel.: (202) 205-6720, or Fax.: (202) 205-7272.
SCORE Program: Members of the Service Corps of Retired Executives, many with years of practical experience in international trade, provide one-on-one assistance. Specialists assist small firms in evaluating export potential and strengthening domestic operations by identifying financial, managerial, or technical problems. Contact SCORE, Tel.: (800) 634-0245 or Fax.: (202) 205-7636.
Small Business Development Centers: The centers provide managerial and technical assistance, counseling and training assistance, research studies, and other types of specialized assistance to small business exporters. Contact the Office of Small Business Development Centers, Tel.: (202) 205-6766 or Fax.: (202) 205-7727.
Agency for International Development (AID)
Office of Small and Disadvantaged Business Utilization, Minority Resource Center: The center serves as an information clearinghouse and counsels U.S. firms and other organizations on how to do business with AID. The center has a database of more than 2,000 companies and institutions that have the capability to match the agency's project requirements. Contact the Office of Small and Disadvantaged Business, Tel.: (703) 875-1551 or Fax.: (703) 875-1862.
Export-Import Bank
Export Credit Insurance: Through its agent, the Foreign Credit Insurance Association, the Export-Import Bank offers insurance that covers political and commercial risks on export receivables. The New-to-Export Policy is available to firms just beginning to export or with average annual export sales of less than $750,000 for the past two years. The Umbrella Policy is available to commercial lenders, state agencies, export trading companies, and similar organizations to insure export receivables of the bank's small and mid-sized clients. Contact the Insurance Division, Tel.: (202) 565-3630 or Fax.: (202) 565-3678.
Working Capital Guarantee Program: The program helps small businesses obtain pre-export financing from commercial lenders. The bank will guarantee 90 percent of principal and a limited amount of interest on loans or revolving lines of credit extended to eligible exporters. The funds may be used for such pre-export activities as buying raw materials or foreign marketing. Contact the U.S. Division, Tel.: (202) 565-3781 or Fax.: (202) 565-3793.
Services for Small Business: To encourage small businesses to sell overseas, the bank offers a toll-free hotline with information on the availability and use of export credit insurance, guarantees, and direct and intermediate loans to finance the sale of U.S. goods and services abroad. Contact the bank's hotline, Tel.: (800) 565-3946.
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