United States export subsidies

The USTDA has spearheaded a program gathering overseas project sponsors from various countries all over the world to work in collaboration with in seeing to it that companies and parties are given an opportunity to engage in business for the benefit of the economy.

The USTDA awards grant funds to overseas project sponsors and in order to utilize these grant funds, the sponsors need to select US firms to work with. It can go in either two ways:

1. Through a notice published on the Federal Business Opportunities web page and this involves competitive proposals in the process.

2. Through sole-source grants. The overseas project sponsor should have already identified a US firm or preferred supplier for a project.

In the part of the US firms selected by the overseas project sponsors, they are to submit a separate project proposal to USTDA and they will be sharing costs with the Agency.

Eligibility for sole-source grants

Should be a US firm.

The firm selected should be from the US. To verify that a firm is from the US, requirements under USTDA’s nationality requirements should be followed.

Requesting support projects involving infrastructures in developing nations.

The USTDA is all for supporting project planning and development in unfolding markets. These sole-source grants can be used for feasibility studies, technical assistance, and pilot projects in infrastructure sectors.

On a separate note, the USTDA does not offer financial assistance for project implementation, marketing, or sales.

Projects will be located in countries where USTDA programs are available.

USTDA programs are available in several developing countries and emerging markets but not available in countries with high-income.

US firms should collaborate with a country-specific project sponsor.

The overseas project sponsor can either be a government institution or a local private company. US firms should be selected and partnered with an overseas project sponsor first before it can submit a project proposal to the USTDA.

The presence of obstacles and gaps that prevent project implementation.

Obstacles for implementation may include weak regulatory structures, insufficient institutional or managerial capacity, lack of proper financial and legal expertise, or the absence of adequate tariff structures. The USTDA can provide funding to help address obstacles and gaps that prevent implementation.

Potential for US exports upon implementation.

The projects should have the potential to generate opportunities for the US export industry.

Projects should involve commercially available technology.

The USTDA intends to promote US exports of commercially available technology and equipment for projects.

Project sponsors should have an impressive and successful work record in project development.

Both parties should demonstrate their experience with a record of success in similar/closely related projects. This can be done by showing three years of audited financial statements of successful business operations.

Identification of potential financial sources for the project’s implementation.

USTDA supports projects with a reasonable likelihood of obtaining financing for implementation.

USTDA grant

Grants typically range from $500,000 and rarely exceed $1 million.

US firm cost share

US firms will be sharing the labor expenses with USTDA. USTDA is required to seek these contributions from US firms to the maximum extent.

The USTDA will do its very best to provide assistance on projects located overseas. With good marketing plan plus the financial aid they have given, customs will be sure to improve and strengthen the economy and pave a way to the export industry’s success.

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