Federal Financial Assistance Requirements for Exporters, Sellers, and U.S. Financial Institutions Participating in the GSM-102 and Facility Guarantee Programs (FGP): Administrative Requirements for Federal Awards

The Office of Management and Budget (OMB) issues guidance on Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR part 200. In 2 CFR 400.1, the U.S. Department of Agriculture (USDA) adopts OMB's guidance in subparts A through F of 2 CFR part 200, as supplemented by 2 CFR Chapter IV, as USDA policies and procedures for Federal awards. Certain guidance within 2 CFR 200 and 2 CFR Chapter IV applies to recipients of federal loan guarantees, including guarantees issued under USDA’s GSM-102 Export Credit Guarantee Program and Facility Guarantee Program (FGP). 

FAS is issuing this notice to advise and remind Exporters, Sellers, and U.S. Financial Institutions participating in the GSM-102 and FGP programs (hereafter referred to as “participants”) of relevant requirements within 2 CFR 200 and 2 CFR 400.

2 CFR 200:  Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

Certain provisions of 2 CFR part 200, as implemented by 2 CFR 400.1, are applicable to recipients of loan guarantees, including those issued under the GSM-102 and FGP Programs. Participants should review 2 CFR part 200 in full, but note that specific applicable provisions include the following: 

2 CFR 200.216 (“Prohibition on certain telecommunications and video surveillance equipment or services”) prohibits participants from obligating or expending loan or grant funds to procure certain covered telecommunications equipment or services.

2 CFR 200.303 (“Internal Controls”) applies to “non-Federal entities,” defined at 2 CFR 200.1 as “a State, local government, Indian Tribe, Institution of Higher Education (IHE), or nonprofit organization that carries out a Federal award as a recipient or subrecipient.” This provision requires non-Federal entities to establish, document, and maintain effective internal control over Federal awards.

2 CFR 200, Subpart F (“Audit Requirements”) applies to “non-Federal entities” receiving GSM-102 or FGP loan guarantees and dictates requirements for single or program-specific audits.
 

2 CFR 418:  New Restrictions on Lobbying

2 CFR 418.100 applies certain requirements related to lobbying to loans guaranteed or insured under a USDA program, including the GSM-102 and FGP Programs. In accordance with 2 CFR 418.110(a)(2), “Each person must file a certification, and a disclosure form, if required, with each submission that initiates agency consideration of such person for: (2) An award of a Federal loan or a commitment providing for the United States to insure or guarantee a loan exceeding $150,000.”

Exporters and Sellers must make the required certification statement below (found at 2 CFR 418, Appendix A) when submitting an application for a GSM-102 or FGP payment guarantee. U.S. Financial Institutions are required to make this certification when accepting a notice of assignment.

“The undersigned states, to the best of his or her knowledge and belief, that:

If any funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this commitment providing for the United States to insure or guarantee a loan, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.”

If required by 2 CFR 418.110(c), participants should submit the disclosure form found in Appendix B of 2 CFR 418 to the Foreign Agricultural Service Credit Programs Division.

For questions or further information, see the regulations referenced in this notice or contact the Operations and Analysis Branch of the Foreign Agricultural Service by email at gsm.registrations@usda.gov.