Which projects does USTDA support?

Because of its focused mission, USTDA only considers projects that have potential to mature into significant business opportunities for U.S. companies. To be considered for funding, projects must;

1. Be likely to receive implementation financing and have a procurement process that provides "equal access" to U.S. firms;
2. Represent an opportunity for sales of U.S. goods and services that is many times greater than the initial investment of USTDA assistance;
3. Be a development priority of the country where the project is located; and
4. Face strong competition from foreign companies that may receive subsidies and other support from their governments.

USTDA learns of viable public and private sector projects from the U.S. business community and from other government agencies, such as the Commerce Department's U.S. and Foreign Commercial Service (US&FCS) and the State Department's economic officers. We also receive project information from the public and private sectors of foreign countries.

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How do I obtain USTDA funding for a project?

We recommend that you familiarize yourself with USTDA's mission and funding criteria, and discuss your project with a USTDA representative prior to preparing a written proposal. The USTDA Website has a significant amount of information to assist interested companies, including a feasibility study model format. Additional resource information on USTDA's past activities and current events can be obtained by contacting USTDA's Information Resource Center at (703) 875-4357.

After learning about USTDA, you should call the appropriate Regional Director or Country Manager for the country you are interested in discussing to informally review your project. Assuming there is mutual interest, you should then provide the USTDA contact with a brief (2-3 page) outline of the proposal. If, after review of the informal outline, the regional staff encourages you to proceed, you should prepare a proposal using the model format for feasibility study proposals.

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Why does USTDA turn down requests for project assistance?

USTDA receives many project request that do not meet the criteria listed above and cannot be supported. However, worthwhile projects sometimes cannot be funded because of USTDA's limited resources. We weigh each project against others competing for our funds. The likelihood of project success is a major consideration in USTDA's project funding decision.

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How long does it take to get a USTDA grant?

It depends on the complexity of the project and quality of the supporting documentation. If the project has merit, USTDA moves as quickly as possible to launch a Desk Study or Definitional Mission. These reports typically take several weeks to several months to complete. USTDA reviews a report immediately upon its completion and a decision is made on whether to move forward.

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How do small businesses win bids for USTDA-funded feasibility studies?

Small and medium-sized contractors often win competitions on their own. However foreign entities sometimes are hesitant to select a small contractor for multi-million dollar projects. In these cases, small businesses often align themselves with better-known, larger firms to form a bidding consortium before the competition.

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How can small businesses learn about opportunities from USTDA?

In addition to Federal Business Opportunities, the USTDA Pipeline, a biweekly publication, is your best source to learn about feasibility studies and orientation visits. USTDA also has a 24-hour hotline listing Definitional Mission opportunities (703-875-7447).

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How can I participate in a USTDA-sponsored orientation visit by foreign buyers?

All USTDA orientation visits are listed in the USTDA Pipeline. Notify the USTDA contractor coordinating the visit directly to participate as soon as the announcement is made.

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How much do USTDA services cost?

There are no application fees for USTDA services. In many feasibility study grants, USTDA requires cost-sharing and reimbursement for its share of the study if the project is implemented and the U.S. company performing the study benefits from the project.

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What other activities does USTDA fund?

Definitional Missions consist of technical specialists contracted by USTDA for a short-term visit to a host country to gather additional information to analyze whether to proceed with a feasibility study. Definitional Missions, which are carried out exclusively by small and minority-owned businesses, also provide American small business with opportunities to establish working relationships with foreign officials.

Desk Studies are used by USTDA when there is sufficient project information available, and an overseas visit is not necessary. In these situations, USTDA hires a technical specialist to perform a review of the proposed project and to answer specific questions -- without leaving the United States.

Both of these evaluations review the nature of the project, its priority to the host government, its expected total cost, the likelihood of project financing, the need for a feasibility study, the terms of reference and budget for the study, its environmental impact, the U.S. export potential, the expected impact on U.S. jobs, and the U.S. companies that could compete for procurement of goods and services for the project.

Based on the recommendations contained in the Definitional Mission or Desk Study report, the advice of the U.S. embassy, our internal analysis, and budget capabilities, USTDA makes decisions on funding requests for feasibility studies.

USTDA sponsors Technical Symposia, reverse trade missions called Orientation Visits, and Business Briefings. These activities familiarize foreign decision-makers with U.S. goods and services and provide them an opportunity to meet with U.S. suppliers. At our conferences, U.S. companies hear the results of feasibility studies, learn the nature and type of procurements associated with specific projects, and meet one-on-one with senior officials from the country or company sponsoring the project.

USTDA also funds Trade-Related Training that enables host country project personnel to receive necessary technical and managerial training when a U.S. firm is selected to implement the project. We also fund Technical Assistance to respond to the complex demands of a given project when required expertise is unavailable in the host country.

USTDA also provides limited funds to Multilateral Development Banks (MDBs), including the European Bank for Reconstruction and Development, the InterAmerican Development Bank, the Inter-American Investment Corporation and the International Finance Corporation. These USTDA funds allow the MDBs to hire U.S. consultants to assist in planning or evaluating projects that they are considering. As a result, USTDA gains valuable information about the projects' potential early in the process -- information that we pass on to American businesses.

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