Foreign Investment Financing
To provide financing for projects sponsored by private U.S. businesses in developing countries and emerging economies throughout the world, thereby assisting development goals and improving U.S. competitiveness, creating American jobs and increasing Unites States exports.
General information about this opportunity
Last Known Status
Overseas Private Investment Corporation
Type(s) of Assistance Offered
E - Direct Loans; F - Guaranteed/Insured Loans
Foreign Assistance Act of 1969, Title IV, Section 234(b), 234(c), Public Law -91-175, 22 U.S.C. 2191, et seq
Who is eligible to apply/benefit from this assistance?
Guaranteed investor must be citizen of the United States, a corporation, partnership, or other association created under the laws of the United States or any State or territory, and more than 50 percent beneficially owned by U.S. Citizens; a foreign corporation at least 95 percent owned by such entities; or a 100 percent United States-owned foreign entity. Direct loans are reserved for projects sponsored by or significantly involving United States small businesses or cooperatives. Applicants also must meet OPIC's credit underwriting criteria.
Project must have significant participation by a United States sponsor, generally in the form of at least 25 percent equity ownership. OPIC does not support projects that will result in the loss of U.S. jobs, that would contribute to the violation of internationally recognized worker rights or involve illicit payments. OPIC only supports projects that contribute to the economic and social development of the host country.
OPIC Finance Application; Financial statements; OPIC sponsor disclosure report; other applicable information on operations of U.S. investor, and project business plan. A bilateral agreement between the United States and the host country government must be in place before OPIC can provide loan guaranties in a country. In some cases, special foreign government approval is required before financing can be provided.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Application for Financing is required.
OPIC conducts extensive due diligence and project analysis. Project must be approved internally and meets OPIC's credit, policy and legal criteria. Loan guaranty is issued directly to the lender by OPIC, in conjunction with OPIC entering into financing documentation with the borrower, U.S. sponsor and other parties. Direct loan is made directly to the project company.
Approval/Disapproval Decision Time
Variable, depending on status and complexity of the project.
How are proposals selected?
See USES AND USE RESTRICTIONS and ELIGIBILITY REQUIREMENTS.
How may assistance be used?
To provide financing for investments in developing countries in projects that contribute to the economic and social development of the host country and have a positive impact on the U.S. economy. OPIC screens out projects that might have a negative effect on U.S. employment or the host country's development or the environment, or would contribute to the violation of internationally recognized worker rights. Direct loans can only be made to private sector projects in which there is significant involvement by an U.S. small business.
What are the requirements after being awarded this opportunity?
Certain accounting records, drawdowns of all funds, and other information must be available during term of financing and beyond.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.
Matching is voluntary. Significant equity investment in the project company by a qualified U.S. sponsor.
MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Variable, depending on characteristics of the project. OPIC financing is usually in the range of 5-15 years. Once OPIC has signed a loan agreement, a borrower may submit a request for disbursement 20 business days before the requested disbursement. The conditions to disbursement must be satisfied in full before the funds will be disbursed. Most of these conditions are under the borrower’s control, i.e. providing certificates, documentation, etc., but in some cases additional security documentation must be drafted by OPIC or outside counsel. OPIC will work diligently to see that these documents get promptly executed but a high level of cooperation is needed from the borrower to see that this process goes smoothly.
Who do I contact about this opportunity?
Regional or Local Office
1100 New York Avenue, N.W.
Washington, DC 20527 US
(Guaranteed/Insured Loans) FY 09 est $2,000,000,000.00; FY 08$1,374,000,000.00; FY 10 est $2,350,000,000.00; - Total Loan Commitments
Range and Average of Financial Assistance
$200,000 to $400,000,000; small business loans $200,000 to $100,000,000, $23,353,000; non-small business loans $1,166,550 to $400,000,000, $27,067,770
Regulations, Guidelines and Literature
"OPIC Program Handbook," free. Web site address is http://www.opic.gov.