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| 70.002 FOREIGN INVESTMENT FINANCING |
| FEDERAL AGENCY |
| OVERSEAS PRIVATE INVESTMENT CORPORATION |
| AUTHORIZATION |
| Foreign Assistance Act of 1969, Title IV, Section 234(b) and 234(c), Public Law 91-175, 22 U.S.C. 2191, et seq. |
| OBJECTIVES |
| 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. |
| TYPES OF ASSISTANCE |
| Guaranteed/Insured Loans. |
| USES AND USE RESTRICTIONS |
| 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. |
| Applicant Eligibility |
| 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. |
| Beneficiary Eligibility |
| 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. |
| Credentials/Documentation |
| 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. |
| Preapplication Coordination |
| None. This program is excluded from coverage under E.O. 12372. |
| Application Procedure |
| Application for Financing is required. |
| Award Procedure |
| 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. |
| Deadlines |
| None. |
| Range of Approval/Disapproval Time |
| Variable, depending on status and complexity of the project. |
| Appeals |
| Not applicable. |
| Renewals |
| Not applicable. |
| Formula and Matching Requirements |
| Significant equity investment in the project company by qualified U.S. sponsor. |
| Length and Time Phasing of Assistance |
| Variable, depending on characteristics of the project. OPIC financing is usually in the range of 5-15 years. |
| Reports |
| Projects submit quarterly and annual reports on operations and capital spending, and such other reports as OPIC may call for. |
| Audits |
| OPIC representatives monitor projects closely and may visit project and interview management. Financial statements generally in accordance with the United States generally accepted accounting practices must be submitted for OPIC monitoring. |
| Records |
| Certain accounting records, drawdowns of all funds, and other information must be available during term of financing and beyond. |
| Account Identification |
| 71-4030-0-3-151; 71-0100-0-1-151; 71-4075-0-3-151; 71-4074-0-3-151; 71-4184-0-3-151. |
| Obligations |
| (Total Loan Commitments) FY 07 $1,950,000,000; FY 08 est not available; and FY 09 est not reported. |
| Range and Average of Financial Assistance |
| $100,000 to $320,000,000; small business loans, $100,000 to $46,300,000; $7,143,245; non-small business loans, $1,350,000 to $250,000,000; $45,641,379. |
| PROGRAM ACCOMPLISHMENTS |
| Since 1971, OPIC, a self-sustaining agency, has supported more than $164 billion in U.S. investment overseas that will generate over $69 billion in U.S. exports and support more than 264,000 American jobs. Additionally, OPIC has benefited the more than 150 countries in which it has operated or is currently operating, supporting sustainable development and international trade while solidifying free markets. |
| REGULATIONS, GUIDELINES, AND LITERATURE |
| "OPIC Program Handbook," free. Web site address is http://www.opic.gov. |
| Regional or Local Office |
| None. |
| Headquarters Office |
| Information Officer Overseas Private Investment Corporation 1100 New York Ave., NW, Washington, DC 20527 Telephone: (202) 336-8799. For program information by electronic mail: info@opic.gov . |
| Web Site Address |
| http://www.opic.gov |
| RELATED PROGRAMS |
| 70.003, Foreign Investment Insurance. |
| EXAMPLES OF FUNDED PROJECTS |
| Examples of financed projects include cellular telephone networks, retail petroleum projects, electric power generation projects, small business transactions, and manufacturing and agricultural ventures. |
| CRITERIA FOR SELECTING PROPOSALS |
| See USES AND USE RESTRICTIONS and ELIGIBILITY REQUIREMENTS. |
|
General Services Administration Office of Chief Acquisition Officer Regulatory and Federal Assistance Division (VIR) |
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