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Franchise Loan

OPIC is committed to helping U.S. business franchisers grow by providing long-term financing in emerging markets around the world and is able to provide financing to a variety of business entities involved in international franchise relationships.

OPIC requires significant U.S. involvement in franchising transactions. This can be accomplished through 25 percent ownership by a U.S. small business in the franchisee, or significant involvement of the U.S. franchiser in the project, including:

  • the business concepts and systems employed by the franchisee were originally developed by the U.S. small-business franchiser;
  • a long-term franchise agreement among the U.S. franchiser, the local in country master franchiser, and the franchisee;
  • local use of the U.S. franchiser’s trademark or brand-name; and
  • the U.S. franchiser has a long-term financial interest through receipt of franchise fees.

OPIC also expects the project to meet the General Requirements outlined in the section on “Financing Details.”

Loan terms for franchise loans generally range between 3-8 years, with an interest-only grace period not to exceed six months. Available loan amounts range from $100,000 up to $4 million. Loans over $1.5 million should generally involve multiple units.