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Catalog of Federal Domestic Assistance

Program Descriptions

70.002:  Foreign Investment Financing

Objectives:  To provide financing for projects sponsored by private U.S. businesses in friendly developing countries and emerging economies throughout the world, thereby assisting development goals and improving U.S. competitiveness, creating American jobs and increasing U.S. exports.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

70.002 ELIGIBILITY REQUIREMENTS:

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 U.S.-owned foreign entity. Direct loans are reserved for projects sponsored by or significantly involving U.S. small businesses or cooperatives. Applicants also must meet OPIC's credit underwriting criteria.

Beneficiary Eligibility:  Borrower 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 United States 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:  Application for regular and United States small business, as appropriate. Financial statements; OPIC sponsor disclosure report; other applicable information on operations of United States 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.

70.002 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  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, United State 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.

Criteria for Selecting Proposals:  See USES AND USE RESTRICTIONS and ELIGIBILITY REQUIREMENTS.

Examples of Funded Projects:  Examples of financed projects include cellular phone networks, retail petroleum projects, electric power generation projects, small business transactions, and manufacturing and agricultural ventures.

Range and Average of Financial Assistance:  From $10,000,000 to $75,000,000 for loan guaranties, but can go as high as $200,000,000; average: $60,000,000; $1,000,000 to $30,000,000 for direct loans; average: $8,000,000.

70.002 RELATED PROGRAMS:

• 70.003 Foreign Investment Insurance.

70.002 PROGRAM ACCOMPLISHMENTS:

70.002 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  OVERSEAS PRIVATE INVESTMENT CORPORATION

Type of Assistance:  Direct Loans.

Obligations:  (Loans) FY 99 $27,000,000 in subsidy obligations supported $635,000,000; FY 00 est $50,000,000 in subsidy obligations is expected to support $1,000,000,000 in loans and guaranteed loans; and FY 01 est $24,000,000 subsidy obligations is expected to support $1,200,000,000 in loans and guaranteed loans.

Budget Account Number:  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.

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.

Regulations, Guidelines, and Literature:  "OPIC Program Handbook," free. Web site address is www.opic.gov.

70.002 INFO CONTACTS:

Regional or Local Office:  None.

Headquarters Office:  Information Officer, Overseas Private Investment Corporation, 1100 New York Ave., NW., Washington, DC 20527. Phone: (202) 336-8799. For program information by telefax: (202) 336-8700; electronic mail: OPIC@opic.gov; internet: www.opic.gov.

(See Appendix IV for more contact info.)

70.002 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  Significant equity investment in the project company by qualified United State sponsor.

Length and Time Phasing of Assistance:  Variable, depending on characteristics of the project. OPIC financing is usually in the range of 5 to 15 years.

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 environment, 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 a U.S. small business.

70.002 POST ASSISTANCE REQUIREMENTS:

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.