$200,000 Long Term Loan For Businesses To Invest Overseas

This program is designed to facilitate U.S. investment in emerging market economies by providing medium-term loans and guaranties. Business development financing is available in over 140 international nations and emerging nations. OPIC provides financing for overseas investments that are wholly owned by U.S. companies, or that are joint ventures in which the U.S. sponsoring firm is a participant. The U.S. investor must have at least 25% equity in the project. Projects must be commercially and financially sound, and must be able to repay the loan in hard currency from project cash flow. Projects that will have a negative impact on the U.S. economy, U.S. employment, or the host country are ineligible to participate. Projects wholly owned or controlled by governments are also ineligible. A list of all currently eligible countries is available on the OPIC website. Small businesses can obtain OPIC loans in amounts ranging from $100,000 to $1,000,000. Guaranties are available for up to $2,000,000. OPIC may lend up to 200 million dollars per project. OPIC will lend up to 50% of the cost of start up operation, or up to 75% of the costs for expansion of a successful existing business. Financing can be used for feasibility studies, organizational expenses, land construction, machinery, equipment, training and market development, interest payments during construction, and start-up expenses (including initial losses and adequate working capital). Amortization periods range from 5 to 15 years. Interest rates and guarantee fees are based upon the underlying cost of capital (comparable to US Treasury notes or other US Government guarantee issues of similar maturity), and a risk premium of between 2 and 6 percent. The risk premium is determined based upon an OPIC assessment of the commercial and political risks involved. For detailed product information go to the website noted below and click on the link for products. Contact OPIC, Dr. Cliff Moore, Vice President, 1100 New York Ave., N.W., Washington, DC 20527; 202-336-8400; Fax: 202-408-9866; info@opic.gov}; {http://www.opic.gov/finance/home.htm}.