The Overseas Private Investment Corporation (OPIC) is an independent U.S. government agency that provides financing to U.S. companies making investments in developing countries. A an Enterprise Development Network (EDN) loan originator, IESC provides advisory services to small- and medium-sized enterprises seeking to obtain long-term loans from OPIC to start and/or expand their businesses in eligible developing countries. These services include assisting firms in developing business plans and financial projections and guiding them through the loan process.
OPIC Financing and Political Risk Insurance
OPIC established EDN as an alliance between OPIC and the private sector loan originators to help source and process deals for small and medium enterprises, including academic institutions and non-profits. IESC was one of the first EDN loan originators.
OPIC provides long tenor loans at fixed rates. To qualify for financing under this program, the project company must:
- Have a minimum of 35 percent of the total project cost in equity in a start-up project and 25% in an expansion;
- Have a U.S. sponsor with at least a 25 percent involvement in the project company, such as an ownership stake, management responsibility, or technical assistance;
- Submit proof of annual revenue not exceeding $250 million;
- Submit proof of profitability for the last 3 years of operation;
- Demonstrate past experience in the nature of the project; and
- Demonstrate that the project has a positive developmental impact in the host country.
Priority sectors for OPIC include:
- Renewal Energy/Clean Energy/Energy Efficiency
- Financial Services/High Multiplier Effect
IESC can also assist clients applying for OPIC financing with their OPIC Political Risk Insurance (PRI) applications. OPIC offers PRI for currency inconvertibility, expropriation, and political violence for assets and business income.
Additional IESC Services and Assistance
In addition to assisting small and medium enterprises with their OPIC loan applications, IESC will also screen potential deals for:
- Quality of sponsors
- Adherence to OPIC policies
- Good business prospects.
IESC can provide additional services to small and medium size companies before, during, and after the loan origination process through targeted technical assistance using IESC volunteers and consultants.
More Information and Getting Started
For more information about IESC’s OPIC services, please click here.
If you are interested in learning whether your project qualifies for OPIC financing, please complete the OPIC Pre-Application form and submit it to email@example.com.