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OPIC Supports U.S. Small Businesses
OPIC has recently undertaken several inititives to increase its support for U.S. small businesses in their efforts to invest in emerging markets overseas. The new Small and Medium Enterprise Department and OPIC's Small Business Center (SBC) were established specifically to address the needs of small and medium-sized American companies in order to ease their entry into new markets. To the extent that a transaction may qualify under the SBC program or the SME program, the Sponsor may select the program which is most suitable to the Project's needs.
Click here to learn the distinctions between the SBC and the SME programs. A new small business insurance ‘wrap’ is offered to companies undertaking projects through the SBC. And partnerships with the U.S. Small Business Administration and small business lender WorldBusiness Capital will enhance OPIC’s outreach to the small business community.
What is the Small Business Center?
Building on OPIC’s outreach efforts to the small business community, the Small Business Center offers qualified small businesses the opportunity to utilize OPIC’s resources with improved customer service, flexible coverage and easier access through a streamlined approval process. Recognizing the financing needs facing many small businesses, the Center is committed to considering all applications within a 60-day period. The SBC is made up of experienced OPIC personnel who are dedicated to working with small businesses.
Why was the Small Business Center created?
The Overseas Private Investment Corporation is committed to helping America’s small businesses grow through investments in over 150 emerging markets around the world. OPIC recognizes that small businesses looking to participate in the global marketplace have unique requirements. Lack of resources to pursue opportunities abroad, concern over political risks, or the inability to find private sector support can prevent U.S. small businesses from expanding overseas. The SBC will help meet these needs by providing financing and political risk insurance to eligible small businesses.
What is the Small Business Center Finance Program?
Loan amounts for overseas investments range from $100,000 to $10 million with terms from 3-15 years. Interest rates will be capped at 7 percent above the Direct Loan Discount Rate which is set by the U.S. Treasury. In addition, there may be a one-time facility fee of up to 2 percent and an annual maintenance fee not to exceed 1 percent of the outstanding balance of the loan. While the eligible U.S. small business must own at least 25 percent of the overseas project, OPIC may be able to finance up to 65 percent of the total project costs.
What is the Small Business Center Insurance 'Wrap'?
OPIC has introduced a stream-lined process to provide political risk insurance protection to U.S. companies receiving loans through OPIC’s Small Business Center (SBC).
In an effort to better meet the growing needs of U.S. small business as they expand into overseas markets, OPIC will offer political risk insurance at a reduced rate as part of its small business loan program. OPIC will offer or ‘wrap’ insurance on equity investments to eligible U.S. equity sponsors or U.S. corporate borrowers receiving SBC loans of up to $10 million from OPIC. The SBC loan borrower may elect this insurance coverage for up to $6 million of their equity investments. Pricing will be based on a one-time fee for the life of the OPIC loan up to 15 years.
To Contact OPIC's Small Business Center
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Overseas Private Investment Corporation 1100 New York Avenue, NW Washington, D.C. 20527 Attn: Small Business Center |
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E-mail: sbc@opic.gov |
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Call Toll Free: 1-800-CALLSBC (800-225-5722) |
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Local Phone: (202) 336-8700 |
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Fax: (202) 336-8701 |
OPIC recognized by the Small Business Exporters Association
 OPIC President and CEO Dr. Peter Watson, center is presented with the Special Achievement Award of the Small Business Exporters Association (SBEA) by SBEA President James Morrison, left, and SBEA Chairman David Ickert, right. |
OPIC President and CEO Dr. Peter Watson in July 2003 received the Special Achievement Award of the Small Business Exporters Association (SBEA), for his “path-breaking efforts at OPIC on behalf of small and mid-sized companies,” according to the SBEA.
“The establishment of OPIC’s new Small Business Center, as well as OPIC’s historic initiative with the U.S. Small Business Administration (SBA) have dramatically enhanced American support for U.S. small businesses and their efforts to expand in emerging markets,” said SBEA President James Morrison. “Today’s award is SBEA’s expression of gratitude to Dr. Watson and OPIC for their hard work, and subsequent results, on behalf of American small businesses.”
OPIC and the U.S. Small Business Administration
The OPIC-SBA Small Business Initiative, concluded in September 2002, formally integrated the agencies’ efforts to promote the expansion of U.S. small businesses into emerging markets. Each agency will provide training on its programs to the other’s personnel in order to better serve U.S. small businesses, and OPIC and SBA staff will meet regularly to share information about economic, financial and political developments, business development, and risk mitigation and management.
