In an effort to better assist small

businesses in their search for

government support when

investing abroad, OPIC has

compiled a list of some of the

services - counseling, insurance,

financing and matching - offered

by U.S. government agencies. This

information is only a summary of

some of the programs offered, and

is based upon the best information

available as of March 1, 1999.

OPIC urges small businesses

interested in obtaining more

information to contact the

particular government agency or

department directly. While every

effort has been made to ensure the

accuracy of the information

provided, the information is

subject to change without notice

and cannot be guaranteed to be

current.

OPIC is committe d

to helping America’ s

small businesses grow

through investment s

in emerging market s

around the world .

OPIC

Small

Business

Guide to

Federal

Programs for

International

Business

OPIC is a self-sustaining federal agency that sells

investment services to small, medium and large American

businesses expanding into some 140 developing nations

and emerging markets around the world. Since 1971,

OPIC has supported $121 billion worth of investments

that will generate $58 billion in U.S. exports and create

more than 237,000 American jobs.

Overseas Private Investment Corporation

1100 New York Avenue, N.W. Washington, D.C. 20527

General information: OPIC InfoLine: 202-336-8799

Information via the Internet: www.opic.gov
Page 2

I. Counseling Services

U.S. Department of Commerce:

Trade Information Center (TIC)

The Trade Information Center is the first stop for companies

seeking export assistance from the government and

comprehensive export counseling programs. TIC trade

specialists: 1) advise exporters on how to find and use

government programs; 2) guide businesses through the export

process; 3) direct businesses to market research and trade

leads; 4) provide information on overseas and domestic trade

events and activities; and 5) supply sources of public and

private export financing. The TIC trade specialists also inform

callers on how to access reports and statistics from the

computerized National Trade Data Bank (NTDB) and direct

businesses to state and local trade organizations that provide

additional assistance. Country information is also available

on Western Europe, Asia, Western Hemisphere, Africa, and

the Near East. [www.ita.doc.gov or call 1-800-USA-TRADE]

The U.S. and Foreign Commercial Service (US&FCS)

The mission of the U.S. and Foreign Commercial Service is to

support U.S. firms (especially small- and medium-sized

companies) in their efforts to increase exports. The U.S. and

Foreign Commercial Service maintains a worldwide service

delivery network with offices in 104 cities in the United States

and 76 countries overseas. The global capabilities of US&FCS

provide seamless service to U.S. firms interested in exporting,

from basic market research to arranging meetings with

potential foreign buyers.

The Export Assistance Center Network

The U.S. Department of Commerce, the U.S. Small Business

Administration (SBA), the Export-Import Bank (ExIm), the U.S.

Agency for International Development, and the U.S.

Department of Agriculture have formed a unique partnership

to establish U.S. Export Assistance Centers (USEACs).

USEACs, which are located in major metropolitan areas

throughout the United States, are one-stop shops that provide

small- and medium-sized businesses with hands-on export

marketing and trade finance support. In addition, there are

Export Assistance Centers (EACs), which provide small- and

medium- sized businesses with export promotion assistance.

The Export Assistance Centers work closely with federal, state,

local, public and private organizations to provide the highest

level of service possible to help American businesses compete

in the global marketplace. The Export Assistance Centers are

responsible for providing in-depth, value-added counseling to

U.S. firms seeking to expand their international activities, as

well as to companies that are just beginning to venture

overseas. Export Assistance Center Trade Specialists: 1)

identify the best markets for their products; 2) develop an

effective market entry strategy based on information

generated from overseas commercial offices; 3) facilitate the

implementation of these strategies by advising clients on

distribution channels, key factors to consider in pricing, and

relevant trade shows and missions; and 4) provide direct

assistance to trade finance programs available through the

federal government, and access to state, and local public

sources and private sector entities.

The Advocacy Center

The Advocacy Center's primary focus is supporting U.S.

businesses bidding on projects where there is a foreign

government or government-controlled entity that has decisionmaking influence over the project.

[www.ita.doc.gov/advocacy or 1-202-482-3896]

The Infrastructure Division

The Infrastructure Division of the Department of Commerce

coordinates government assistance and helps U.S. firms to

compete for major infrastructure and industrial projects

overseas. [202-482-4336]

Multilateral Development Bank Operations (MDBO)

The MDBO counsels U.S. firms about opportunities associated

with funding by the World Bank, the Asian, African, and

Inter-American Development Banks, and the European Bank

for Reconstruction and Development; ensures project

information is available on a timely basis; and organizes and

develops outreach programs throughout the United States.

The development banks assist in financing social and

economic infrastructure and privatization projects in

developing countries. The liaison officers in each of these

institutions are dedicated to the identification of these projects

at the earliest possible stage. They provide in-depth

counseling to U.S. firms on bank opportunities and advocate

on behalf of U.S. firms. [Contact ITA at 1-202-482-3399]

Small Business Administration (SBA):

The SBA provides business development assistance to

exporters, including trade counseling, training, legal

assistance and publications.

Counseling

Counseling is available through SBA's resource partners: the

Service Corps of Retired Executives (SCORE), the Small

Business Development Centers (SBDCS) and Small Business

Institutes (SBIs).
Page 3

SCORE

SCORE is an organization of nearly 13,000 retired and

active executives who volunteer their time to provide

management and technical assistance to small businesses. A

SCORE counselor can also assist you in developing an

international business plan. The local SBA office can match

you with a SCORE volunteer experienced in exporting.

[www.score.gov]

SBDCS

Small Business Development Centers are located on college

and university campuses, and provide a wide variety of

information services at more than 900 locations nation-wide.

SBDC services include, but are not limited to, financial

guidance, marketing, production, organizational

development, engineering and feasibility studies, and

technical assistance. Some SBDCs have designated

international trade centers; all SBDCs provide export

counseling, referrals and/or training. [www.sba.gov.sbdc]

SBIS

In conjunction with colleges and universities across the United

States, the SBA has established over 500 Small Business

Institutes. Under the supervision of instructors, upper-level

undergraduate and graduate business students provide

intensive management assistance to small businesses that

need special help.

Legal Assistance

Under the Export Legal Assistance Network (ELAN), your

local SBA office can arrange a free initial consultation with

an attorney to discuss international trade questions. This is

possible through an agreement among the Federal Bar

Association, the SBA and the U.S. Department of Commerce.

Questions may include contract negotiation, agent/distributor

agreements, export licensing requirements, credit collection

procedures, documentation and much more. [Call 1-800-

ASK-SBA for the address and phone number of an office

near you or contact ELAN's National Coordinator at 202-

778-3080.]

II. Insurance

Export Credit Insurance

Export-Import Bank(Ex-Im Bank) Insurance

Programs: 

The Ex-Im Bank is an independent federal corporation which

provides loans, guarantees and insurance programs to assist

in export financing of U.S. goods and services. [Contact: 1-

800-565-EXIM. Internet address: http://www.exim.gov.]

Small Business Insurance Policy

Ex-Im offers a short-term (up to 180 days) insurance policy

geared to meet the particular credit requirements of smaller,

less experienced exporters. 

Umbrella Policy

The Umbrella Policy enables state agencies, export trading

and management companies, insurance brokers and similar

entities to act as intermediaries (administrators) between ExIm Bank and smaller exporters to assist these exporters in

obtaining export credit insurance.

Short-Term Single Buyer Policy

For exporters who do not want to insure all of their shortterm, foreign credit sales under a multi-buyer type of policy

(which Ex-Im also offers), the single buyer policy is available

to cover single or repetitive sales to one foreign buyer.

Medium-Term Insurance

and Guarantee & Insurance Policy

Medium-term insurance (up to five years repayment for

export orders not in excess of $10 million) and a Guarantee

and Insurance Policy is available for exporters. To determine

which program is most suitable for your company's needs,

please contact Ex-Im at the numbers listed above.

Political Risk Insurance

Overseas Private Investment Corporation (OPIC)

Programs:

Small Business Insurance Contract

OPIC’s Small Business Definition

c All companies, both service and industrial, with annual

sales of less than $250 million (taking into account the

consolidated sales of the parent company)

c Entities with no revenues per se, such as individual

private investors or newly-formed companies, with net

worth or stockholders’ equity of less than $67 million

The Small Business Contract is designed to provide simplified,

streamlined, and comprehensive political risk insurance

coverage to small businesses that invest equity or parent

company debt in their overseas projects. The contract offers

coverage for a term of up to 20 years for inconvertibility,

expropriation, and political violence for assets and business

income.
Page 4

Contractors & Exporters

OPIC's program for contractors and exporters insures

against:

c wrongful calling of bid, performance, or advance

payment guaranties, customs bonds, and other

guaranties;

c loss of physical assets and bank accounts due to

confiscation or political violence, and inconvertibility of

proceeds from the sale of equipment used at the site;

and

c losses due to certain breaches by the foreign buyer of

the contractual disputes resolution procedure.

This insurance can protect small businesses acting as

contractors in international construction, sales, or service

contracts, and exporters of heavy machinery, turbines,

computers, medical equipment and other goods. Typically,

coverage is issued when the company has a contract with a

foreign government buyer, with a secure source of funding.

For transactions covered by the contractors and exporters

program, the term is generally equal to the duration of the

underlying contract or agreement.

Loan Guaranty

The purpose of this product is to provide coverage for small

businesses providing loan guaranties to U.S. financial

institutions that are lending to overseas subsidiaries or

projects. All three coverages - inconvertibility, expropriation,

and political violence - are offered for amounts paid out

under the terms of the guaranty that cannot be recovered

from the foreign enterprise due to covered political events.

Technical Assistance

A small business may provide technology or services, e.g., a

license of patented technology or the provision of consulting

services, under a technical assistance contract to a foreign

enterprise. Under the technical assistance contract, the small

business will be paid by the foreign enterprise for services

rendered. OPIC insurance can protect the insured against

political risks - inconvertibility, expropriation, and political

violence - that cause a disruption in the payment stream and

result in the small business remaining unpaid by the foreign

enterprise.

Other Insurance Products

OPIC's other insurance products may also be used by small

businesses. Go to OPIC's website at www.opic.gov for a full

description of OPIC products or call 202-336-8400.

III. Financing

Small Business Administration (SBA)

Programs

The SBA works with intermediaries, banks, and other lending

institutions to provide loans and venture capital financing to

small businesses unable to secure financing through normal

lending channels. There are over 100 Small Business

Development Centers across the country that provide training,

counseling, research and other specialized assistance at

nearly 1,000 locations nationwide. [Contact: SBA Answer

Desk, 1-800-8-ASK-SBA. Internet address:

http://www.sba.gov.]

Export Working Capital Program:

The Export Working Capital Program (EWCP) helps small

businesses obtain working capital to complete export sales.

The EWCP can support single transactions or multiple export

sales. Under this program, SBA can guarantee up to 90

percent or $750,000, whichever is less, of a private-sector

loan. Loan maturities are generally for 12 months; revolving

credit lines may be renewed twice, up to a total of 36

months. [www.sba.gov/financing or 1-800-827-5722]

Use of Proceeds:

Guarantees can be extended for pre-shipment working

capital, post-shipment exposure, or a combination of the two.

A pre-shipment guaranty is used to finance the production or

acquisition of goods and services for export. A post-shipment

guaranty is used to finance receivables resulting from export

sales.

Interest Rates

Under the Export Working Capital Program, the maximum

interest rates are negotiable between the applicant and the

lender. 

Preliminary Commitments

Under the EWCP, you can apply directly to the SBA for a

preliminary commitment for a guaranty. With SBA's

preliminary commitment in hand, you can then convince your

lender to extend the credit. The lender must apply to SBA for

the final commitment.
Page 5

Regular Business Loan Program

Under this program, the SBA can guarantee up to 90 percent

of a bank loan or $750,000, whichever is less.

Use of Proceeds

Small businesses that need money for fixed assets or term

working capital may be eligible for the SBA's regular 7(a)

Loan Guaranty Program. Loan guaranties for fixed-asset

acquisition have a maximum maturity of 25 years.

Guaranties for general purpose working capital loans have a

maximum maturity of seven years.

Eligibility

To be eligible, the applicant's business generally must be

operated for profit and fall within size standards set by SBA.

Export trading companies (ETCS) and export management

companies (EMCS) also may qualify for the SBA's business

loan guarantee program. Ineligible borrowers include

businesses engaged in speculation or investment in rental real

estate. 

International Trade Loans

The International Trade Loan Program provides long-term

financing to help small businesses compete more effectively

and to expand or develop export markets.

Under this program, SBA's guarantee can extend up to $1.25

million. SBA's maximum share for facilities and equipment is

$1 million; the maximum share for working capital is

$750,000. Loan maturities cannot exceed 25 years,

excluding the working capital portion of the loan.

Use of Proceeds

Proceeds may be used to purchase or upgrade facilities or

equipment, and to make other improvements that will be used

within the United States to produce goods or services,

No debt payment is allowed. Proceeds can be used to buy

land and buildings; build new facilities; renovate, improve or

expand existing facilities; and purchase or recondition

machinery, equipment and fixtures. The working capital

portion of the borrowing could be in the form of either an

EWCP loan or a portion of the term loan.

Eligibility

Applicants must establish either of the following to meet

eligibility requirements:

c Loan proceeds will significantly expand existing export

markets or develop new ones; or

c The applicant's business is adversely affected by import

competition.

Small Business Investment Company Financing

A Small Business Investment Company (SBIC), approved and

licensed by the SBA, may provide equity capital or working

capital exceeding the agency's $750,000 statutory maximum.

To be eligible for SBIC financing, at least half of the small

business's assets and operations must be in the United States.

Unlike the SBA, SBICs can invest in export trading companies

in which banks have equity participation as long as other

SBIC requirements are met.

EXIM Bank Financing Programs

Working Capital Guarantee Program

The Working Capital Guarantee Program helps small and

medium-size businesses obtain critical pre-export financing

from commercial lenders. Ex-Im Bank will guarantee 90

percent of the principal and interest on transaction-specific

loans or revolving lines of credit that are extended to eligible

exporters. The funds may be used for pre-export activities,

which include the purchase of raw materials, labor, overhead,

performance bonds, retainages, and warranties. Loan

amounts of over $833,333 are processed by Ex-Im Bank.

Lower amounts go to the Small Business Administration (SBA).

[www.exim.gov/ or 1-800-565-3946]

Direct Loans and Guarantees

This program extends direct loans to foreign buyers or

guarantees to financing intermediaries for creditworthy

entities who purchase U.S. capital goods or services. The

loans and guarantees offered are for 85 percent of the U.S.

export value. Direct loans provide competitive fixed-rate

financing to the foreign buyer. The guarantee coverage

provides protection to the finance source against payment

default for either political or commercial reasons. Interest

rates for the guarantees are negotiated between the finance

source and the seller and are typically floating rates. Political

only guarantee coverage is available. In addition, Ex-Im Bank

is willing to provide support for a broad range of

environmental exports. There are specialized transaction

structures for certain lease transactions, industrial design,

architectural or engineering services, and overseas operations

and maintenance contracts.
Page 6

Limited Recourse Project Finance Program

The Limited Recourse Project Finance Program provides

financing for projects that are dependent on the cash flows of

the project for repayment, not on recourse to a foreign

government, financial institution or established corporation.

Combinations of direct loans, political risk only coverage, or

comprehensive guarantees for commercial bank loans are

available. While traditionally Ex-Im Bank limited its

construction period coverage to Political Risk Only

guarantees, pre-completion comprehensive coverage is now

available for select projects. Ex-Im Bank offerings include:

financing up to 85 percent of the U.S. export value, financing

of interest during construction, financing of host country local

costs of up to 15 percent of the U.S. contract value and up to

the maximum repayment terms consistent with OECD

guidelines.

U.S. Department of Agriculture

Facility Guarantee Program

The Facility Guarantee Program provides credit guarantees

for the sale of manufactured goods and services to enhance

and establish agribusiness-related facilities overseas that

primarily handle, store, distribute or process U.S. agricultural

products and commodities. The FGP assists importers in

acquiring needed manufactured goods and services while

protecting exporters from most of the risk of nonpayment by

the foreign bank. [www.fas.usda.gov or 1-202-720-3241]

OPIC Finance Programs

OPIC provides financing through direct loans and loan

guaranties that provide medium- to long-term funding to

ventures involving significant equity and/or management

participation by U.S. businesses.

OPIC can provide financing on a project finance or a

corporate finance basis. Rather than relying on sovereign or

sponsor guaranties, project financing looks for repayment

from the cash flows generated by projects. Therefore, OPIC

carefully analyzes the economic, technical, marketing and

financial soundness of each project. There must be an

adequate cash flow to pay all operational costs, service all

debt, and provide the owners or sponsors with an adequate

return on their investments. To the extent that such project

financing is appropriate, sponsors need not pledge their own

general credit beyond the required completion undertakings.

Corporate finance looks to the credit of an existing corporate

entity other than the project company to support debt

repayment.

OPIC can provide medium- and long-term financing in

countries where conventional financial institutions often are

reluctant or unable to lend on such a basis. Since its

programs support private sector investments in financially

viable projects, OPIC does not offer concessionary terms

usually associated with government-to-government lending,

nor does it typically offer financing of export sales unrelated

to long-term investments in overseas business. OPIC will not

finance projects that can secure adequate financing from

commercial sources.

Financing Techniques: OPIC provides loan guaranties, which

are typically used for larger projects, and direct loans, which

are reserved for projects involving U.S. small businesses and

cooperatives. OPIC can normally guarantee or lend up to

$200 million per project. The standard minimum loan size

has been reduced for small businesses from $2 million to only

$250,000.

Other Finance Products

OPIC's other finance products may also be used by small

businesses. Go to OPIC's website at www.opic.gov for a full

description of OPIC products or call 202-336-8400.

OPIC Funds

Allied Capital Small Business Fund: This OPIC supported fund

provides financing of between $3-5 million for small

businesses. The Fund is primarily interested in companies

that can generate between $20-200 million in sales per year,

and seeks to support small businesses which have a local

investor or expertise in the sector in which the company is

operating. Contact Rick Fearon at 202-331-1112.

IV. Grants

U.S. Trade and Development Agency

The U.S. Trade and Development Agency (TDA) funds

feasibility studies, orientation visits, specialized training

grants, business workshops, and various forms of technical

assistance. TDA enables American businesses to compete for

major infrastructure projects in mid-income and developing

countries. To qualify for TDA funds, the proposed project

must have export potential, identified financing resources,

foreign competition, and serve as a development priority for

the host government. [Contact: TDA Information Resource

Center, (703) 875-4357; fax (703) 875-4009. Internet

address: http://www.tda.gov.]
Page 7

Feasibility Studies

A primary activity of TDA is the grant funding of feasibility

studies and other project planning activities for major projects

in developing and middle-income countries. The studies are

conducted by U.S. private sector firms and represent a wide

range of host government high priority sectors, including:

energy, transportation, telecommunications, information

technology, manufacturing, minerals development, and the

environment. Feasibility studies assess the economic,

financial, and technical viability of a potential project.

Applications for feasibility studies are accepted with host

country endorsement.

Technical Assistance Grants

The agency funds activities designed to bring U.S. technical

assistance to bear on a variety of projects.

Definitional Missions (DM)

After receiving a request to fund a major study for a new

project, the agency hires a technically qualified U.S.

consultant to visit the country and discuss the plan with the

project sponsors. In addition to making recommendations as

to whether the project should be funded, the definitional

missions consultant works with the project sponsor to define

the work program for the proposed feasibility study.

Trust Funds for U.S. Firms at the Multilateral

Development Banks

The U.S. Trade and Development Agency maintains trust

funds at five multilateral development banks (MDBs): the

World Bank, the International Finance Corporation, the

European Bank for Reconstruction and Development, the InterAmerican Development Bank, and its private sector arm, the

Inter-American Investment Corporation. These funds can be

used for technical assistance and for feasibility studies. Most

are known as Evergreen Funds. TDA maintains a minimum

balance that is readily available to fund project opportunities

for U.S. firms or to help U.S. businesses take advantage of

time-sensitive projects. Since MDBs finance many of the

capital projects in the developing world, TDA's close

relationship with them is advantageous for the U.S. business

community. In addition to the valuable project information

gained through the MDBs, which TDA passes on to American

firms, working with bank projects ensures that a potential

funding source has been identified -a plus toward successful

implementation. [Contact ITA at 1-202-782-3399 or TDA at

1-202-875-4357]

Training Grants

TDA has authority to offer training grants in support of shortlisted companies on a transaction-specific basis. These grants

frequently enable a company to cover the cost of training

local personnel on the installation, operation, and

maintenance of equipment specific to its bid proposal.

V. Business Matching Systems

Department of Commerce

Export Finance Matchmaker: The Export Finance

Matchmaker is designed to match over the internet U.S.

exporters with sources of export financing or risk mitigation.

Matching will be done by comparing information collected

from the exporter to corresponding offerings of the export

finance/risk mitigation firms. [www.ita.doc.gov or 1-202-

482-3050]

Agency for International Development

Global Technology Network: GTN is a trade lead/business

matching program that facilitates the transfer of U.S.

technology and services to address global development

problems. This is accomplished by matching a country's

development needs with U.S. firms equipped to provide the

appropriate technological solutions. GTN focuses on the

following sectors: agricultural technology, communications

and information technology, environment and energy

technology, and health technology. [www.info.usaid.gov or 1-

202-663-2660]