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. 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.
Additionally, OPIC supports sustained development and international trade while solidifying free markets and operates in about 140 countries. Significant equity investment in the project company by qualified United State sponsor. OPIC financing is usually in the range of 5 to 15 years. 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.